Upon Further Review, the Las Vegas High Rise Condo Hotel Call Stands!

Yesterday's post on the Las Vegas high rise condo hotel property management company that's suing Trump generated a lot of email interest, so I decided to do a little more research into the situation. The first thing I did was to read the entire complaint - all 15 pages. Page 6 of the document has an interesting paragraph pursuant to the "Condominium Hotel Act" which provides a legal description of hotel condo units:

NRS 116B.325 Description of units. A description of the residential units and the hotel unit which sets forth the name of the condominium hotel, the file number and book or other information to show where the declaration is recorded, the county in which the condominium hotel is located and the identifying number of the units is a legally sufficient description of those units and all rights, obligations and interests appurtenant to those units which were created by the declaration or bylaws.

Now, I'm no lawyer, but it sounds as if plaintiff (Nights at Vegas) just wants to be able to use the Trump project name (and not any Trump trademarkings) to identify a particular condo hotel in which they are conducting business. Seems fair enough to me. If you're a car mechanic and your specialty is repairing Mercedes, you should be able to use the word "Mercedes" in your advertising. It's the same thing here only applied to real estate and high rise condo hotels.

Seems like a slam-dunk case that should go away quickly. But then again, like I said... I'm no lawyer!

Las Vegas High Rise Condo Hotel Property Mangement Firm Suing Trump High Rise Developer

A while back, I made a prediction that if you really wanted to get rich in Las Vegas, open a property management business catering to high rise condo hotel owners and help make the process of renting out their high rise units easier and hassle free.

Well, apparently, it's a lot tougher than it seems. In fact, a company called Nights at Vegas is doing just that, and it seems they're running into some issues with the Trump organization.

According to TMZ.com, Night's at Vegas is suing the Donald and all his partners involved in his Las Vegas high rise condo hotel tower project. And when we say suing, we mean suing in a big way, to the tune of $4 billion which is way more than he's even worth. Talk about a statement! Nights at Vegas is a licensed real estate property management company and has leased out a number of the condos at Trump's condo hotel, but only charges the unit owner 20% of the rental income as opposed to the 50% split offered by Trump's management company handling rentals in the high rise tower.

Nights at Vegas' complaint alleges that Trump has effectively made it impossible for them to do business by prohibiting them from using the "Trump" name in any of its advertising or marketing and therefore is violating anti-trust laws amongst a whole bunch of others. The complaint is detailed in the legal documentation found at the TMZ website which broke the story.

Vegas is seeing their share of perceived David vs. Goliath stories lately regarding the Las Vegas high rise condo marketplace. And from the looks of things, David is winning by all accounts in the mind of public opinion.

Palms Place Developer George Maloof Sees Approval Next Month for his Las Vegas High Rise Condo Project

One of the most anticipated high rise condo hotel projects in Las Vegas is getting closer to their official opening. By the end of February, the Palms Place high rise condo project should have their certificate of occupancy in place and owners can start moving into their $1,000 per square foot high rise units. The project has been completely "sold out" for quite some time now, as buyers put down 20% deposits to secure their units. How many actually close escrow remains to be seen, but it will be a good indication of where this marketplace is going should a high percentage followup to close.

The project cost more than originally planned (of course), but a developer such as George Maloof had no qualms about moving forward to complete the 47-story, 599-unit condo hotel. After all, what's a mere $650 million for arguably the "coolest" project in town? Designer accessories, fully equipped kitchens, 42-inch plasma TV's, rainfall showerheads, jetted tubs, private balconies, beauty salon, 24-hour room service, lobby bar, concierge, business center, restaurant, lounge, a 50,000 square foot pool and spa with the first Turkish bath in Las Vegas... the amenities go on and on.

Unfortunately, as previously mentioned, the project's completely sold out. If you want one, you'll have to get in line when resales become available. Or look into other projects such as the Platinum, MGM Residences, Trump Tower, CityCenter, Fountainbluau, and yes, the Cosmopolitan.

Cosmopolitan Las Vegas High Rise Condo Developer Has Seen Foreclosure Situation Before, With Long-Term Happy Endings

"This action by our lender comes as no surprise. With the current challenges within the real estate and debt capital markets, which are out of our control... we both anticipated and planned for this."

