Inviting, evolving Vegas

Makeovers, expansions and new buildings define the ever-changing (for the ritzier) Las Vegas.
By Bill Ordine

The main tower in the CityCenter casino-hotel as rendered by a computer. The Mirage is hoping to foster a neighborhood feel among its 7 buildings.

The Stardust, after 48 years on the Las Vegas Strip, is gone. The Venetian, opened in 1999, is about to double in size. And the casino formerly known as the Aladdin, just seven years old, is putting the finishing touches on a massive makeover as Planet Hollywood.

Las Vegas, always in transition, is at it again and, as usual, making itself bigger, taller, ritzier and, according to some, more urbane. The difference this time is that some of the buildings are being designed not merely to shout for attention but to actually complement each other.

The Venetian, for example, will be joined late this year by the Palazzo, a $1.8 billion expansion with a 50-story, all-suites tower and an enormous casino. The complex will have more than 7,000 rooms, and company officials say it will be the largest hotel-convention complex anywhere.

Even more ambitious is CityCenter, a $7 billion, seven-building complex that's already rising from the desert but is still more than two years from opening. Casino giant MGM Mirage is trying to create a 21st-century urban environment, albeit an extremely expensive one. The cheapest studio condos will be in the $500,000 range, but many units will be in the millions.

"By bringing great architects to Las Vegas, we are developing a much more global view of how people will live and be entertained 30, 40 years from now, rather than what's hot right now," MGM Mirage spokesman Alan Feldman says.

What's hot right now must be working, though, because the Strip continues to lure more visitors each year - now nearly 39 million annually.

Here are some of the major projects underway, with projected completion dates:

Planet Hollywood

September

The makeover of one of Vegas' biggest casino flops - the Aladdin, which opened in 2000 at a cost of $1.4 billion - is nearing completion, and the property is scheduled for a grand opening in late September.

Officially christened Planet Hollywood last month, the re-made casino will try to reverse the fortunes of a location that's become the Strip's Bermuda Triangle; two versions of the Aladdin have fared poorly there.

The casino's exterior, originally a fanciful turn on an Arabian Nights castle, has been resurfaced to a cream-colored sleekness. Inside, the giant genie's lamp is mercifully gone, and the decor is redone in geometrics.

The resort still figures to be an upper mid-market player in its pricing, with remodeled rooms inspired by Hollywood movies and familiar eateries such as P.F. Chang's and Alfredo of Rome.

A connected shopping mall will also get a contemporary look as it is renamed from the Desert Passage to the Miracle Mile. And a 50-story tower of residences and timeshares is under construction next to the casino-hotel.

Palazzo

Late 2007

The Venetian, one of the better renditions of a themed casino-hotel, is getting an addition that will be both separate from and joined to the original property.

The expansion will have its own name - the Palazzo - its own tower of suites, and its own casino, covering about 100,000 square feet. But it will not sport the faux Italian Renaissance style that distinguishes the Venetian. Instead, the motif is advertised as featuring Italian accents with Asian influences.

The Palazzo's signature feature will be a 60-foot, glass-domed lobby with a towering fountain, and it will connect to the Venetian through an octagonal passage that will also have a glass dome. The two hotels will have about 30 restaurants.

The Venetian's swimming pool area and the shopping mall, the Canal Shoppes, will connect to pools and shops at the Palazzo. The new retail area will add about 60 stores, highlighted by New York apparel high-ender Barney's, raising the total to 140 retailers. A 270-unit condo tower is planned to rise above Barney's.

The ultra-luxurious Canyon Ranch spa will also get bigger. Because of limited land, the Palazzo's parking garage was built underground, a rarity in Las Vegas.

Trump International

February 2008

Donald Trump's condo-hotel tower, west of the fading New Frontier gambling hall on the north end of the Strip, differs from other high-profile projects in that it will not have a casino.

But at 64 stories, and with Trump's name emblazoned across the top (much as rival Steve Wynn's signature decorates his own luxury casino across the street), the golden high-end high-rise will be prominent on the new Vegas skyline.

While many condo projects have fizzled - count actor George Clooney and Trump's ex-wife, Ivana, as frustrated developers - the Trump project sold briskly, and a twin tower is expected to start going up as soon as the first is finished.

Owners can rent their condo hotel units when they're not using them. The 1,282 units in the first tower were priced from $550,000 to $6 million (most are studios), with the ante going up for the second. Amenities will include a restaurant and a swimming pool.

Encore

Early 2009

Wynn was planning an expansion of his 50-story, curved, bronze-colored resort even before he opened the doors in 2005.

Budgeted at $2.1 billion, the new hotel tower, Encore, will have more than 2,000 rooms, from executive suites to duplex sky villas and penthouses. There will be a 72,000-square-foot casino, additional restaurants, nightclubs, swimming pools, and retail stores.

CityCenter

Late 2009

One of the most ambitious entertainment and residential projects ever undertaken, CityCenter is likely to influence development in Las Vegas.

