Looking for Phase 1 Pre-Construction Pricing? The Las Vegas Pinnacle High Rise Condo's Your Choice

If you're looking for first phase preconstruction pricing on a Las Vegas high rise condo project, The Pinnacle's about as close as you can get. After touring their sales-office and looking at their materials, siteplans, and pricing structure, I'm sold that this is the number one opportunity in Las Vegas at this time.

The project is being marketed as a "Condo-Resort" - basically a resort you can live at, but with the abililty to have your unit rented out and professionally managed when you're not using it.

Most projects in town are stipulating you have to hold the unit a year before you can sell to discourage flipping. Other than the fact you can't assign the contract, there are no restrictions with the Pinnacle as to when you can sell, making this an extremely investor-friendly opportunity.

The physical location of the Pinnacle will be located right across the way from The Orleans off Tropicana and Cameron, about a mile and a half off the Strip. The building renderings look great and coupled with the amenity package, the strength of the development team, the building features, and the current pricing structure make this project a definite winner in my book.

655 square foot studios are being offered from the $300,000s. The square footage on the 1-bedrooms range from 957 - 1,173sqft with pricing starting in the $400,000s. 2-bedroom units are priced from the $600,000s for square footage measuring from 1,095 - 1,512 square feet. (There are also dual master and corner two bedroom units priced from the $800,000s). And finally, The Pinnacle also offers 2,256 square foot wrap-around 3 bedroom units starting from the $1,300,000s.

Folks, these are "friends and family" prices, almost certain to rise substantially as this project moves forward - and at this point, this is the ONLY "realistic" Phase 1 opportunity in Las Vegas.

To reserve a studio or one bedroom, you'll need a fully refundable $10,000 reservation check. That amount goes go $20,000 for a 2 or 3 bedroom unit and $30,000 for a combination unit. Then at contract time (most likely in about 2 months), you'll need to come up with 10% of the purchase price of your unit (with the reservation money applied to that amount). Finally, they'll ask for an additional 10% deposit in the 3rd quarter of 2006 - so at that time, you'll be into the project for 20% down total. Then you just wait until closing to complete the transaction which most likely will occur in the 2nd Quarter of 2009.

So there you have it. If you're reading this blog, I urge you to be one of the first to take action in reserving one of these units TODAY. Contact me and I'll have an entire information package sent out to you which will further detail the entire project.

Many of you contact me with questions asking when the next big opportunity will come along. Don't say I didn't tell you. Maybe Vegas really is so ready for this!

Announcing the Newest Last Vegas High Rise Condo Hotel Project: The Pinnacle

Meet the newest project on the Las Vegas high rise condo hotel scene, the Pinnacle. We've just received a nice letter from their marketing department announcing that they're the city's most compelling new luxury high rise managed condominium resort development, that everything you see and experience will dazzle you, and as you glance skyward, you'll see two magnificent towers connected on three separate levels by sky-high residential "bridge suites," the only of their kind in Las Vegas.

It all sounds excellent, but let's get down to the nitty-gritty: Is this project for real? Will it actually get built or is this another example of a colossal waste of time?

Based on the information we've received from a November 25th article in the Las Vegas Review Journal, this project looks financially sound and construction assured. The development is planned for the site of the old Falconi Honda and Acura dealership, owned by Angelo Falconi. Once the entitlements were in place for mixed-use condo development, the land value went from $6 million or $7 million to about $30 million. And with no debt service on the land, it became easy to secure mezzanine and construction financing, basically making the Pinnacle a solid project.

Quoting from their introductory letter:

Pinnacle's breathtaking three-acre pool and amenities deck will rise six stories above ground. Lush, garden-like flourishes will surround a spacious hibiscus-shaped swimming pool, plus lawns, cabanas, and a quarter-mile pathway for jogging, as well as "Energie," our fully-equipped fitness center, and "Touch," our luxurious full-service spa. As you glance skyward, you'll see two magnificent towers connected on three separate levels by sky-high residential "bridge suites," the only of their kind in Las Vegas.

