Downtown Las Vegas VERGE Mid-Rise Condo Project Announces Groundbreaking

Yesterday, we wrote about how downtown Las Vegas real estate really represents your best option in Las Vegas right now for finding deals for that "buy low, sell high" investment strategy.

Today comes word that the downtown Las Vegas located VERGE project has officially announced their groundbreaking date set for December 12th, 2007. Groundbreaking is always good news since it gives a good indication that the project will be built and your investment into a condo there is for real.

In just over three months, VERGE has sold 75% of their development, with over $70 million in real estate sales. They've since developed more floor plans and more options to choose from, with units now ranging in price from $249,900 to over $1 million. On the low end, that's still an amazing pricepoint to get into in this market. The bad news is that there are only 70 left. As Micheal Corleone from the Godfather said: "this is an offer you can't refuse."

Want to go to the groundbreaking ceremony? Or maybe snag one of the remaining units at VERGE? Let me know and I'll put your name on the list.

Downtown Las Vegas Condos Continue to Be Great Bargain Plays

Unlike the national real estate market in general, Downtown Las Vegas seems to continually be the recipient of good news as the revitalization of the area progresses forward each and every day. We've been proponents of downtown for quite awhile now as the best part of Las Vegas to find real estate bargains in terms of high rise and mid rise condo options. At this point, it should be clear to everyone that downtown's happening - it's just a matter of time.

But of course there needs to be a reason behind all this optimism. So I'll constantly point to the already amazing success of the World Market Center and all it's neighboring construction projects as the catalyst for all the potential real estate wise. It should come as no surprise that yesterday's blurb in the Las Vegas Review Journal reported how the frame has now been topped off on another World Market Center building.

I recently attended a Rolls Royce party at the World Market Center and had a chance to see first hand all the development going on in that downtown Las Vegas area. When all eight buildings at the facility are complete, along with that entire Union Park being developed with the likes of medical facilities such as the Lou Ruvo Brain Institute, and the real possibility of a sports arena being built in the area, you're going to kick yourself for not acting on Las Vegas downtown real estate right now.

It's time for you to see it for yourself. Just show up... I'll bring the crystal ball.

Online Resource Available to Victims of California Wildfires

The devastation we see every day in the newspaper and on the TV news regarding the Southern California wildfires should make us all very greatful for the things in life we take for granted. Sure, we may be experiencing some downtimes in the Las Vegas real estate and high rise condo market right now, but that's nothing compared to what many people in California are presently enduring.

For all you California people who either subscribe to this blog or just read it on occasion, here's an online resource for the victims of the California wildfires just in case they've ever considering making the move to Las Vegas.

http://www.wildfirevictimrelocation.com/

We truly hope you find it helpful.

How Commercial Property can pay off your Las Vegas High Rise Condo

With the way the mortgage industry is these days, it's getting harder and harder to find solid investments. Couple that with the fact the stock market isn't much better than real estate, the question arises "Where should I SAFELY be investing my hard earned money TODAY?" Note the two bolded words: Safely and Today. Now consider those words when you hear the question: How can you turn one solid investment into two... without your pocketbook or bankroll even feeling it? Luckily for you there's a way to do just that. Here's how it works:

Say you have $600,000 that you're looking to invest. It could be in the form of cash, a bank CD, an IRA, whatever. There are commercial property sponsors out there that allow you access to grade "A" commercial real estate, including office buildings, retail centers, multifamily, etc. where you can purchase Tenant in Common (TIC) interests depending on how much money you need to invest. This is not timesharing! This is fee simple deeded real estate with all the benefits of traditional real estate ownership. What's great about TIC properties in general is that they're totally hassle free investments with absolutely no management issues on the investor's part. You'll never have to find a tenant, evict a tenant, do repairs, or anything else associated with investment rental property. The sponsor takes care of that all. You're left with a completely no-hassle investment in high class commercial real estate.

Now let's say you put that $600,000 into a TIC property that's paying you 6.5% interest contractually, even if the property is unrented (we'll go into that later). You've now bought a substantial real estate position which is earning you an interest payment each month in an appreciating asset. Then what you do is you put a deposit on a high rise condo unit. Let's just say you buy a unit at Juhl for $400.000 and put down 15% as an investor. Even in today's crazy market, you'll still find an investor loan at less than 6.5%. So what you do is you have the interest from your commercial purchase (which again is guaranteed and hassle-free) pay off your mortgage on your Las Vegas high rise condo unit. You'll never have to physically make a payment plus you'll be getting the spread difference from whatever your mortgage rate is and the 6.5%! So fast forward a few years and you'll not only be the owner of an appreciated commercial real estate asset, but you'll have your mortgage paid off and substantial equity in your condo - without even feeling it!!!

