Square Footage Price a Good Indicator of a Successful Las Vegas High Rise Condo Project

Jennifer Robinson's article in today's Las Vegas Review Journal couldn't have hit the nail on the head any better. In it, she discusses how real estate prices in Southern Nevada are bucking the national trend and how industry experts are even predicting a housing shortage come fall 2007. Logically, the article makes a whole lot of sense. Because Las Vegas is so unique and is such a desireable destination for so many people globally - a fact that will never change - it insulates itself from national trends.

While the article goes on to address a number of housing price statistics, I want you to take one thing from this article regarding Las Vegas high rise condos. Larry Murphy, president of SalesTraq, states the following:

"The starting price per square foot of the city's mid-rise and high-rise sector has jumped significantly, from $342 in the first quarter of 2004 to $596 in the third quarter...If you see a project with base prices under $500 (per square foot), that's a big red flag. At those prices, they won't get built."

That's not me saying that - (although I've been saying that for awhile). That's a respected Las Vegas industry expert who's president of perhaps the most accurate website on new project developments out there. No one should be shocked anymore at the square footage pricing of some of these high rises here in Las Vegas. The average square footage pricing of a high rise condo project should be a major clue as to whether the project will realistically work or not.

What does that mean? It means the high rise condo market in Las Vegas is not cheap and you need to be prepared to spend if you're interested in purchasing a high rise condo here. If you're looking to SAVE money, run for the hills - the Las Vegas high rise condo market is not for you. If you're looking to MAKE money, well, that's a whole different story.

Watch Your Las Vegas High Rise Condo Get Built

Webcam's have now invaded the real estate domain. DestinationWebcam.com is now using the technology to promote high rise developments and monitor construction progress by allowing visitors from around the world web-cam access on their browsers.

They've entered the Las Vegas market in association with the Juhl Las Vegas project so purchasers of Juhl units can now not only see construction progress on the project, but basically explore the entire neighboring downtown Las Vegas area in real time.

Check out the views, zoom in, do a 360 degree panorama, save photos, or email them to a friend. This is a really cool tool, so view the Juhl Webcam now. And remember how much we like the Juhl project - so contact me to reserve a unit as you watch it get built!

Residences Second Las Vegas High Rise Condo Tower Ready for Move-Ins

2 down, 1 to go. The first tower of the MGM Grand's Residences high rise condo project opened a few months ago. Now comes word that the second 40-story tower will be completed by the end of this month. The third and final tower will top off later this month as well, with a completion date for that tower estimated to be in the mid-2007 timeframe.

Inventory's scarce at the Residences (there's currently less than 100 units still available) and with good reason - they're the best project in town. With all the news of project cancellings, political haggling, legal battles, and delayed construction schedules, doesn't it make sense to get into something solid with no hassles where you can sleep at night knowing you made the right Las Vegas high rise condo purchase decision?

MGM's proven it over and over again. Their reputation speaks for itself and they've delivered the results they promised on their first two towers. Take my advice and get in on the third while you still have a chance. You'll thank me when you're drinking your cappaccino on your balcony as you read the newspaper stories about all the other high rise projects that have failed.

Centex Pulls Plug on Short-Lived Urban Village Las Vegas Condo Project

Don't let the sign in the picture fool you.

It looks like another mixed-use development in Las Vegas has seen better days. Urban Village, a 50-acre $1 billion dollar project proposed by Centex Destination Properties, has stopped sales and closed their sales office. The project had 75 reservations in at their first phase, out of 300 total units priced between $360,000 to $760,000. I bet I know 75 people who don't read this blog, because as mentioned time and time again, it doesn't matter what phase you get into with a project that won't get built - you're going to come out a loser if the project fundamentals and development backgrounds don't make sense.

This project never really got off the ground in the first place and certainly you'll see more projects cancelled in the near future. What's interesting is that news such as this isn't necessarily bad. In fact, as projects fall by the wayside and every other project in town fails except yours, then you're looking great since you'll own a successful asset in a market of high demand and low supply.

Urban Village put out a very nice press release explaining why the project was being discontinued. But the bottom line is people don't fall for time delays and publicity stunts that inject superficial interest in any project, such as when then-owner Philippe Pageau Goyette acquired the land and in April 2005, had led a mile-long convoy of construction trucks and equipment to the construction site to make it seem like construction was starting on the project, which was scheduled to begin in June, 2005. That may work in France, but after delays and delays - and as CSI reminds us every week: "we won't get fooled again". He then sold the land to Centex, who paid approximately $38 million for 15 acres and an option to buy the rest.

And speaking of being fooled again, Pageau Goyette is also the developer of Club Renaissance, which has also closed it's doors and has yet to begin construction after a similar groundbreaking event. He sold that land to Centex as well.

If only we all had a Centex in our life to bail us out of failed projects, and making us rich in the process!