Best of all, our Managed Condominium Resort Program provides the opportunity for you to place your residence in a rental program that also includes turnkey maintenance and upkeep, so that you can reap the benefits of ownership and not be burdened by the responsibilities. We offer nine different floor plans in each of our 35-story towers, with your choice of studio, 1, 2 and 3-bedroom residences, plus two-level penthouses. Each residence will be available with either traditional or contemporary furniture packages. Thanks to Pinnacle's prime location on the 'West Strip,' you'll enjoy stunning views of the neon night-scape in one direction, and colorful mountain sunsets in the other.

I'll be visiting representatives from this project to get pricing details, but for now, please contact me to get on their reservation list if you're interested in more details. Getting on a reservation list doesn't obligate you in any way to anything, but it's nice to be well-positioned if the pricing's right and you want to move forward.

Las Vegas High Rise Condo Mania Makes Sense

For those of you who may need an extra push to get moving forward on that Las Vegas high rise condo acquisition you've been putting off, please read this article from Rod Smith that appeared in yesterday's edition of the Las Vegas Review Journal. In it, he reinforces what we've been saying all along - do the numbers and make sure the projections make sense. There are 3 important items you need to take from this article:

1) Compared to pricing in other towns such as Manhattan and Miami for similar products, prices for Las Vegas high rise condos are very much in the ballpark.

2) Corporate America is making money and spending it just as fast. Many companies look to provide their executives with corporate retreats - and where better than Las Vegas? - which should make renting out your unit at a hefty sum extremely possible and likely.

3) The sometimes heavy down payments on these properties actually help you carry the unit to make it more profitable for you in the long run, with the goal being a 28.5% return on your money. (see the article for an explanation of how that number is calculated.)

Convinced yet? The next step is to get moving so fill out our inquiry form and we'll get you going in the right direction.

Conversion to Contracts Creates Opportunity at Juhl Downtown Las Vegas Condos

When projects go from the reservation to contract conversion stage, inevitably there's some degree of fall-out as prospective purchasers are asked to make a binding commitment to purchase a unit. While reservation fees are just about 100% refundable, once a contract is signed, you're expected to close on the deal without turning back.

The Juhl Las Vegas project is at that stage right now. And the good news is they now have studio availabilities at pricing below $300K! This is a huge opportunity for you to snag one of these units - as I have - before the inevitable price increase that will exist when they release their next set of units. There are only 3 available studios measuring 600 square feet with a balcony which if you do the math, is currently selling for approximately $476/sqft.

Juhl almost certainly will have to raise those prices since building at that price in this town is practically a steal. And in my opinion, Juhl is the best option to take advantage of the continuing downtown Las Vegas revitalization that many, including Mayor Goodman, are heavily promoting.

Juhl's happening folks - and they have the development team and track record to pull it off successfully. With groundbreaking and construction starting in the next few weeks, Juhl really is the best deal in town. So if you want to get into the Las Vegas high rise condo market for under $300,000, act now and contact me immediately as I'll guarantee these units will go very fast.

High Construction Costs Forcing Only the Strong High Rise Condo Projects to Survive

People get on the bandwagon of a sure thing, see a huge score on paper, then rush in emotionally with their hearts only to be crushed by disappointment. But enough of the Indianapolis Colts - let's talk about Las Vegas high rise condos.

With the demise of ICON, it may be surprising to hear that thousands of condo units in some 130 projects are still in various stages of planning, permitting, development and sales. And even though I'm betting ICON's disgruntled buyers will soon be back in the marketplace, the fact that construction costs in Las Vegas have gone through the roof cannot be discounted - and will probably cause other developers to abandon their Las Vegas high rise condo dreams in the upcoming months.