I'm surprised more investors with the means aren't already doing this. The key to all this is selecting the right TIC property sponsor. The Spectrus Group is one of my favorites due to its impressive and consistent record providing outstanding results to their investors. In 28 years of operation, they have never missed a payment to an investor and never have been late either. They provide investors with outstanding solid commercial property investments via their NNN Plus lease, which as mentioned previously, pays the investor on a contractual term regardless if the property is even rented or not. And if that's not enough, when it comes time to sell the property, 100% of the profits goes straight to the investor as well. It's low risk and you can do this today.

Cash flow..., appreciation over time... quality Class "A" commercial investment property. And if you do it right, a high rise condo to boot! What are you waiting for? Let's do this!

BloggerView: Michael Jabara - SUMMIT at Brian Head

Sometimes, condo projects are so interesting, we have to spotlight them even if they're not located physically in Las Vegas. Today's BloggerView is such a case. Below we feature Michael Jabara, the developer of the SUMMIT at Brian Head project and the President / CEO of the Altitude Development Corp. located right here in Las Vegas, Nevada. Here's how Michael responded to our questions:

Q: Tell us a little about your background and how you ended up developing SUMMIT at Brian Head?

I’ve had three main careers: technology, investment banking, and now real estate development. About three years ago, a partner and I successfully purchased and began developing a high rise project here in Las Vegas called Kallisto Las Vegas. We purchased the Scandia Family Fun Center site right near I-15 and designed a magnificent twin 50-story tower luxury condominium company, that was subsequently purchased by the Fisher Brothers, a fourth generation real estate family out of New York City. They are now putting that site together with additional acreage from the Fertittas and Station Casinos.

After the sale of that project, I was introduced to Brian Head, Utah and, having spent seven years in Lake Tahoe and seeing significant development occur at the end of the 90s and the early part of this decade, I was intrigued by the opportunities Brian Head presented. This town, which is really Las Vegas’ mountain playground, had not seen any major development for over 25 years. It had all the natural beauty and potential to become a modern, affluent, luxury mountain resort. When presented with our current site, I was struck by its location within the town limits, its positioning within the valley, and the ability to create a signature project that would have its own identity as a master-planned community, which is an important objective for me. Knowing that the Buyers base would come from Las Vegas and Las Vegans enjoy the master planned communities that they live in, I saw an opportunity to take this site and turn it into what we are now developing as SUMMIT at Brian Head.

Q: What is the current status of SUMMIT?

We have spent over two years in the entitlement and design/development process to completely create the look and feel of the project. We have completed all the design documentation and received all the approvals necessary to begin construction. We’ve selected a storied, General Contractor out of Cedar City, Utah named Carter Enterprises, Inc. with over 50 years of construction experience. Curtis Carter’s father founded this business and they have done major projects and public work throughout Southern Utah over an extraordinary period of time. Their work is unequaled in the area; they constructed the new airport terminals at Cedar City and they’re currently building the President’s Library at Southern Utah University. We’re very happy to have them as the General Contractor on this project.

We are currently selling units under contract, with Buyers. Our first phase is being offered at the highest location on the site with the best views, the best access, and we decided to start with this portion of the site as we thought it would be more attractive to early Buyers who have the vision to get into a project and would see the opportunity before others do. They have the vision to purchase at the early stages of the project at the lowest prices prior to the project being built-out and fully recognized.

Q: What are the unique features of your project that sets it apart from the other projects in town?

First and foremost, being the first master-planned project on a 42-acre site sets us apart from other projects that have been developed. There have been some fine developments that have gone up in the last 18 months, but they can be characterized as relatively constrained…they don’t have the scope, scale, and magnitude to create things such as our interior plaza and our grouping of buildings. The town of Brian Head even created a Special Improvement District to build the municipal infrastructure to support our project. We’re really the first master-planned resort development that is going to become a signature 454-residency community in the mountain town that is slated to become the next destination boomtown of the western United States.

In addition, we’ve tried to design to a standard and level that is at or above what other developers have either proposed or built in the last 18 months. We’ve designed some very unique interior and exterior appointments and overall, we think we’ve got the most family, pedestrian and Buyer-friendly project in the town of Brian Head.

Q: What is your opinion of the Las Vegas high rise condo market in general?

