Businessmen see opportunity in distressed NLV homes

By Aida Ahmed

Friday, Sept. 23, 2011 | 2:40 a.m.

When Doug Eisner saw an unfinished development of foreclosed town homes at 4970 Camino Al Norte in North Las Vegas, he didn’t see a distressed property.

He saw potential.

The development — unattractive and dirty — was a blight on the community, he said.

With only 36 units completed, 86 partially finished and 24 foundations poured, the managing director of The Calida Group figured the property needed a luxury makeover, and that’s what he and his partner, Eric Cohen, are giving it.

Their company, which has 2,000 rental units in the city, bought the property for $3.7 million from the Federal Deposit Insurance Corp. in October 2010, after the FDIC seized the bank that had foreclosed on the development.

Originally conceived and constructed as town homes for sale, none were actually ever sold, though some units were rented out.

“Every six months, someone new was in charge and no one was really trying to make it a success. It was just a piece of dirt, and we’ve seen it progress over time,” Eisner said.

The day Eisner’s company took over, it recognized major changes would be needed to turn the property around, such as discontinuing leases with tenants causing trouble for other occupants, he said.

The new owners also saw that neighbors were leaving trash in the street, so Eisner bought each renter a trash bin. Problem solved.

In addition, the neighborhood clubhouse was renovated and landscape improvements are under way.

“We try and build a sense of community between management and neighbors so everyone becomes friends,” Eisner said. “People that rent with us tend to be socially minded and want to know neighbors. Having that sense of community is pretty unique in Las Vegas, where there is usually a 70 percent turnover. We have 80 percent retention.”

The plan seems to have worked. Eisner says his top-line revenue is up 7 percent in six months, and the 36 finished units are fully occupied.

The homes, which are up to 1,500 square feet and include two-car garages, private entries, at least two bedrooms and a den, rent for about $1,300 a month.

So far, the project has created 80 jobs and will be responsible for more than 100 jobs within the next 18 months when construction starts on the back section of the property.

Eisner plans to open 24 units in the next month, and construction for the remaining town homes will start in January.

“It’s performing better than what we projected,” Eisner said. “It’s going to turn from an abandoned, beat community into one the three nicest apartment communities in North Las Vegas.”