That's the statement Cosmopolitan developer Ian Bruce Eichner made regarding news that his $3 billion dollar Las Vegas high rise develpment is now facing foreclosure as a result of defaulting on a $760 million construction loan from Deutsche Bank.

Surprising statement? Perhaps, but then again... In his past dealings, Eichner's also lost control of two major high rises in Manhattan that today are complete successes, the 70-story CitySpire and the 42-story tower at 1540 Broadway. It appears the Cosmopolitan's another high rise, high quality project that'll eventually get built without him in control.

MGM Mirage is reporting that sales on Project CityCenter, which is also anticipating a late 2009 opening, are still holding strong, with half of the available 2,647 condo units "sold" for $1.63 billion. That's feuling speculation that they may be in the market for acquiring the Cosmopolitan project as well.

"I think the Cosmopolitan is going to get built," said Frank Fantini, a Dover, Delaware-based casino consultant and publisher of the Gaming Morning Report. "It's well under construction. At worse it will be a beautiful thing for MGM to buy."

And that's what it is at this point - pure speculation. Someone will buy it (though I really doubt it will be MGM), finish building it, and continue the tradition of successful "Eichner-less" properties such as the previous New York examples. The fact that construction hasn't stopped on the 2,998 room high rise condo-hotel project is a good sign, but don't get caught up when they talk about "sales" statistics. Cosmo will tell you that the project is 84% sold, but not one of those sales has officially closed and I would hazard a bet that many investors holding Cosmo contracts would rather walk away ala another high profile high rise condo project here in Las Vegas than actually close the deal.

Just remember two things: CitySpire and 1540 Broadway. High Rise condos and condo hotels in Las Vegas remain a long-term investment - you can definitely plan on that!

Seeking Loft Life? Metreon Lofts Makes For an Interesting Las Vegas Mid-Rise Condo Preconstruction Option

If you frequently drive past Flamingo Road and the 215 Beltway, I'm sure you've noticed the construction going on on the Northeast corner of Flamingo. At that location, Breslin Builders is constructing the new $33 million Metreon Las Vegas, a mixed use mid-rise condo project being developed by the folks over at Kennedy Commercial. If you're unfamiliar with Kennedy Commercial, they've been developing mixed-use real estate developments for quite some time now, including the construction of "Solstice", a very anticipated resort project in Mesquite, NV.

Metreon is poised to quickly become the number one option for a live-work-play environment in Las Vegas. This distinctive neighborhood is just six miles from the Las Vegas Strip, directly outside of Summerlin, the nation's premiere master-planned community. The development calls for a 110,000 square foot enclave of upscale shops, fine restaurants, and popular stores in addition to two five-story mid-rise towers with live-work and residential units.

Metreon is offering Live-Work Lofts, perfect for artists, photographers, composers, or the ingenious entrepreneur where your commute is just a stairway away. These two-story lofts provide spacious floor plans, a business store front, and a luxurious second story with tremendous amenities (plus a 2 year membership to the adjacent Las Vegas Athletic Club). Then there's the terraced lofts - on the third and fourth floors - with great views of the Las Vegas Strip and Red Rock Canyon. If you love an open floor plan with everything included, a terraced loft at Metreon will be perfect for you. Finally, 2,400 square foot penthouses are also available if you've always strived to achieve the best life can offer.

Large, luxurious units, secure enclosed parking, controlled building access and prices starting at less than $500 per square foot. Compare that to the Las Vegas high rise condo Strip counterparts and you'll see that Metreon is a project you must certainly look into. Here's the bad part: there are only 14 available so you'll need to act fast if you'd like to secure a unit (name and phone number please). The first phase is scheduled to finish by mid-2008.

Now here's the good news: On Thursday, January 31st from 6:00pm to 9:00pm, Metreon Lofts and the Las Vegas Wealth Group will be hosting a plush tent "Buzz Party" to be held at the Metreon Sales Center (9512 W. Flamingo Road, Las Vegas, NV) to showcase this project to the public. Open bar, great food, and excellent information. Please RSVP now for this special event.