Currently, I think as a developer it’s very difficult to succeed in the Las Vegas marketplace today. That’s one of the reasons I personally made the decision not to reinvest in the Las Vegas metropolitan marketplace. I would rather invest it into a market that Las Vegans view as one of the premier destinations for their own recreational opportunities in the years to come. Although Las Vegas is going to grow, Brian Head is not; thus creating pressure and demand for the limited number of second-home buying opportunities that will exist.

Q: Condo or Condo/Hotel... what makes better sense and what are the good and bad points of each?

We have constructed this as a residential condominium development, but because it’s in a resort environment, can be used for nightly rental and is entitled for that use by the town’s Land Management Code. We expect to see a mix of people who are either going to use it exclusively for themselves or will put it into our signature rental program. There really isn’t the condo/hotel distinction in the Brian Head market.

Unlike Las Vegas, very few people will make this their primary residence. We won’t have the issue of people who want to live somewhere as a primary residence and have restrictions on overnight rentals such as Turnberry and Allure where you’re not allowed to rent on a nightly basis. In other condo-hotel projects, such as Pinnacle and City Center, there are residences that one is allowed to rent them. One common element, however, that we’re picking up from our Buyers is they expect to receive a high level of service and enjoy a turnkey “lock and leave” capability. Our Buyers are people who don’t want to worry about raking the leaves off of their property in the fall, or dealing with frozen pipes in the winter – they’re looking for the kind of maintenance-free lifestyle that they have come to love and enjoy.

Q: Who is the target market for SUMMIT? What attributes describe your typical buyer?

Certainly, Las Vegans are likely Buyers for this project. We also expect people from California, Utah, and Arizona. A typical Buyer is going to be someone that is looking to own in a resort location in a market that shows signs of future growth. These Buyers know that opportunities like this are not readily available as most mountain resorts are mature and fully priced.

SUMMIT at Brian Head is the first development that is going to move Brian Head from a strictly winter ski/snowboard area to a four-season destination resort. Many of the amenities we have planned for this project are geared toward spring, summer and fall. Although Brian Head Resort has tremendous winter and summer activities, we do believe that our Buyers intend to use their residences for weeks and months throughout the year.

Q: How are you building your brand and marketing to your target audience?

We have positioned our project as the premier signature resort in a location that is evolving from a very rustic mountain town to something that is going to resemble the other developed, affluent resorts in the western United States. Whether you’re talking about Telluride, Park City, Mammoth, or Lake Tahoe, those resorts all started out as rustic towns and have evolved into sophisticated, second-home communities for urban Buyers.

As for marketing, we will hold a series of events to introduce our project to the Las Vegas community. We have formed significant relationships with other entities such as outdoor luxury automobile manufacturers, and ski/snowboard retail stores as examples, and are looking building relationships with various adventure travel outfitters. This shows a concentration of activities that represent the brand and reality of what SUMMIT is going to be.

Q: What is the process at this point to reserve a unit at SUMMIT? What is available and at what prices?

Right now, we’ve moved beyond reservations and are writing contracts for our first release in Phase One. We have a limited number of 1-, 2-, and 3-bedrooms condominiums as well as townhouses remaining that are available at Phase One prices. Our prices are competitive and we believe they represent tremendous affordable value. In particular, the finishes, appointments, and exterior amenities really set SUMMIT at Brian Head apart from every other development in the town.

Q: Do you have any social events, open houses, etc. that showcase your project to the public?

As we said earlier, we’re planning a number of activities this fall for those people who are looking to purchase their mountain escape. We’ve held an open house every Thursday evening at our Las Vegas sales office which has resulted in numerous inquiries from potential Buyers and sales. In November, we will begin touring real estate agents, brokers, and their Buyers through our Design Showcase, an actual representation of one of the two bed-room residences that will be constructed during phase one. This will give them an opportunity to see exactly what the exterior/interior finishes are going to look like.

Q: Any advice, insights, etc. for high rise shoppers?

Purchasing a second home is a major decision. A lot has to do with the objective of the Buyer and in many cases, their family. One thing that we believe is unique about our Buyers is their expectations are high. Some expect to actively use their resort homes as a needed mountain escape from urban life. Others will take advantage of the transformation of Brian Head in order to offer their home to the public for rental. All look for significant value in what they are purchasing. In all cases, the advice I would offer to everyone is: do your homework!

When you look to see what’s available in a mountain resort, what is offered is relatively clear and distinct. What we’re offering today is a pre-development, pre-construction opportunity that, for a relatively small down payment, allow you as the Buyer to purchase in a all-season resort community in a town that is transforming itself significantly over the next several years. In November 2007, the ski resort is finishing construction of an Interconnect Ski Bridge and roughly $8.5 million worth of additional ski lifts. Next year, the resort is committed to developing a detachable quad chairlift to replace the existing lift for Chair #2 in order to improve the skier and snowboarder experience on the mountain.

