Developer pays about $1,860 for 18.6 acres of federal land near M Resort to build 390 affordable apartments in Henderson

What happened

Ovation Development has acquired about 18.6 acres of Bureau of Land Management property in Henderson for $100 per acre, or about $1,860 total, the Las Vegas Review-Journal reported. Officials said Thursday that the city was involved in the deal. The developer plans to build a 390-unit apartment complex for low-income tenants on the site.

According to property records cited by the Review-Journal, Ovation took ownership of the land last month. The parcel sits near the southeast corner of Las Vegas Boulevard and Larson Lane, close to the M Resort.

Henderson officials, the BLM and Ovation held a news conference at the site on Thursday. The event was held to announce that the land transfer was complete and to discuss the project.

How the land deal worked

Price versus appraised value

The land had an appraised market value of $13.65 million, according to M. Ryan Chatterton, acting district manager of the BLM's Southern Nevada district office. Ovation paid about $1,860 for the parcel.

Henderson Mayor Michelle Romero said Thursday that land acquisition is one of the biggest obstacles to developing what she called "attainable" housing. She said the property in the Ovation deal was sold "at a nominal cost," the Review-Journal reported.

Who is building it

The Review-Journal described Ovation as one of the biggest apartment developers in Southern Nevada. The company's plan for the Henderson site is a 390-unit complex aimed at low-income tenants.

What the project includes

Cost and timeline

Ovation Chief Operating Officer Jess Molasky said the developer aims to break ground on the roughly $113 million project in three to six months. Molasky said the complex will include a pool, a fitness center and a food pantry.

Who can rent there

According to Molasky, the units will be for residents who earn no more than 60 percent of the area median income. Molasky also said utilities will be included in the rent.

How construction will be paid for

Romero said the Nevada Housing Division and Clark County's Community Housing Fund would help finance construction. The Review-Journal noted that affordable-housing developers typically use government subsidies to help pay for projects, which lets them rent units at prices that otherwise would not cover the cost of building and operating the properties.

Why affordable housing is a pressing issue in Nevada

The Review-Journal reported that Nevada, with most of its population in the Las Vegas area, has long needed a bigger supply of affordable housing. The outlet described the region as tourism-dependent and heavy on lower-earning service-sector jobs.

Early last year, the Kenny Guinn Center for Policy Priorities reported that the state was dealing with a "severe housing affordability crisis," according to the Review-Journal. The center found that nearly half of Nevada's renters were "excessively cost-burdened" and that income growth had "lagged far behind housing costs."

News In Las Vegas has also covered a 390-unit affordable complex on Henderson's west side. More housing and development stories are collected in our real estate coverage.

What to watch next

• Ovation aims to break ground on the roughly $113 million project in three to six months, according to Molasky.
• Financing help is expected from the Nevada Housing Division and Clark County's Community Housing Fund, Romero said.
• The completed complex is planned to have 390 units for residents earning no more than 60 percent of the area median income, with utilities included in the rent.