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Thursday, March 29, 2007

Top Ten Reasons Why Your High Rise Won't Get Built

The number one question I always get from people interested in the Las Vegas high rise condo market is "how can I be sure the project will get built?" And rightly so, since what good is your Phase 1 reservation in a project that won't happen? - And with over 100 projects slated in the Las Vegas high rise landscape, you can be sure many of them won't happen. So how do you weed out the hopefuls from the real thing? Read these top ten signs and see how many you recognize:

10) The developer overly reiterates their "committment" to the Las Vegas high rise marketplace. That's nice to hear every once in a while, but if that's a project's "selling platform", you better be concerned. I'd rather have a developer committed to finishing the actual project instead.

Real world example: The Related Group committed, not once, not twice, but three times to failed Las Vegas projects and amazingly STILL maintain they're committed to the area. Care to go for number 4? Not me...

9) The owners of a high rise project are suing the owners of another. In the real world, legal problems don't go away overnight. In fact, lawyers like long, drawn out battles. That's why legal disputes take so long to settle... and as we wait for the lawsuit to go away, guess what never happens? That's right - the actual project. A legal battle, no matter what the basis, is a sure sign that you better be looking at another high rise project.

Real world example: The Majestic and the ICON were suing each other about shadows obstructing the sun on each other's buildings. Those projects are way gone, but I hear the lawsuit's are still proceeding.

8) The project uses a sexual connotation as the tagline on their marketing materials. Sure, this is Las Vegas, and what happens here stays here, but that's fine for the party scene. When I'm asked to invest $800,000 into a real estate investment, I want a little more substance then just a cool slogan.

Real world example: The tagline for the failed IVANA Project was "In Vegas, Size Matters". Seriously... and they expected sales?

7) A celebrity attaches their name to the project. This is perhaps one of the biggest deal killers of a high rise project out there. Think about the developer's reasoning here - the project's not good in it's own right, they know it, they know the American public is relatively dumb and idolizes celebrities, so they add the "star" to the project in hopes of selling something they'd have no business selling in the first place.

Real world example: George Clooney and Michael Jordan come to mind.

6) No one answers the phone at the sales office. When you continue to get an answering machine message, whether you call for information in the morning, afternoon, or evening - every single day - you can be sure something's up with the project. They're probably not answering because all the sales agents have been let go, there's no more money to pay a receptionist, but the developer still has hopes of continuing the project when a "big money guy" shows up. Problem is, they won't and your project's dead.

Real world example: I think if you call the Club Renaissance project, you'll still get a voice message telling you they're the next greatest downtown project out there, even though the project has been dead for months.

5) 6 months or more have passed since your reservation and nothing has happened. No groundbreaking, no contact from the developer, no calls asking you to prepare for your hard contract. There's only one reason for this, and it's because the developer knows they don't have the money to move forward with the project. Your reservation is useless and you best move on.

Real world example: Remember the Las Vegas Central project? One of these days, they'll be moving forward...

4) The project developer is in secret talks with the competition to sell their project. This one isn't quite as obvious as the others, but if word ever leaks out this is happening - RUN! Most likely, the developer will sell out, and everyone with a current reservation will form a class action and run to a lawyer (see reason #9) where you'll run into so much heartburn and confusion, you'll wonder why you ever got involved in the project in the first place.

Real world example: The Krystle Sands developer sold his project to Turnberry, honoring no contracts and leaving a boatful of investors, agents, and real estate professionals in a lurch which many still haven't escaped from.

3) You see a barrage of advertising all of a sudden, then it just stops completely. Guerilla marketing doesn't always work all the time. The projects that are successful are consistent in their advertising approach. When ads for a particular project are "in your face" all the time, via newspapers, the internet, local TV, in airports, magazines, etc for a month or so, then all of a sudden stop completely - you can be sure they're trying the "throw the spaghetti on the wall to see what sticks" philosophy. Translation - no high rise.

Real world example: Way too many to mention. In fact, this reason applies for just about every project in town that's failed.

