Everyone knew it was going to happen. It was just a matter of time. News out of the Las Vegas high rise condo world shows the buyers of the cancelled ICON high rise project are suing the project developer for breaking purchase agreements. And once again, they'll be only one winner: the lawyers.
ICON high rise purchasers are upset on two levels - the obvious one is that the unit they purchased will not get built. But an somewhat overlooked point is the opportunity cost they missed regarding other successful projects that they could have bought into while their money was sitting there at ICON doing nothing. If only they bought into Sky... or MGM... or Turnberry... not only would they be seeing continual construction progress, but most likely they'd be seeing the same appreciation buyers of those successful projects have already seen, and continue to see every day.
You can see the developer's point too. Rather than build a building they'd take a beating on due to rising construction costs, The Related Group figured it would be cheaper for them to kill the project and roll the dice with a class-action lawsuit they knew would eventually come their way. Related paid approximately $15 million for the land and rumor has it the 3-acre site is currently in escrow for $30 million. That should give them plenty of money to pay their court fees. It's hard to feel sorry for a company that makes $15 million on a failed project.
Lawsuits are everywhere these days, and they take forever to settle. Here's my advice to buyers of ICON units: get back on the horse. The race is far from over and the high rise market in Las Vegas is still in it's infancy. There's incredible opportunity out there in the right project. (HINT: if you liked ICON, you'll love ONE - and I'm pretty sure that project won't be canceled)
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