Madison Realty Capital Lends $60M for Nonperforming Loan Purchase of Las Vegas Apartments

Veneto Capital Management has secured $60 million of loan-on-loan financing to acquire a Las Vegas multifamily asset via its nonperforming debt, Commercial Observer has learned.

Madison Realty Capital originated the debt package for the acquisition of the nonperforming loan secured by the 304-unit Tuscan Highlands property in the Southern Highlands area of Las Vegas. The garden-style apartment complex was previously owned by Keller Investment Properties, which acquired the resort-style community in 2021 after landing a $86.25 million bridge loan from KeyBank Real Estate Capital. 

“We are pleased to provide an innovative financing solution to a highly experienced multifamily owner to support the acquisition of a nonperforming loan, which closed in only 30 days,” Josh Zegen, managing principal and co-founder of Madison Realty Capital, said in a statement. “This transaction underscores Madison’s ability to navigate complex transactions and quickly deliver creative note financing solutions that meet the evolving needs of lenders and borrowers across the country.”

Located at 12656 Southern Highlands Parkway, 16 miles south of Downtown Las Vegas, Tuscan Highlands consists of studio, one-bedroom and two-bedroom apartments and 537 parking spaces. Community amenities include a fitness center, a Pilates studio, a yoga room, a spa, saunas, steam rooms and electric vehicle car charging stations.

Officials at Los Angeles-based Veneto Capital Management did not immediately return a request for comment.

Andrew Coen can be reached at acoen@commercialobserver.com