2) You see the salesperson from one project mysteriously working for another. Many times, they call it their "sister project". But when a salesperson working for Project "A" talks about their high rise project being "the best in town" (and you hear this often), then see them working for project "B", that's usually a huge sign that something's up with project "A".

Real world example: Again, way too many to mention individually. Baseball players change teams less frequently.

1) The project doesn't pay non-recourse commissions to real estate agents. Wow.. this is a biggie, yet very few buyers make this an issue. If a high rise project is willing to pay a real estate agent a commission whether the project gets built or not, that's an extremely strong sign that the developer thinks their project will truly get built. The others are saying, "sell my project and if it happens, I'll pay you. If not, your out of luck". And since the success of all these high rise projects rest in the hands of real estate agents selling the product, why would an agent waste their time with a project they know isn't solid?

Inverse real world example: Trump, Allure, Sky, MGM... all pay non-recourse real estate commissions to agents. Guess what projects are completed or just about done!

I rest my case.

Tuesday, March 27, 2007

The Recent Buzz Regarding the Downtown Las Vegas Juhl Condo Project

As you already know, Juhl Las Vegas offers lofts from the $300Ks to the $700Ks with townhomes and penthouses still available. To be seriously interested in this project, you have to buy into the concept of the Las Vegas downtown revitalization vision. That's why I like it - and thats why I think this project is really a no-brainer. (pardon the pun as you'll see below)

Lou Ruvo Brain InstituteHere's more proof: Construction has started on the $70 million dollar Lou Ruvo Brain Institute, located just a few blocks from the Juhl condo site. The 67,000 square foot complex is being designed by the world renowned architect Frank Gehry, headed by Dr. Zaven Khachaturian, PhD, and supported by internationally acclaimed researchers.

It's projected to open in late 2008. By that time, Juhl owners will have already moved into their first-class loft units and probably enjoying life much better than where they presently are today.

First the World Market Center and now this. Downtown's steadily moving forward. I can't imagine why not everyone is getting involved - talk about diamonds in the rough! Why aren't you in Juhl yet?

Monday, March 26, 2007

Meet Your Juhl Las Vegas Neighbors

If you're a future resident of juhl, then make sure you save April 12, from 5:30 – 8:30 pm. and mark down the date.

Juhl will be having a cocktail party at the Celebrity Nightclub and Lounge, located on The Block. It’s a great chance to get to know your neighbors, and get a glimpse of what life will be like once you live at Juhl.

But don't wait for the party. Get a unit at Juhl today!

Friday, March 23, 2007

CondoGossip Sponsors Networking Event for High Rise Condo Industry in Downtown Las Vegas


It's good to be involved in the Las Vegas high rise condo market.

Last night, I attended a networking event over at the Downtown Cocktail Room in downtown Las Vegas sponsored by the folks over at CondoGossip.com. CondoGossip is a new website launched with the intention of networking with condo professionals, condo owners, prospective buyers, or just about anyone with an interest in the high rise condo market over drinks and entertainment.

While enjoying an awesome apple martini, I got to meet the site's owner and developer, Jake, who's got quite an interesting concept and vision for this project.

Although based in Atlanta, Georgia, CondoGossip will be making the rounds - Miami, Toronto, L.A. - and judging from the "CondoGossip Representatives" (as you see from the pictures), I'm sure he'll draw a lot of interest. : )

And it's no coincidence the event was held in Downtown Las Vegas. As many of the readers of this blog know, downtown is looking to be Las Vegas' destination for solid, affordable, and potentially enriching high rise and mid rise condo projects. You can't get more solid than Juhl, and if you're looking for a true high rise option, Streamline's getting closer and closer to completion each day. The Verge project just popped up last month with prices UNDER $150,000 for studios and are writing contracts as we speak. Union Park is moving forward and no one can argue with the success of the World Market Center. Each day, it's becoming clearer that for everyday average people, you gotta look downtown!

And believe me... there were a lot of good things to see Downtown last night! So please contact me if you're still looking for a condo and are fed up with paying the $1000 a square foot pricing that you see on the Strip.