More Problems Await The Cosmopolitan Las Vegas High Rise Condo Project

As an addendum to the last post regarding the Cosmopolitan high rise condo project on the Las Vegas Strip, it seems the investment bank Deutsche Bank has gotten into the action. Yesterday, Deutsche Bank filed a notice of foreclosure on the $3 billion las vegas high rise condo hotel project for a $760 million dollar construction loan that just matured.

Developer Bruce Eichner confirmed the story and also confirmed that he's looking to find more investors to keep the project going. Eichner said the foreclosure action did not come as a surprise and that he and his group anticipated and planned for it.

With the real estate and debt markets the way they are right now, raising capital in this environment isn't easy. But Eichner said he's had multiple conversations with several groups of interested investors already which apparantly are still ongoing.

I think reading between the lines of these comments means that you'll eventually see the Cosmopolitan happen, but without Eichner as the developer and perhaps under an entirely new project name.

I'll Have A Cosmo... That'll Be $400 Million, Please

The Cosmopolitan project, a Las Vegas high rise condo hotel project that's been progressing nicely, is now looking for investors. Usually, when you read a sentence like that, you'd think the developer would be looking for investors to purchase individual condo units in the building as investments. But no - in this case, they need investors to step up in order to invest in the entire project itself to the tune of $400 million.

With cost overruns coupled with rising construction costs and a perceived soft Las Vegas high rise condo real estate market, this once solid project has now been possibly placed into a state of limbo. However, that fact that the project is seeking outside investors isn't the real reason this project may be in jeopardy. After all, it's location right on the Strip is perfect and with CityCenter practically next door, you should be looking at a slam-dunk winner. And private equity funds are always on the lookout for opportunities such as this. Cosmo still makes for an excellent Las Vegas Strip high rise condo opportunity - someone will step up to the table I'm sure.

What bothers me more about this story is that the Cosmopolitan's COO recently quit Cosmo to go work for Fountainbleau Resorts, which just happens to be building a high rise resort at the site of the old Krystle Sands project by the Riviera across from Turnberry. Now why would someone with that kind of job go to a competitor? Perhaps a lot of money was thrown her way... Maybe she thought she just needed a change of scenary... Or perhaps she knows something we don't?

I don't know. But judging from the track record that the Cosmopolitan developer Ian Bruce Eichner boasts and the fact that construction is still moving forward, I'm pretty sure the Cosmo project will bounce back from this and eventually become a reality. And when it does, those who've invested - both development-wise and individual high rise condo unit owner-wise - will be quite happy they smartly spent their money. Interesting Cosmo opportunities still exist - contact us for the details...

Announcing VegasHighRiseResales.com for the Las Vegas High Rise Condo Resale Market

It all started with this post. So many of you have responded by email and phone regarding the previously untouched upon subject of Las Vegas high rise condo resales, that we decided to create a website based solely on this topic. You can view it here at www.vegashighriseresales.com

This site will appeal to 3 types of people:

1. The person who already has a contract on a Las Vegas high rise condo (or condo hotel) who may be in somewhat over their heads and would like help in remedying their situation.
2. The high rise buyer who's sat on the sidelines for awhile waiting for that high rise condo deal to come (whether it be a strip, downtown, or off strip property)
3. Those who've already closed on high rise units looking to sell

Which one are you? Please visit the website, let us know what you think, and if you'd like - definitely sign up for resale Property Alerts. We've spoken to a number of you already and are putting some extremely interesting opportunities together right now. 2008's really starting to look great!

Vegas Magazine is a Must Read If You're A Las Vegas High Rise Condo Buyer

There's some interesting controversy recently in the Las Vegas High Rise condo world regarding a project we've mentioned many times in this blog. I haven't confirmed the rumors as of yet, but suffice to say that you'll get a really good clue as to what I'm taking about if you read this month's edition of Vegas Magazine.

But if you don't have the time, I'll save you the trouble as to what it means for you. How about a Las Vegas high rise condo starting at $227,000 !?!? I'm talking large square footage in a high rise project where comparable units have sold for over $700,000. This is no exaggeration.

We're getting out ducks in a row for this one folks, so if you're at all interested in a high rise condo purchase, you need to let us know so we can add you to our prospective purchaser list for this opportunity. Obviously, we'll give you more details when you contact us (please include your name and phone number), but we'll need you to act fast if you like what you hear.

