Over the past 18 months, several high rise projects have gone back to the banks financing them. Newport Lofts, the Cosmopolitan, Turnberry Towers and Mira Villa have all been taken over by the banks due to bankruptcy. Two more projects can be added to that list, Streamline Tower in downtown Las Vegas filed for Chapter 11 bankruptcy protection this past Wednesday and One Las Vegas has officially been taken over by the lender, Corus Bank of Chicago. Corus Bank also financed $125 million for Streamline Tower.
Only 10% of Streamline’s 275 units are sold. The rest are being actively sold as the reorganization plan works through the courts.
While bad news for the initial investors, this is great news for Las Vegas high rise condo buyers. One Las Vegas condos are being offered by Corus at approximately half of what they sold for new. Other projects have felt the pinch of buyers dropping out of escrow. Last month the Allure had an auction to sell 10 condos that fell out of escrow. They wouldn’t release the specific results of the auction, other than some minimum bides were not met.
Despite the lackluster result of the auction, high rise condos are selling. According to a report by Frank Nason of Residential Resources, high rise condos made up 4% of the properties sold in March. A total of 98 condos were sold. So where does this leave market? Well, if you’re a bargain hunter that is looking for a high rise, there hasn’t been a better time to buy.
Super low interest rates combined with a large supply of units means its a buyer’s market. If you’re thinking of buying a high rise condo, call me at 702-493-8033.
{ 2 comments… read them below or add one }
Denver Relocation 05.02.09 at 3:24 pm
Are more projects headed toward foreclosure or is this about the end of them?
Denver has had a couple but not as many. I would think that would create more opportunity on the upside in Las Vegas for buyers.
admin 05.02.09 at 4:25 pm
Its a huge opportunity if you are a buyer. There is still a demand for high rises, but now the price roughly half of what it was a few year ago when these projects were announced.