Monday, March 19, 2007

Allure Las Vegas High Rise Condo in the Homestretch

Construction on the 428-unit Allure high rise condo located on Sahara Avenue and the Strip should be complete in September, said Fifield Cos. senior vice president and principal Alan Schachtman, adding another notch of success to Las Vegas' high rise condo market belt.

The 41-story high rise tower will cost $150 million to build and contain residences ranging from 671 to 4,400 square feet with prices starting in the mid $500Ks. And units are still available.

So, if you want to start living the high rise life in Las Vegas and don't want to wait 2 more years while your unit is being built, consider getting into Allure while opportunites still exist.

Thursday, March 15, 2007

Verge Downtown Condo Project Celebrates their Grand Opening TONIGHT!

Luckily, readers of this blog are now "in the loop" about Downtown Las Vegas' newest condo project, Verge. With everything that's planned for this community, life at Verge will be anything but ordinary. And the best part? The condos start at prices BELOW $150K!!!

Tonight they celebrate their Grand Opening at their Lifestyle Center at Main and Bonanza. With a $14 billion dollar downtown transformation currently going on, downtown is quickly becoming the place to be. The price is right... the timing's right... Email me with your contact info and I'll register you for this project so you can take advantage of an amazing opportunity.

See you at the party!

Monday, March 12, 2007

Lots of High Rise Condo Action on Las Vegas' North Strip

Not convinced about downtown Las Vegas growth? Uncertain about getting into Project CityCenter and all the development at the Strip's South end? Well, perhaps the growing North Strip may be just what the doctor ordered. With the recent purchase and redevelopment plans for the Sahara, and with Boyd Gaming getting set to unveil plans for their $4.4 billion dollar Echelon place project, the possibilities are endless for this stretch of Las Vegas Boulevard property.

Industry expert Brian Gordon, a partner in Las Vegas-based financial consulting firm Applied Analysis, recently stated that the Echelon and the Sahara could spark a tremendous development wave between the two locations. Since the opening of Wynn, the North strip has seen some significant redevelopment already. Now that the Stardust is set for implosion to make room for Echelon, I predict a CityCenter-like opportunity for the high rise condos that will become available for investors at that site.

In addition, you'll probably see changes at the 68-acre Circus Circus, along with Turnberry possibly developing their long-awaited Fontainbleau project, and there's even plans to develop a 1,888 foot high, 4,000 room hotel/casino on the site where the Wet n Wild theme park once stood. Add to that all the construction progress you see at Turnberry Towers and Turnberry Place as well as the tremendous work being done on the 428-unit Allure high rise project and the amazing progress with the Sky Las Vegas project, and it's clear the potential customer base for the North Strip is unprecedented.

All I can say is, when they officially announce the availability of Echelon units, smart investors better be reading this blog and contacting me for reservations!

Friday, March 02, 2007

The Apprentice to Feature Trump's Las Vegas High Rise Condo Hotel

Mark April 8th, 10:00pm on your calendar. That's the day Donald Trump's "The Apprentice" will be featuring his Las Vegas high rise condo hotel project. In addition, Trump will be making a very special announcement which we'll break to you right now: Trump will be announcing the presale program for his second Las Vegas tower.

Please contact me immediately if you would like priority placement in this new high rise tower before the public release. Trump will be pre-releasing a limited number of units at introductory prices very soon, which will require only a $10,000 fully refundable deposit.

We all know what to expect from a Trump project. All the units (Studio, One Bedroom & Penthouse One, Two & Three bedroom units) are sold fully furnished where only the best will do. In addition to the elegant suites, a full complement of services and amenities true to the Trump name are planned.

Trump International Hotel & Tower is located in the heart of Las Vegas, immediately adjacent to the Fashion Show Mall, and in close proximity to the Venetian Hotel and the new Wynn resort. Las Vegas locals can already see the construction progress on Trump's first tower as it nears its completion. If you missed out on that one, Trump II can be your redemption.

So get in now, prior to the April 8th announcement to millions of people on National TV. I bet even Rosie O'Donnell would like to get in on this one!