Playing It Safe is Bad Strategy in Sports And Las Vegas High Rise Condos

I had a pretty profitable day at the sportsbook betting on the Giants to beat Tampa Bay yesterday. Now I'm no football analyst - and I'm certainly not a betting handicapper. So when and how did I know Tampa Bay would lay a stinker in their loss against the Giants? I knew way back on December 30th, immediately after hearing that Tampa Bay was resting their entire starting lineup in their 31-23 loss to Carolina in anticipation of their first round playoff game against New York.

It's hard to understood this theory of resting players. Resting key players generally sends a bad subliminal message to all involved. It's a message of fear (and we all know fear is not a good emotion when it comes to football.) Coaches are afraid their star player might get hurt in a "meaningless" game situation. But they're more afraid of the media outcry and the storm of controversy they'd be subjected to if an injury or a freakish play would occur in that game. So they decide to "play it safe" by avoiding the possible situation entirely. What they fail to understand is that "playing it safe" and resting players disrupts routines and usual habits that athletes thrive on (and need) in order to achive peak performance.

Take it from someone who's played his share of collegiate sports: nothing will throw a player into a slump faster than needless resting.

Why do you think wildcard teams in baseball perform so well in the postseason, many times winning the World Series against heavily favored opponents? It's because every late-season game means something to the wildcard hopeful. All the starters play. The pitching rotation never gets altered. Managers manage to win, not to avoid possible injuries to their stars. In short, they overcome fear. In baseball, teams who traditionally lead their division by a large margin and clinch early rarely perform well in the playoffs, and it's because they form bad habits due to lack of urgency. These bad habits, including the resting of key players for no real reason - after all, does a 25 year old baseball player really need to rest? - almost always leads to slumping performances.

That's how you knew the 2003 Minnesota Twins, heavily favored and winners of 90 games while clinching first place early in the AL Central, had no chance against the Yankees in their postseason series in which they lost in 4 games while scoring a total of 6 runs in the entire series. The last weekend of the regular season saw the then hapless Detroit Tigers, en route to the worst record in baseball history, come into Minnesota and took 3 of 4 "meaningless" games when Twin's manager Ron Gardenhire decided to "rest his starters" so they'd be ready for the playoffs. So much for that...

And that's just one example. It happens all the time in just about all sports. You can't just turn it off and on. You need to play every game to win - every day! Otherwise, bad habits develop very quickly - and these bad habits just don't go away overnight.

If you don't have that "win now" attitude in sports (or in life for that matter) success will constantly elude you. I'm amazed at all the sportswriters and analysts who actually support this crazy notion of resting players (most of course, have never played professionally). And speaking of professionals, we don't needlessly rest at our real estate office. We understand the media's manipulatization of fear. We "play to win" every day and aren't afraid of some far-fetched scenario where something "might happen". Here's your two best bets in Vegas: contact us for our take on the Las Vegas high rise condo market - OR - find a nice rested football team, and head to the nearest casino.

...And don't even get me started on the "Prevent Defense"

Once Again, Lawyers Are Getting Involved in the Las Vegas High Rise Condo Hotel Market

On the heels of my last post on the tremendous amount of mis-information regarding high rise condo hotels comes today's article in the Las Vegas Sun about how high rise condo owners are now suing developers because their condo rental units aren't performing to the levels they expected.

It seems 40 unit owners at the MGM Signature high rises have sued MGM for fraud, saying they only bought their condos because false representations were made to them regarding rental income projections. Regardless of whose side you're on, take these two quotes in the article to heart:

From Joel Greene, a condo marketer in Miami: "Instead of riding out a long-term investment that will probably be OK, some buyers are looking for their attorneys to bail them out".

And from real estate broker Rory Agnello: "The problem has nothing to do with the housing market. It has to do with a bad marketing program. They sold units at the wrong prices to the wrong people."

I have a feeling we'll be seeing similar articles in the near future and it should drive home a very important point: you need to do your high rise condo homework before making a purchase and determine whether or not you can tolerate the risk of such an investment. Greed is a strong emotion. Don't let it factor into your purchasing decision.