Here's an interesting, yet mostly unknown fact: once the city of Las Vegas provides approval for a zoning change that is needed for high rise development, the builder has a year to demonstrate "significant progress", which doesn't include pre-sales, deposits, or hard contract signings but rather construction related movement instead. The 12-month window is starting to close on some high rise projects due to higher than expected construction costs and a limited pool of dependable construction workers.

While developers projected their costs and profits when construction prices where significantly lower than they are today, their only reasonable option will be to cancel plans altogether to avoid tremendous losses. That's why you're seeing the newly advertised Spanish View Tower and the Vegas 888 project starting at more realistic prices of over $750K.

With construction costs high and qualified construction workers scarce, coupled with a major player like Related pulling out of ICON, it's completely understandable that high rise condo buyers are scared to pull the trigger on a purchase, especially with developers with less experience and lesser track records.

So if you're an investor looking to perhaps "flip" your unit at closing, you better make sure the price-points are such that someone will want to buy it with your profit added in. And if you're looking for a place to live here in Vegas, or maybe a second home, you better make sure you can carry the payments because it won't be easy. Either way, there are still projects in town that will work whatever your investment objective is. You just have to be careful, avoid the hype, and see the deal for what it is and what it can be in the future. I can help you with that, so contact me for an unbiased view of the market.

Cosmopolitan Las Vegas High Rise Condo Hotel Gets A Huge Financial Boost

Whew!... that was a close one. It's nice to be wrong every once in a while.

I had heard rumblings of a major announcement regarding the Cosmopolitan high rise condo hotel project. But what I thought would be bad news turned out to be a huge financial boost for the them instead. Developer Ian Bruce Eicher announced that his $2 billion dollar project received construction financing from Deutsche Bank in the amount of $415 million, which will allow Eicher to start building the project's underground elements, including a 3,900-space parking garage.

With approximately 1,600 of the project's 2,000 condos sold with pricing ranging from $400K to $1.7 million, the Cosmopolitan's sales volume has already reached over $1.2 billion. And with their "guaranteed maximum price" contract with the experienced Perini Building as their construction contractor, Cosmo can avoid the huge construction cost increases that have cancelled other high rise projects in town. In addition, the Grand Hyatt, which will manage the Cosmopolitan's rental program for unit owners, is also kicking in $50 million to the project's construction. With access to a customer base of well over 6 million, Grand Hyatt makes an excellent strategic partner for this project's overall success.

If a huge lender like Deutsche Bank is willing to commit that kind of money to a Las Vegas high rise condo project, what does that tell you about the overall Cosmopolitan development and the Las Vegas high rise condo market in general?

Exactly what we've been saying - you're still seeing a healthy market for projects with strong brands, great locations, and development teams with a track record of success. If Deutsche Bank supports this market, then it's good enough for me.

The Cosmopolitan's first phase, including 1,000 units, the retail space, casino and an 1,800-seat theater, should open around Sept. 1, 2008. The rest of the condominiums and hotel rooms should come on line by April 1, 2009.

You now have solid ground to stand on for purchasing a Cosmopolitan unit. Contact me and I'll tell you what's still available.

Still Another Las Vegas High Rise Condo in Jeopardy?

Remember the other day, I advised you to hold off purchasing a unit in ICON only to have the project cancelled soon afterwards?

Well, I'm afraid I have to issue the same warning with respect to the Cosmopolitan Las Vegas high rise condo hotel.

Nothing's official yet - at this point, it's just rumor... but from what I'm hearing unfortunately, it doesn't sound very good at this point.

Another Las Vegas High Rise Condo Project Bites the Dust

What does mother nature and the Las Vegas high rise condo market have in common?

Survival of the fittest. Only the strong survive.

And I must say the latest project to fall from grace is a shocker. Yesterday, The Related Cos. officially pulled the plug on their 500 unit Icon Las Vegas project leaving many in the real estate community (myself included) with dropped jaws in that this is really the first project to be cancelled which boasted a truely solid developer.

