the-element

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1234 Lorem Ipsum Avenue | Glenview, IL 60025

Berkadia®, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is an industry leading commercial real estate company providing comprehensive capital solutions and investment sales advisory and research services for multifamily and commercial properties. Berkadia® is amongst the largest, highest rated and most respected primary, master and special servicers in the industry. This advertisement is not intended to solicit commercial mortgage company business in Nevada. © 2025 Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Berkadia® and Berkadia Commercial Mortgage® are trademarks of Berkadia Commercial Mortgage LLC. Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. Tax credit syndication business is conducted exclusively by Berkadia Affordable Tax Credit Solutions. For state licensing details for the above entities, visit www.berkadia.com/licensing.

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Jared Glover

INVESTMENT SALES

Managing Director 702-498-4232 jared.glover@berkadia.com NV License #B.0144864

Berkadia is pleased to exclusively present the opportunity to acquire The Element (or the “Property”), a 206-unit garden-style community located in a top-performing Reno submarket featuring +4.50% average annual rent growth over the past five years. With more than $4.2MM in recently completed capital improvements and +4% effective rent increases on T-90 trade outs, The Element provides the opportunity to realize an anticipated ±7.1% cash-on-cash return year 1 while benefiting from existing renovation premiums and exceptional leasing momentum, or seek additional upside through the completion of interior renovations. Ideally located within walking distance of the market’s only Whole Foods, a short commute to the region’s leading employment hubs, and within one hour of Lake Tahoe, The Element is poised to outperform as Reno adds a projected ±10,000 additional residents over the next five years and the local multifamily pipeline declines to historical lows.

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Executive Summary

825 Delucchi Lane, Reno, NV, 89502

Prime South Reno Living Surrounded by Expansive Retail Offerings

Proven Value-Add Opportunity Through Washer/Dryer Installation

Investment Highlights

With over $3 million in unit interior upgrades since acquisition, The Element allows the next owner to benefit from existing renovation premiums while presenting the optionality to complete remaining upgrades and washer/dryer installs on classic units and 16 units without washer/dryer. Upon completion of remaining washer/dryer installs, investors have the option to convert the existing laundry facility to a residential unit while collecting $100 per unit in monthly washer/dryer premiums - presenting the opportunity to capture ±$35k in additional revenue per year.

Walkable to the only Whole Foods Market in the area, Target, and an array of restaurant and retail offerings, The Element is also located adjacent to the Meadowood Mall – home to Macy’s, Dick’s Sporting Goods, Round1 Bowling, JCPenney, Coach, Foot Locker, H&M, and more. Conveniently situated at the intersection of I-580 and HWY 659, and within walking distance to the RTC 1, 12, and 56 bus lines, The Element’s residents are well connected to leading employment hubs in the Reno MSA and are within a 10-minute drive to the Reno-Tahoe International Airport. Located proximate to the 70-acre Anderson Regional Park, Lakeridge Golf Course, and the Truckee River, The Element is also within one hour of Lake Tahoe – providing residents access to world-class skiing and snowboarding, in addition to an abundance of hiking, mountain biking, and water sports.

Robust Apartment Fundamentals Fuel Growth In Top Performing Reno Submarket

Boasting +4.5% average annual rent growth and +96% average occupancy since 2020, outsized apartment demand within The Property’s submarket is expected to continue with ±3.20% average annual rent growth and +98% average occupancy projected through 2029 by Costar. With only one property under construction in The Element’s submarket, demand for the area’s existing multifamily inventory is expected to magnify as Reno welcomes a projected ±10,000 additional residents over the next five years and average annual household incomes climb to ±$130K. Reno’s home prices have skyrocketed +40% since 2020 to ±$570K, translating to a ±150% monthly premium to the Property’s renovated market rents and presenting exceptionally high barriers to homeownership for the average household earning ±$110K.

Booming Economy Driven By Corporate Expansions & Durable Employment Base

Offering relative housing affordability, an expanding local employment base, zero state income tax, year-round outdoor recreation, and access to Lake Tahoe, Reno’s population has grown by ±22% since 2010 as the area’s increasingly compelling value proposition continues to attract an influx of individuals and businesses. Located within a 30-minute drive of The Element, the 107,000-acre Tahoe-Reno Industrial Center is home to over 20,000 jobs across a mix of distribution, manufacturing, data centers, and battery technology companies, including Tesla’s Gigafactory, Panasonic, Switch, Google, Amazon, Blockchains, Walmart, and Prologis. Reno features several new hospitals and medical research facilities located within a short commute of The Element, including the Sierra Medical Center, Renown Children’s Hospital, Renown Regional & South Meadows Medical Centers, and Carson Tahoe Health – cementing itself as a major healthcare hub and projected to add 10,000 healthcare jobs through 2028.

To be determined by market

To be announced

Free & clear of existing financing

825 Delucchi Lane Reno, NV 89502

Washoe

1975 & 1977

±7.48

206

±325,829

Price

Bid Deadline

Terms of Sale

Address

County

Year Completed

Site Size Acres

Site Size Square Feet

Total Residential Units

±728

Average Unit SF

±150,024

Net Rentable Square Feet

$1,434

Average In-Place Rent

$1.97

Average In-Place Rent/SF

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Immediate Yield With Upside Through Leasing Momentum

Given the +$4.2 million in large-scale asset upgrades undertaken since 2019, The Element is positioned to deliver an anticipated ±7.1% cash-on-cash return Year 1, growing to ±8.4% by Year 3, without completing any further renovations at the Property. The Property presents investors the opportunity to benefit from proven steady cash flows while capitalizing on recent leasing momentum, as demonstrated by the Property’s ±95% occupancy over the trailing 12 months and +4% average effective rent increases on the trailing 90 days of new leases and renewals.

Proven Value-Add Opportunity Through Washer/Dryer Installation

Since 2019, ownership has infused over $4.2 million in capital improvements, with over $3 million devoted to unit interior upgrades, allowing the next owner to benefit from existing premiums while presenting the optionality to complete renovations on classic units and add washer/dryers to the remaining 16 units. Given the large-scale asset upgrades undertaken in recent years, The Element is positioned to deliver an anticipated ±7.00% cash-on-cash return Year 1, growing to ±8.20% by Year 3, without completing any further renovations at the Property. The Property presents investors the opportunity to benefit from proven steady cash flows while capitalizing on recent leasing momentum, as demonstrated by the Property’s ±95% occupancy over the trailing 12 months and +4% average effective rent increases on the trailing 90 days of new leases and renewals.