Las Vegas Condos - Las Vegas Condominiums » condo market news

Banks Taking Over High Rise Projects

admin — Fri, 01 May 2009 23:00:08 +0000

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.

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CityCenter loses some Condos

admin — Wed, 07 Jan 2009 20:39:36 +0000

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.

Other Condo News

Another high rise project is back on track after the original developer defaulted on the construction loan. The Cosmopolitan went into foreclosure in January of 2008, putting the project into limbo. Developer Ian Bruce Eichner defaulted on a $760 million construction loan and Deutsche bank began foreclosure proceedings. In an unexpected move, Nevada Property One, LLC (an affiliate of Deutsche Bank) bought the property and retained the original contractor to complete the project last September. Construction is ongoing and the project is due for completion in 2010.

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Manhattan West’s Future is Uncertain

admin — Sat, 03 Jan 2009 23:57:01 +0000

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.

Manhattan West planned for 12 buildings, including a nine story tower that has already been topped off and was a mixed use project. The company is trying to finish the project for buyers that have already purchased condos and are still under contract for them. Another hurdle for Gemstone to complete the project is allegedly improperly built sections of the project need to be rebuild. That combined with the increased construction costs make the project’s future uncertain.

Hopefully they will be able to secure new funding and complete the project. Manhattan West had some of the most unique floorplans available in Las Vegas. Currently their sales center is closed, but I’m guessing it will be re-opened if new financing is secured.

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Mira Villa going Forward

admin — Sat, 13 Dec 2008 03:44:12 +0000

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.

The project deadline is Januargy 6, 2009 at which time the building premits will expire. The new general contractor for Mira Villa is Isaac Construction.

Mira Villa is located adjacent to the Badland golf course in the Canyons village in Summerlin.

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Condo Sales Up in Las Vegas in November

admin — Thu, 11 Dec 2008 06:16:12 +0000

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.

Foreclosures are having an impact on the market, adding inventory and driving down prices. If you are thinking about buying a condominium, call me at 702-493-8033. I’ll email you the latest condo listings that match your criteria. Thanks for reading the Las Vegas condos blog.

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