The Resort has also introduced the concept of a ski village at the base of Giant Steps with retail, restaurants, and accommodations – a process that has repeated itself in every other major ski resort in the western U.S. Telluride, Park City, Breckenridge, Aspen, Mammoth, and Lake Tahoe are all areas that evolved from “no amenity”, rustic rural mountain towns to very sophisticated, affluent resorts nestled in pristine environments. Surrounded by six national parks and recreation areas (Cedar Breaks National Park, Bryce Canyon National Park, Grand Canyon National Park, Great Basin National Park, Zion Park National Park and the Lake Powell Recreation Area), our master-planned mountain resort is perfectly situated as an all-season mountain retreat and “base camp” for days and weeks of exploration. This is why buying what SUMMIT has to offer today makes a lot of sense.

Q: Describe SUMMIT at Brian Head in one sentence.

SUMMIT at Brian Head is the first master-planned, signature resort in Las Vegas’ favorite mountain play ground.

Wow! That was some interview! Thanks Michael so much for answering our questions. If anyone has any questions or would like further information on the SUMMIT at Brian Head condo project, please visit their website at www.brianheadcondos.com, call them at (702) 696-9001, or contact Michael via email here. Tell him you read his BloggerView!

Interested in making money with your blog? Visit BloggerViewer.com

$47 Million... Holy Cow!

Ivana Trump couldn't do it. Perhaps Steven Johnson can. Who is Steven Johnson, you may ask? He's an Arizona businessman who just paid $47 million dollars for the former Holy Cow Casino Cafe and Brewery site, on which Ivana once had plans of developing a Las Vegas high rise condo hotel tower. Now here's the kicker: after spending all that money, he's not sure what he's going to do with it!

"I haven't finalized my plans yet," Johnson said by phone. "I thought it was a good piece of property. At the moment there's really not much to say."

Johnson's been buying and selling plots in Las Vegas for over 20 years now, many of which were sites later turned into Walgreens drug stores. But that's the difference between Steven Johnson and me - I have a plan when I spend 47 DOLLARS! When the Elad Group bought the Frontier from Phil Ruffin for $35 million per acre a few months ago, that was considered the high-water mark for real estate on the Strip. But Johnson's purchase "Trumps" that at more than $50 million!

Steven Johnson's obviously been a tremendous success in business. My guess is we'll soon be hearing plans for another high rise condo hotel in Las Vegas - and this time, it just may be built on that Holy Cow ground.

In the meantime, I know of an interesting development at an already existing high rise condo you should know of if you're looking to purchase a Las Vegas high rise condo. Want to know what it is?

Wanna Become a Las Vegas High Rise Condo Expert?

On Friday, October 19th from 9:00am to noon, the Manhattanizing Initiative is presenting "High Rise 101 - Becoming an Expert" CE class designed to help agents who don't read this blog become more knowledgeable about vertical living in Las Vegas. The wide variety of topics will include:

• A history of Las Vegas high-rise developments
• The status on current development projects and condo-hotels
• Construction issues in the Las Vegas condo market
• The Buying Process, Commissions, and Effectively Dealing with Buyers Investing for REALTORS®
• The condo resale market
• How to profit from the second phase of Manhattanizing Las Vegas.

Paul Murad, author of "Manhattanizing Las Vegas - How to Profit from the Next Phase of Mega Growth" will be the instructor. The $79 registration fee includes a free copy of the newly released Second Edition of Manhattanizing Las Vegas book (a $25 value). The event will be held at the NCH Conference Room, 101 Convention Center Drive, 1st Floor.

Don't wait. Register here and get a good education of what's going on high rise wise. Or contact me for my take on the industry as well...

Excellent Article Reports on the Unbloody Streets of Las Vegas

I just came across this article today written by Doug French for Liberty Watch Magazine. It's a long read, but it's excellent and will explain a whole lot regarding not only Las Vegas high rises, but the entire Las Vegas real estate marketplace.

The point of the story? Baron Rothschild advised that one "should invest when there is blood in the streets." French explains exactly why it won’t be bloody in Las Vegas much longer. If this doesn't make you want to go out and buy a high rise condo in Las Vegas, nothing will.

