It looks like Reason # 5 of our last year's Top 10 Reasons Why Your High Rise Won't Get Built post (inordinate amount of time passes without activity) has reared its ugly head in the form of the $740 million dollar Pinnacle Las Vegas high rise condo project. After more than 3 years of construction ground breaking inactivity, some buyers have had enough and have recently slapped the Pinnacle with a class action lawsuit (which also happens to be reason #9) for breach of contract and are demanding the return of deposit money plus damages and attorney's fees.
3 contractors in 3 years, plus the uncertainty in the overall national real estate market, coupled with Pinnacle's unknown present construction status along with a groundbreaking date that has changed repeatedly, all could signify the death of this once promising project.
According to the lawsuit documentation, The Pinnacle high rise condo purchase agreements contained addendums with developer benchmarks, such as breaking ground within a certain time frame and/or delivering 306 purchase pacts or the developer can be found in default. The lawsuit also adds an additional previously unheard environmental issue that the project site is contaminated with high benzene levels as a result of dropping ground water levels.
All in all, it doesn't look good for the future of the Pinnacle high rise condo project. The Las Vegas condo market is certainly facing challenges - but as we all know, obstacles are usually real estate opportunities in disguise. For now, let's focus on getting great deals and bargains from the Las Vegas high rise condos that have already been built with a number of units facing fallout from investors who would consider selling their units at unheard prices. Like this one >>
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment