Welcome to the Commercial Real Estate Newsletter, a free resource from Nevada State Bank’s CRE Department.

The multifamily market in southern Nevada is going strong, with many people choosing to rent rather than purchase a home or condo. Several factors play into this, including the transient nature of our population, the fear of a down market affecting housing values, and the reluctance of residents, especially younger people, of being tied down to one place.

The Lotus apartment project is a good example of a new trend in multifamily. It’s close to the Strip rather than suburban, it’s more high-end than most projects, and it features amenities that appeal to people who are renters by choice, not renters by necessity. We recently talked with Jonathan Fore, Managing Partner and Vice President of Fore Property Company, about how he developed the Lotus project and what his company is planning for additional infill multifamily projects in Las Vegas.

Fore Property Company has developed more than 23,000 apartments in more than 40 cities nationwide, and they have been active in Southern Nevada for 40 years. Jonathan Fore has worked in Las Vegas for 18 years, but also assisted in projects outside Nevada. “In Portland and Denver, I saw that infill projects with onsite amenities were very successful,” he said. “When I looked at the supply of apartments in southwest Las Vegas, I decided I’d rather have 300 units a mile from the Strip than have 300 units among the 3,000 that are along the Southern Beltway.”

So, the idea of Lotus was born. Fore broke ground in 2016 for the 295-unit project at Valley View and Spring Mountain, near Chinatown and just minutes from I-15 and the Strip. “It exceeded our expectations for rents and also for how quickly the units rented,” he said. “It was the first purposely-built rental housing in the resort corridor that was amenitized and managed by a professional management company.” The project was so successful that it increased rapidly in value, and was sold in November 2018, proving how insightful his strategy had been.

The success of the Lotus project encouraged Fore to start a similar project at Twain and I-15. They bought a 6-acre parcel adjacent to the Wyndham timeshare tower, which had originally been slated for a second tower. Fore’s new project will be similar to Lotus at 295 units, but instead of an Asian theme, naming and marketing efforts will play off its location within walking distance of the Strip. It’s also an easy drive to the new Raiders Stadium.

FIRST QUARTER 2019 | ISSUE 14

COMMERCIAL REAL ESTATEQUARTERLY

A division of Zions Bancorporation, N.A. Member FDIC Equal Housing Lender

The information provided is presented for general informational purposes only and does not constitute tax, legal or business advice. Any views expressed in this article may not necessarily be those of Nevada State Bank, a division of Zions Bancorporation, N.A. Member FDIC

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FIRST QUARTER 2019 | ISSUE 14

COMMERCIAL REAL ESTATEQUARTERLY

A division of Zions Bancorporation, N.A. Member FDIC Equal Housing Lender

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What’s next for Fore? He has a parcel under contract for another infill project in the resort corridor, this time on the east side of the Strip.

We’re happy to bring you these quarterly updates as part of our commitment to serving the needs of commercial real estate developers, owners, and brokers. Here at Nevada State Bank, we’ve been helping developers and owners finance commercial real estate projects for nearly 60 years. This gives us a unique, long-range perspective on the Nevada marketplace. In addition, our affiliation with Zions Bancorporation allows us to finance projects in other states within the Zions footprint.

This newsletter is designed to be passed along, so feel free to forward this email to your business associates. You can view previous issues of this newsletter at our website, including updates on Las Vegas’ redevelopment incentives, as well as CRE news from the City of Henderson and from North Las Vegas.

I hope you find this newsletter enjoyable and useful. For any additional questions, feel free to contact me during regular business hours.

Sincerely,

Jeff JenkinsEVP/Statewide Real Estate Lending Manager702.855.4730 | Jeff.Jenkins@nsbank.com

Fore Property Company’s new multifamily project on Twain near the Las Vegas Strip