Who's Buying High Rises Anyway?

The other day, I had a conference call with the people over at PriceWaterhouse in New York who have been contracted by MGM to provide market data regarding the development of the "City Center" project on the strip in Las Vegas. They're in the process of contacting industry experts and getting their take on what works and what doesn't in this Las Vegas high rise condo hotel market.

In our conversation, I was asked a very interesting question: "Who's buying high rises anyway?". The answer may surprise you. Technically, no one - yet. The high rise market is so new here in Vegas, no one has actually closed on a property yet. Sure, reservations are aplenty and many have gone to hard contract, but since most projects won't be done for years, we really don't know what the future holds as far as who'll actually follow through with the purchase. Where else can you tie up a $600K property with a small investment and not have to close for 2 years? And that's what's creating this tremendous opportunity for owner-occupants and investors alike.

MGM Mirage is planning to develop the multibillion-dollar “urban metropolis” on the Strip between the Bellagio and the Monte Carlo. The 18 million square foot first-phase of the 66-acre development calls for a 4,000 room hotel and casino, three 400 room boutique hotels, 1,650 luxury condominium-hotel units and 550,000 square feet of retail, dining and entertainment space. An interest list is currently being formed.

Besides being flattered to have been chosen to participate in their survey, it furthered the notion in my mind that MGM really knows what they're doing, and justifies my tauting of their projects in town, such as The Residences as well as their association with the developers of Turnberry. As you well know, I've consistently ranked The Residences and Turnberry Towers as Vegas's best high rise project opportunities. Now, I'm sure I'll be recommending City Center as that project draws closer to reality.

So who should be buying these high rise units? YOU should. Despite all the hype, the market is still in its infancy and opportunity abounds - if you're in the right project. And that's why I've said time and time again that you need to align yourself with a knowledgeble industry expert to take advantages of what the Las Vegas high rise condo hotel market has to offer.