By underestimating the cost to build here in Vegas, they were faced with two options: fail to honor customers purchase agreements and raise reservation prices - or cancel the project outright. They made the right decision, albeit painful. So ICON's done and those who secured units in the project will have their monies refunded and another proposed Las Vegas high rise condo project bites the dust.

But here's what really bothers me about this announcement - in the same breath that the developers used to announce the cancellation, they maintain they're still moving forward with their $3.5 billion dollar Las Ramblas project located on Harmon Avenue! Logic dictates that if they can't make a seemingly "home-run" project in an excellent location right off the strip like ICON work, how can they expect people to buy into their Las Ramblas deal? Add to that the fact that Related also pulled out of the deal to develop 61 acres in downtown Las Vegas and you've got a company that's acting like they don't really believe they can succeed in Las Vegas.

The sad reality of the situation is there are only a couple of "real deals" in town. We've been saying that for awhile now and the market is slowly but surely justifying our position. And trust me that the ICON won't be the last to cancel. When a company like Related can't make a go of it in Las Vegas, you can't be blind to the reality that other high rise condo developers with lesser resources won't make it either, no matter how good the deal looks or whatever "phase" you bought in on. As a high rise unit purchaser, your ideal situation would be for your project to work while everyone else's fails.

Bet you wish you bought that Tower A residence at MGM now, huh? Or perhaps that unit in Turnberry? There's still time - act now, while there are still units left, because believe me, when everyone finally wakes up and figures out there aren't that many good options in town, those will be the first to go... and you'll probably make some decent money with it as well.

Hold Off on Purchasing an ICON High Rise Condo Unit

Breaking news, but from what I've heard, I don't like the sound of it. I'm expecting a major news announcment coming from the Related Cos, developers of the ICON Las Vegas condo project - and I don't think it's going to be good.

If you're considering buying a unit in ICON, I would advise holding off for a few days...

Journalism Aside, It's a Healthy Las Vegas High Rise Condo Market if You're in the Right Place

Welcome to 2006! Let's start the year off with this dozy published last Saturday from the New York Post entitled "Losing Las Vegas"

"Last week we reported on George Clooney's and Ivana Trump's troubled Las Vegas condo projects. And now it looks like those developments were just the tip of the iffy iceberg. According to the detailed market report released on PR Web on Thursday, several developments in Sin City have either cropped out or are in jeopardy including Michael Jordan's Aqua Blue... Meanwhile a staggering 23 projects, comprising more than 20,000 units are close to completion. Another 11 planned places are on respirators, and another six are already dead. Why do we care so much about Vegas? Experts say that it could become the first major city to experience a true real-estate bubble burst, which in turn, could fuel a panic across the nation."

Meanwhile, I came across this post as well at Planetizen.com:

"Las Vegas, NV, the fastest-growing regions in the nation, is facing big-city problems. Dependent on tourism, it faces a slowing economy. And the city is losing its unique character."

Of course, the above quote was published in September of 2001! - and we all know the growth Vegas has experienced since then. The point is people just love to write about gloom and doom, and we see it all the time in the high rise world with article after article about how not all highrises will be built, the market's not good, Vegas won't be able to absorb all these units, etc.

Talk to the Turnberry people about high rises not being built. They're quite good at it. Talk to the people who've already bought into the Residences at MGM and ask them if their units have appreciated much (you bet they have!). And talk to the planners of the $1.5 billion Project CityCenter and see if they think they'll be an absorption problem in the upcoming years.

It's amazing how so many "industry experts" point to projects that had no realistic chance of ever succeeding as proof of a bad high rise market. We all know Ivana never had a chance... and isn't George Clooney an actor? Didn't Michael Jordan play basketball?

When someone can show me proof that the MGM or Turnberry projects aren't good investments, then I'll believe all the negative journalistic spin with respect to the Las Vegas high rise condo market. In the meantime, I'm not placing any bets on a bubble burst in Vegas just yet.