Analysts are Talking about Las Vegas High Rise Condos

When Steve Wynnn opened Wynn Las Vegas 17 months ago, the first new casino/resort in Las Vegas in almost 5 years, it spurred announcements from a variety of other potential strip projects, including high rise condos and hotels. So how's everyone doing? Read this article to find out. Here's a quick summary:

• Project CityCenter - "A transformational project for Las Vegas."
• Fontainebleau - "A quality developer with experience in this marketplace. Looking forward to seeing (former Mandalay Resort Group President) Glenn (Schaeffer) again."
• Echelon Place - "Many investors underestimate the brilliance and execution capability of Boyd Gaming. Management talent will get the job done, and the city needs a midmarket project of this magnitude."
• MAXIM - "Highly speculative as currently planned given the site configuration."
• Cosmopolitan - "Executive turnover in previous months suggests there may be some difficulties, but the project is likely to move forward."
• Olympia Gaming - "There needs to be a little more time for that part of the valley to comfortably absorb this supply."
• Trump International - "This will be a success for both Trump and Las Vegas."
• New Frontier - "The timing is uncertain. Will Trump enter the picture at some point?"
• Palazzo - "Las Vegas Sands needs this additional room capacity. It's clearly moving as planned; sufficient capital and a great location."
• Encore - "The Encore is an important second tower for Wynn Resorts that will enable the company to leverage its cost structure."
• Palms Place - "A solid residential location."
• W Hotel - "While we believe the W project is experiencing delays, we do believe that it will ultimately be built, unlike other notable projects."
• Edge East - "A great location."
• Harrah's Strip - "Harrah's (Entertainment) has the ability to successfully integrate its Strip properties and it will represent a powerful alternative for consumers."

Never heard of some of these? Keeping reading this blog. As long as they're good, you will....

Loan Officers Looking Closely at Quality in Funding Las Vegas High Rise Condo Projects

Yesterday's article in the Las Vegas Review Journal talked about how the failures of the Las Vegas high rise condo market is causing lenders to grow cautious and how financing high rise condo projects isn't as easy as it once was. Well... maybe for the Club Renaissance projects of the world. But quality projects such as Sky, One, Streamline, Juhl, Turnberry, and the Residences to name a few all seem to be doing fine.

Everyone always talks about how there are 100 or so projects in the works and that the market can't absorb all those units and how not all of them will be built. Yada.. yada.. yada... We all know that. The simple truth is that it doesn't take a rocket scientist to go to the planning board and get approval for a high rise project. Most times, I think you just have to be breathing! But getting the project financed, sold, and completed is certainly a different story. And in this town, at this time, you MUST go with quality or you'll find yourself in Ivana land - which is not the place you want to be.

Here's an interesting (and insightful) quote taken from Manhattan Las Vegas developer Alex Edelstein:

"People who generalize about the Las Vegas market and see a glut of condos are not getting a good picture of what's going on... it's a bit misleading. Of the 3,087 units for sale, nearly 70 percent are priced under $250,000, which probably means they're apartment conversions. Another 16 percent are priced above $500,000, suggesting they're high-rise luxury units... That leaves only 460 condos in the entire valley in the sweet spot between $250,000 and $500,000"

Are you in that sweet spot yet? Because as Calmerica loan officer Bob Charles says,

"My thinking is that it will take slightly longer to sell out the projects that actually make it to completion, but I doubt there will be any losers in the bunch that does finish."

Lawsuits Begin Against Spanish View Tower High Rise Condo Project

The lack of construction progress over at the Spanish View Tower project is starting to hit home hard as a unit holder has filed a lawsuit against the development demanding their money back and alleging that Spanish View has missed significant construction deadlines. The project broke ground on its 215 and Buffalo location quite some time ago, but by all indications, construction has come to a grinding halt, causing unit holders to wonder what's to become of their significant downpayments.

Stories like this are what's giving the Las Vegas high rise condo market a black eye. Spanish View claims no construction deadlines have been missed yet and the project will be ready by August 2007. I wonder what odds they're getting at the casino sportsbooks on that one!

I'll bet Turnberry and MGM are completing their projects on time. Once again... the success of your high rise condo project will be a direct correllation to the strength of the developer. Just because Spanish View has problems, trust me in that they won't take every project down with them. There are still MANY good buys in this town for those who do their developer homework.

East Tower at Turnberry High Rise Condo to Open This Spring

After the recent top-off of the East tower's 45th floor at the Las Vegas Turnberry Towers high rise condo project, Turnberry officials announced the project will be ready for move-ins come spring.

The project's west tower should be ready about a year after that. When completed, the 10-acre, 2 45-story high rise tower project will feature 636 one to three bedroom residences, designed to appeal to both primary and second-home purchasers.

If you were lucky enough (and smart enough) to buy into this project, you'll soon be reaping the rewards of your purchase as we've mentioned time and time again how Turnberry has set the standard for high rise living here in Vegas.

In addition to unit ownership, all buyers receive a 2-year membership into the Stirling Club, Turnberry's exclusive 80,000 square foot private club, featuring casual and fine dining, a 30,000 square foot European anti-aging spa, a fitness center with a virtual reality system, a Pilates studio, beauty salon, jacuzzis, saunas, and steam baths, and an indoor lap pool. But that's not all: the Stirling Club also offers members a nightclub lounge with live jazz music, piano lounge, cigar room, clay tennis courts and an outdoor mosaic pool. I've been to the Stirling Club - and trust me when I tell you this club rivals anything the finest Strip resorts offer their top-notch clients that come into town.

So the question becomes: Why aren't YOU one of the people ready to move in next year? Perhaps a tour of a 1,658 square foot fully furnished model suite would help? Let me know...