Historically, the Strip's sprawling buildings have possessed a self-contained convenience, but there was little sense of community.

In contrast, CityCenter is trying to create a neighborhood of sophistication, where its visitors and residents will stroll among seven buildings, to eat, shop and be entertained. Five high-rises will be devoted to guest rooms, residential condo or condo-hotel units.

Although the buildings are being designed by star architects, the most distinctive may be the Veer Towers, an aptly named pair of 37-story, inclining glass high-risers.

An entertainment and retail district will front on Las Vegas Boulevard, with some shops, such as a gourmet grocery, catering to the resort's residential population.

The largest structure - a 61-story, 4,000-room centerpiece tower - will be more conventional by Las Vegas standards, meaning it will include a massive casino, 18 restaurants, six bars and lounges, an 1,850-seat theater, convention center, spa, fitness center, salon, and four-pool swimming area.

Altogether, CityCenter will have about 7,600 living spaces on 76 acres. The resort will have its own public transit system - a tram that will link to MGM Mirage resorts Bellagio to the north and Monte Carlo to the south.

If you want to see what's coming, including sample condo units, you can visit the sales pavilion just south of Monte Carlo.

Echelon Place

2010

Plans for Boyd Gaming Corp.'s $4 billion project on the north end of the Strip (where the Stardust once stood) have some similarities to CityCenter.

For instance, Echelon Place with have about 5,300 high-end guest rooms in five hotels of varying styles, including Shangri-La, a Delano and a Mondrian. The largest hotel, the Echelon Resort, will have about 2,600 rooms in one tower and 700 rooms in a suites tower.

It also will have a huge casino, dozens of restaurants and entertainment venues, a shopping promenade, and a convention center.

But, unlike CityCenter, there are no condos on the drawing board. Still, there are about 20 acres of the total 87 that could be used for that purpose.

Echelon president and CEO Bob Boughner says a key objective is to cut down on the walking that guests have to do - a bane for many visitors.

Condo Market Shakes Out

Posted By:Tara Siegel Bernard

It's a great time to look for a condo -- but it's likely to get better in the months ahead.

Whether you're looking for a vacation home or to downsize your primary residence, the surplus of condos in some of the nation's hottest regions clearly makes this a buyer's market. That includes places like San Diego, Phoenix and Las Vegas, where both builders and investors are trying to unload properties into an already soft marketplace.

Of course, if you wait until later this year, you might land even get better deals. That's particuarly true in southern Florida, where the shakeout in condo prices isn't over.

“The pressure on developers to sell will continue to grow, not decline, over the next few quarters because there will be more and more new inventory coming onto the market,” said Ron Witten, founder of Witten Advisors, a Dallas-based multi-family market research and advisory firm.

Indeed, as one of the most speculative areas during the housing boom, many developers started condo projects just as the market peaked. Now, those units are set to hit the market this year and next, which is why some experts are advising buyers to bide their time. In fact, some 200,000 new units will be completed by 2008, according to Bernard Markstein, senior economist for the National Association of Homebuilders.

“From a buyer’s perspective, there would be more risk in buying today rather than buying nine months from now or something in that range,” Witten added.

Builders won’t be the only ones looking to sell. Speculators who rushed in and bought condos by the handful in hopes of flipping for a hefty profit later on will also be looking for buyers, as will many of the lenders themselves. Foreclosures are on the rise because many individuals bought homes when credit came easy, often with enticingly low introductory interest rates or little money down.

“The poster children for excess construction generally reside on the coasts in markets where home price appreciation have boomed,” said Suzanne Mulvee, senior real estate economist with Property & Portfolio Research, a Boston-based real estate research firm, which expects further price declines throughout 2007. “That includes Florida - especially Tampa, Miami and Orlando - Chicago, Las Vegas, Palm Beach and San Diego.”

While the ripple effects of the boom are apparent across the country, prospective condo buyers need to closely evaluate their local markets before deciding to hold out or take advantage of the relative deals on the market now. For instance, in some markets like Washington D.C., developers are already properties off the market and renting them until the market shows signs of stabilization, real estate consultants said.

Las Vegas Condo Conversion

In the past few years, the condo-conversion has been a very popular and profitable trend for many. For anyone who is not familiar with conversions, they are simply apartment complexes (often built to condo specs) that are bought out, rehabbed inside and out, (consisting of minor cosmetic repairs such as re-painting the interior and exterior walls, putting in brand new flooring, and sprucing up the landscaping) and then sold as separate units. This has been a relatively inexpensive way to get in to the real estate investing game for those who are just starting out (average price for a 1 bedroom unit ranging from $130,000-$160,000, and $190,000-$260,000 for a 2 or 3 bedroom), as well as for investors who would rather not go through the hassle of purchasing and trying to rent out a single family home. The advantage being that the condos would have a much lower rate of vacancy, and more appeal to some with the included amenities.

