by admin on February 23, 2009
This seems to be a recurring theme for hotel and condominium projects in Las Vegas (and elsewhere, I’m sure): Trouble getting financing. “Necessity is the mother of strange bedfellows” That certainly applies here, since MGM Mirage is in talks with Deutsche bank who happens to own the adjacent property next to CityCenter, the Cosmopolitan. In another twist of the coincidence, Deutsche Bank is looking for someone to operate the Cosmo once it is finished. It’s estimated that MGM Mirage will need another billion dollars to finish the project, which is scheduled to open in October of this year. This is the latest problem to plague CityCenter (see my prior post, CityCenter losses some condos). [click to continue…]
by admin on February 22, 2009
One thing is for certain, you have to play the odds in Las Vegas. Last month, it was reported that the Turnberry’s Fontainebleau was ahead of the curve in financing. With so many projects falling into limbo half completed, unable to get financing, Fontainebleau had reported that they would be able to complete the project.
Now the future of the project is not looking as rosy. An article in the Las Vegas Sun is stating that Fontainebleau may have trouble making payments. The recent downturn in the economy coupled with the location of the project has contributed to the reduced rating by S&P. Even though Fontainebleau will have roughly 1,000 condos for sale, the expected revenue will not be enough.
So will Fontainebleau beat the odds?
by admin on February 11, 2009
Luxe Lofts, a boutique loft community of just 83 luxury lofts in southwest Las Vegas is nearing completion. At time when many construction projects are stalled for lack of financing (see Manhattan West), Luxe Lofts is nearly finished. Another unique characteristic of Luxe, they are not pre-selling any units until the project is finished.
I asked the sales broker about the lack of pre-construction sales and she stated that the developer wanted people to be able to see what they were purchasing. Definitely an interesting marketing tactic, although other developers have done it. The Avenue, another boutique upscale [click to continue…]
by admin on January 30, 2009
As hard as it is to imagine, until 2007 Las Vegas did not have a Five Star rated hotel! That changed when the Tower Suites at Wynn Las Vegas was awarded the honor from the Mobil Travel Guide. Another hotel has just made the list, the Sky Lofts at MGM Grand (not to be confused with the Sky Las Vegas high rise).
There has been some confusion about the Sky Lofts and the Signature Condos at MGM. The Sky Lofts are located on the 29th floor of the MGM Grand Hotel on Las Vegas Boulevard. The Signature towers are located behind the MGM Grand and the condo-hotel units are available for sale.
by admin on January 27, 2009
The Monterey condos community located in the Las Vegas Country Club was back in the news last week. A cleverly disguised article (ad) in the RJ announced “special pricing” over the weekend. The article went on to tout the various features of the community which are actually very nice. The community has five pools and spas, a fitness center, 24 hour gated security, in other words, all of the extras that you would expect from an upscale condominium community.
So why should you choose Monterey over the dozens of other Las Vegas condo communities? Well, that depends on your reason for buying one. If you work on the strip or are [click to continue…]
by admin on January 20, 2009
In a town of long odds, completing a construction project isn’t a safe bet. Several projects around the valley have stalled or went bankrupt due to the inability to gain financing. However, it looks like the Fontainebleau Resorts will not be one of them. The resort is planned to open in October of this year.
The secret to their success was the $4 billion in financing they received in 2007, before the credit market crisis. The company is a collaboration former Mandalay Resort Group executives and Turnberry Associates.
The Fontainebleau will feature 3,815 rooms, as many as 1,000 condo-hotel units, 28 restaurants and lounges, a 60,000-square-foot spa, and at least four outdoor pools plus a topiary garden and a bar with an open kitchen. There will also be Champagne and caviar service poolside.
Turnberry Associates have ridden out tough real estate cycles before. Their list of high rise condos in Las Vegas include Turnberry Place, Turnberry Towers and Signature at the MGM Grand.
by admin on January 7, 2009
CityCenter, long thought to be the one bullet proof project in Las Vegas announced that one of the component towers, the Harmon Hotel & Spa will not have any condominiums as originally planned.
Citycenter CEO Robert Baldwin said stated that by removing the condos it removed “the need for substantial redesign…resulting from contractor construction errors.”
That is itself is interesting, given the size of the project, the cost and the fact that CityCenter will be applying for LEED certification to make it the largest green project in the world. Another reason CityCenter needs the LEED certification is of course, money. They are one of just a handful of projects grandfathered into the original Nevada green construction tax break. Coincidentally, the Harmon condos were the last units released for sale. According to MGM Mirage (co-developer of the project with Infinity World Development Corp.) only 88 of the 200 condos had been pre-sold. Those buyers were offered condos in the other buildings and if declined that option, are being given a refund of their deposits. CityCenter is scheduled to open in December 2009. [click to continue…]
by admin on January 3, 2009
Manhattan West has stalled, suspending construction until new financing can be secured. It’s kind of ironic, considering what the developer, Alex Edelstein stated in the press last year to another developer when his project was cancelled.
Gemstone Development who developed the Manhattan condos community on south Las Vegas boulevard has lost funding for the $350 million dollar project and is uncertain when new financing will (can) be secured, according to their CEO Alex Edelstein. [click to continue…]
by admin on December 12, 2008
Mira Villa condos in Summerlin had an unsure future. The developer, Westmark Homes went into bankruptcy and the future of their current projects were in limbo. Last month a bankruptcy judge approved the completion of construction. real estate approved by bankruptcy judge to complete construction. The decision includes the completion of the 113 units, plus $37 million in post bankruptcy financing and $10 million in mechanics’ liens. Construction on the project had been halted for nine months. [click to continue…]
by admin on December 10, 2008
An article in the Las Vegas Review Journal stated that home and condo sales are up, way up as a matter of fact. Strangely you won’t see much else in the media about how robust the Las Vegas condo market has become this year. According to statistics provided by the Greater Association of Las Vegas Realtors, 392 condos and townhomes were sold in the month of November. The median price sales price was $90,750, that’s down nearly 50 percent from a year ago. Statistics are based on resale condos only, excluding any private sales not involving a Realtor. [click to continue…]