Unique Investment Opportunities Exist for Las Vegas High Rise Condo Buyers

Does this scenario describe you? You're a high net worth individual and you just bought a high rise condo in Las Vegas as a reward for all those years of hard work more than anything else. A penthouse perhaps.. or maybe a unit at Project CityCenter's Harmon Residences. But now, you're still looking for yet another avenue to place the remainder of your investable monies for continued accruing wealth.

If that describes you, and you're an accredited investor, there's an extremely interesting situation developing that may work quite well for you. Here's the definition from the SEC website:

Defined by Rule 501 of Regulation D, an individual (i.e. non-corporate) "accredited investor" is either a natural person who has individual net worth, or joint net worth with the person's spouse, that exceeds $1 million at the time of the purchase OR a natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year.

Are you accredited? Are you interested in hearing more? Contact me if you'd like details...

Stratosphere Provides an Excellent Venue for Las Vegas High Rise Condo Overview

Isn't it amazing how we tend to take for granted things in our own backyards? Like the New Yorker who's never been to the Empire State Building, or the Californian that's never seen Disneyland, I had never been to the top of the Stratosphere here in Las Vegas, that is until today when I met one of my GO Zone clients there for lunch at the Top of the World restaurant.

And while couples surrounded us at neighboring tables enjoying their romantic lunches, all we could talk about was, of course, all the high rise condos going up in the Las Vegas valley. And I must tell you, there's no better way to understand what's going on in this town than by watching it all from 800 feet above. Besides the all window walls featuring 360 degree views, the floor actually slowly rotates so that within an hour or so, there isn't a part of Vegas you won't get a chance to see as you sit at your table enjoying a wonderful meal.

You'll see Turnberry Towers and wonder why they look so tall from the street. You'll see the progress of the almost completed Allure Tower, as well as Sky and Trump's high rises towering above the skyline. You'll see the beginnings of construction on the Fountainbleau project by the Riviera and the work beyond performed in building Steve Wynn's Encore and the Venetian's Palazzo. Looking southwest, you'll see Panorama Towers and Palms Place - totally sold out - rising right by their Palms Casino and Playboy building. You'll see tracts of land right off the strip such as Echelon and The Plaza, just waiting for development to start. Looking downtown, you'll see the progress of under construction projects such as Juhl and Streamline Tower as well as the recently completed SoHo Lofts and the Newport Lofts building. And so much more. You can literally spend hours just sitting there and taking in the views, and I know - we did it!.. all the while discussing each and every Las Vegas high rise condo project and what sets each one apart from the rest.

The view from atop the Stratosphere should be required viewing for each and every high rise condo client visiting Las Vegas. Ask your real estate agent to take you there and give you a visual overview of the market. You'll see for yourself how much development is happening, where the progress is being made, and ask yourself why you ever believed the news reports that the Las Vegas high rise condo market is dead.

Not from where I'm standing...

Take Your Blinders Off When Searching for Las Vegas High Rise Condos

A good friend and business associate of mine visited me in Las Vegas this week and wanted to find out more information on the Las Vegas high rise condo marketplace, so into my car we went. However, I made the mistake of first driving past the Project CityCenter construction site. That was all it took for him - he wanted a CityCenter high rise. Period. Nothing else would do.

Never mind the fact that the Harmon Residences were way out of his league pricewise, or that the Mandarin Oriental is sold out. He wanted CityCenter. I know this guy and let me tell you, based on his finances and the way he lives his life, even purchasing a unit in the Veer Towers or Vdara would hurt - especially when his wife found out! But here's the point: every other development we saw afterwards couldn't match the extravagance CityCenter offered in his eyes. We all know there are a number of other high rise condo options in town - but you have to look based on what's right for YOU and not fall in love with one particular project just because it's all the rage. Take those blinders off!

And that's the moral of today's story. The fact of the matter is, what works for someone may not work for others. Some buyers just aren't Trump people. The Cosmopolitan project may appeal to a certain buyer in a way Turnberry may not. SpaLofts may look great to one individual, while another investor may see Juhl in Downtown Las Vegas as an investment more in congruence to his lifestyle. Downtown vs. The Strip... Off the Strip vs On the Strip... Condo vs. Condo Hotel... it's all different for everyone and none is more right or more wrong as long as you stick to what you can afford and be consistent with the way you live your life.

So knowing my friend as well as I do, I just knew CityCenter was wrong for him. It would have been a nice commission, but after his blinders came off, he knew I had a point. Oh, he's still interested in a high rise condo in this amazing city of ours, but next time, he's bringing his wife and we'll all go out with a more realistic mindset.

What's your high rise mindset? Is CityCenter for you?