When Ken Blomsterberg was introduced to Gregory Peek over a decade ago, the two foresaw a fruitful real estate partnership. But neither imagined they would make history with the largest multifamily transaction in Northern Nevada.
The Blomsterberg-Rife Group brokers charted the uncertainty of the COVID-19 commercial real estate market, representing both buyer and seller in the 1,077-unit portfolio sale. They closed a $302.5 million deal that was selected by outside judges who are industry professionals in the area as the winner of the CoStar Impact Award for sale/acquisition of the year in Reno.
ERGS sold the properties to MG Properties Group of San Diego, along with investment firm Osso Capital of New York City.
The ERGS portfolio began as Oak Manor and Angel Street Apartments, two smaller properties adjacent and popular with those at the University of Nevada, Reno. George Peek, Gregory's father, saw potential in Reno's expansion and took a risk to build the Sierra Sage Apartments, a complex located farther north than some investors felt comfortable with.
While some saw it as too far from Reno's urban core, George Peek considered it an opportunity and built the 232-unit complex, and later expanded the portfolio to encompass eight different properties.
When Ken Blomsterberg asked what it would take to sell, Gregory Peek offered a number he would be comfortable with, and the Blomsterberg-Rife Group used limited marketing to find investors. They targeted those who would know the rarity and value of eight developed complexes within the highly sought-after Reno area.
Peek mentioned many sleepless nights and times he thought the deal was self-imploding but cited the Blomsterberg-Rife Group's professionalism and quick thinking as key to pushing the transaction forward.
With the new acquisition that closed on Feb. 23, 2022, the buyer's footprint in the Reno-Sparks area expanded by more than 50%.
About the project: The 1,077-unit portfolio sale is in the highly sought-after Reno/Sparks area, which appealed to the buyers. It includes the North Peak Apartments, a total of about 350 units that offer one-, two- and three-bedroom units.
What the judges said: The deal "raised the bar for a new high sales price in multifamily property acquisition," said Jeff Frame of Frame Architecture Inc.
"The sale was extremely complex, including timely inspections of over 1,000 apartments," said Robin Lee, executive director of the Nevada State Apartment Association. She added that the sale also "could expand and/or improve multifamily housing in the area."
They made it happen: Marcus & Millichap’s Kenneth Blomsterberg, Senior Managing Director of Investments and Senior Director of the National Multi-Housing Group, Ryan Rife, First Vice President Investments and Director of the National Multi-Housing Group, and Daniel Winrod, Associate.