The rise in real estate market had a unexpected effect on the rental market. The craze for condo-conversions took over the Las Vegas real estate market and thousands of rental apartments were converted or earmarked for conversion to condos. These condos were either sold back to the renters of the apartments or to other homebuyers.

Result rental units went down significantly. Those who couldn’t afford the initial cashdown payments or those living in the city only for a shortwhile were finding it increasinly difficult to rent out an apartment at reasonable rates.

After being hit badly by the condo conversion craze rental apartments are making a come back. As condo conversions are hitting peak values apartment investors are outbidding the condo converters as the investors are expecting high single-digit (annual) rent growth over the next few years. Multiple offers and high bids are the order of of the day for apartment complexes.

The 224-unit Remington Canyon apartments was bought by JRD Inc. for $27.1 million. JRD Inc also paid $29.4 million for the 248-unit Ventana Canyon apartments and $20.3 million for the 168-unit Palermo apartments. Silverwood LLC paid $27.3 million for the 296-unit Silverwood apartments.

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