Distressed Asset Investment Analysis – Las Vegas, Nevada

Responding to investor interest in acquiring semi-finished residential lots being sold by a financially distressed homebuilder in the Las Vegas market, TCG evaluated the opportunity to purchase the distressed assets under the assumption of a three-year holding period before disposition. Demographic and employment-driven demandassessments for the Las Vegas area were used to estimate the timing of the local housing market recovery as well as the likely value of the assets at the end of the investment horizon. The study’s final appraisal of the investment opportunity reflected its key finding that the residential lots were entitled to multifamily residential uses at higher densities than the near-term market would support, given the supply level and absorption velocity of new and existing homes in the Las Vegas area.