Investment group buys 39 units at suburban condo complex

Courtesy photo

Park House, a three-story, 83-unit condo complex on Flamingo Road, between Durango Drive and Fort Apache Road, in the southwest valley.

Nearly six months after buying dozens of condo units in a Strip high-rise, a San Diego investment group is laying a similar bet in the Las Vegas suburbs.

Pathfinder Partners has purchased 39 units in Park House, a three-story, 83-unit condo complex on Flamingo Road, between Durango Drive and Fort Apache Road, in the southwest valley.

The $7.7 million purchase closed Feb. 26, county records show.

Pathfinder says construction of the upscale complex was finished in 2012 and that it acquired the remaining units individual buyers never purchased. When the sale closed last month, six of its units already were being rented at an average rate of $2,000 per month.

By comparison, the average rental rate in the valley in the third quarter was $910, according to the most recent data from brokerage firm Colliers International.

Originally called Luxe Lofts, the 4-acre, boom-era project was mothballed — partially built — by previous owners. It was seized through foreclosure in 2010 and acquired in 2011 by investment firms CrossHarbor Capital Partners and BondRok Partners, which renamed it The Modern, according to property records and media reports.

Pathfinder co-founder Lorne Polger — whose company specializes in bubble-era projects that ran into trouble when the economy tanked — said in a news release today that his group plans to rent the condos “in the near-term and will explore an individual condo sales program” in the next two years.

With homes ranging from 1,130 to 2,490 square feet, Park House, 8925 W. Flamingo Road, offers stainless steel appliances, a yoga studio, a sauna, underground parking and a communal entertainment room with billiards, according to the announcement.

Polger’s purchase follows his acquisition of 64 units in Sky Las Vegas, a 45-story north Strip condo tower, for about $18.1 million on Sept. 10.

His group bought the units from Sky’s original developers, who never lost the luxury high-rise to foreclosure but whose sales volume evaporated when the bubble burst and Las Vegas’ once-roaring economy collapsed.

Sky, 2700 Las Vegas Blvd. South, across from the long-mothballed Fontainebleau resort, has 409 units and opened in 2007. Its developers, M. Aaron Yashouafar and David Pourbaba, closed about 300 sales that year alone, then just 22 from 2008 through 2014, an average of about three per year, Clark County records indicate.