The Watermark, a $50 million mixed-use complex on Water Street in downtown Henderson, has been acquired by Next Wave Investors following foreclosure, with apartments now over 70% leased but commercial space still seeking tenants
The Watermark, a major mixed-use development in downtown Henderson, has entered a new chapter after facing foreclosure and being acquired by Southern California-based Next Wave Investors. The seven-story complex, located at 215 S. Water St., was completed in 2025 after years of construction delays, legal disputes, and financial challenges.
Originally envisioned as a catalyst for the revitalization of the Water Street corridor, The Watermark was the largest real estate project in downtown Henderson in recent years, with a reported development cost of approximately $50 million. The project features 151 apartments and more than 30,000 square feet of commercial space, including ground-floor retail and second-floor offices, as well as amenities such as a rooftop pool, fitness center, and resident lounge.
Development Timeline and Financial Struggles
The Watermark’s journey began in 2020 when its developers, Strada Development Group, acquired the site from the City of Henderson’s Redevelopment Agency. Construction officially broke ground in spring 2021, backed by a $37.5 million loan from New York-based Acres Capital. The project was intended to meet growing demand for rental housing and commercial activity in the area.
However, by late 2023, construction stalled due to rising costs and supply chain disruptions, with overall expenses increasing by more than 20 percent. In early 2024, lead contractor Gillett Construction filed a lawsuit against the developers, alleging more than $11 million in unpaid work. Acres Capital also sued the developers, seeking to appoint a receiver after loan defaults. The developers filed for Chapter 11 bankruptcy in June 2024, citing disputes with the contractor and delays in securing permits.
Despite securing nearly $28 million in additional financing from Acres Capital in early 2025, which allowed construction to resume and eventually finish, the developers struggled to lease the commercial space and were unable to sell or refinance the property to repay their lender. By late April 2026, The Watermark entered foreclosure with more than $41.5 million in unpaid debt and costs, according to Clark County records.
Next Wave Investors Takes Over
Following the foreclosure process, Next Wave Investors acquired The Watermark in spring 2026. The acquisition price was not disclosed, and the transaction was structured through a foreclosure sale. Next Wave, based in San Clemente, California, manages a portfolio of over 1,800 residential units across the Western U.S. and has completed more than $500 million in acquisitions, according to the company.
David Sloan, co-founder of Next Wave, said the group was attracted to The Watermark’s modern industrial apartment design and its location across from the America First Center ice rink. As of June 2026, the apartment portion of the complex is just over 70 percent leased, while the commercial spaces remain vacant but have drawn interest from prospective tenants. Sloan noted that the company is actively seeking office and food-and-beverage tenants to fill the retail and office components.
Impact on Downtown Henderson
The Watermark’s completion and subsequent change in ownership mark a significant moment for downtown Henderson’s ongoing redevelopment. The property stands as the tallest building on Water Street and is surrounded by a growing mix of bars, restaurants, coffee shops, and entertainment venues. City officials had previously highlighted the project as a key part of efforts to transform the area into a more vibrant destination for both residents and visitors.
While the residential units are seeing steady leasing activity, the commercial component’s future will depend on the pace of tenant signings and broader trends in the local real estate market. The Watermark’s new ownership aims to stabilize the property and contribute to the continued evolution of downtown Henderson as a live-work-play neighborhood.
What Residents and Visitors Should Know
The Watermark is now open for residential leasing, with amenities including a rooftop pool, fitness center, and lounge. Commercial spaces are available for lease, targeting office users and food-and-beverage operators. The property’s location on Water Street places it within walking distance of downtown Henderson’s growing lineup of dining and entertainment options. As the area continues to develop, The Watermark is expected to play a role in shaping the neighborhood’s future.