The communities typically have homeowners associations, with fees ranging from $80-$150/mo, which may include: grounds maintenance, water, sewage trash, and structural insurance on the outer walls of the building (insurance from the “decorated” walls in is the responsibility of the homeowner and is not included). They have been known to contain one or more pools, Jacuzzis, fitness centers, tanning beds, barbeque grills, and even racquet and tennis courts, all the makings of an attractive package for the tenant. As an incentive to the buyer, builders are, in many instances, offering (if using their “preferred” lender) to pay closing costs, and to include all new appliances.

One builder, who recently opened its doors, had a deal as yet unheard of in Las Vegas in a few years. This particular builder has several “preferred” lenders to choose from, and is offering to pay the homeowners association dues for one full year (approx. $130/mo), and pay up to $6,000 towards closing costs, and even to pay the entire interest payment on the mortgage for the first 12 months! Upon speaking with the lenders personally, they claimed they can get investors in for 5% down (average cost of the units are $220,000-$270,000 for a 2 bedroom, 2 bath about 1,074 sqft).

This would be an ideal opportunity for the investor who is looking simply to buy in Las Vegas, and more importantly one who is willing to hold on to the unit for at least 2 years. The reason is because I believe that the other investors, who purchase in this community, will try for an interest only loan, let the builder pay it for them for the 12 months, and then sell the units off. The problem with this is that after that first year, there may be a period where there are quite a few units for sale.

My thinking is that if you were to hold off until the second year, ride through what may be an initial selling frenzy, and then decide if they want to sell it, you may be in pretty good shape. The first year’s interest and HOA dues being paid would mean that there would only be perhaps $200-$300 due each month. Rents for a 2 bedroom in that area run about $1000-$1200, leaving a good positive equity position for the first 12 months. The condo community is in an excellent area of Henderson, with good freeway access, and is close to shops and restaurants.

What the condo owner should be doing that first 12 months, in preparation for the second year, is setting the interest payment aside in an account, (offset by the positive equity aided by the rents) in order to be able to draw from this to offset the second years note.

To answer the question of how is any money made off of this, seeing as how the first year is interest paid in full, but the second and subsequent years are not, lets compare this to any other condo conversion community in the valley. The price point will still be similar, there may be a seller contribution of $2,000-$3,000 for closing costs, and there may be new appliances included as well. So that leaves us with appreciation. With Las Vegas appreciating as greatly as it has the last few years, appreciation would be one of the primary factors. Even if we appreciated at a lower rate than the past (say 10% instead of the almost 16% we had in 2005), that would mean the investor is receiving one full year’s worth of appreciation, plus the positive cash for that year. The second year may turn into a negative cash situation, but there is still the compiling appreciation (10% from year one, added to the value of the condo, plus the appreciation of year two, and so on for any subsequent years the unit was kept and not sold).

If you feel up to it, play with the cash flow calculator for a bit, see how the numbers work out, don’t forget to factor in property management fees (8%-10% of rents) if that is something you would use (there are other options that are less expensive though) and if it seems like something you would be interested in, feel free to e-mail me with questions.

The Trop is toast

BY DAVID MCKEE

Yet another Strip icon appears to be living on borrowed time. The Las Vegas Tropicana's casino, with its barrel-vaulted, stained-glass ceiling, doesn't figure in plans for the property's future.

Kentucky-based hotelier Columbia Sussex has disclosed its $2 billion scheme for remaking the Tropicana Resort & Casino, at the Strip and Tropicana Ave., starting later this year.

The current Island and Paradise towers will remain, along with the showroom. All else, according to Clark County documents, will be demolished to make room for four additional towers plus a variety of other attractions. If the use permits are granted, Columbia Sussex will have two years to get started on the project.

In an item for tomorrow's Clark County Planning Commission agenda, Columbia Sussex subsidiary Wimar Landco seeks use permits for, among other things, 9,276 hotel rooms. It will also build 948 condo-hotel units -- a grand total of 10,224 guest rooms on 34.4 acres. By contrast, as of 2005, the neighboring MGM Grand Hotel Casino had 5,043 rooms (not including the Signature hotel-condo development) on almost 92 acres. At the end of its current Palazzo Tower build-out, The Venetian Resort Hotel Casino will expand from 4,027 guest rooms to 7,052 on approximately 60 acres.

Attorney Greg Borgel, representing Wimar Landco, was of the impression that the casino proper would escape Columbia Sussex's wrecking ball and said the resort would stay open throughout construction. "There is no intention to close the current property at all," Borgel said, but a Clark County planner confirmed that the casino would be demolished.

According to Planning Commission documents, the Island and Paradise towers will both be merged into much larger, new towers. The Paradise Tower (380 rooms, following renovation) will become an adjunct to a 3,170-room Tropicana Tower. A reworked, 542-room Island Tower would be combined with a proposed South Hotel Tower of 34 floors and 2,456 hotel rooms.

"That's one of the higher densities that's come along," Borgel said of the proposed crush of hotel rooms, "but that's the direction everything is going" along the Strip.

The planned resort condos will be sequestered in a 33-floor Northwest Tower, standing as much as 461 feet tall. It would be complemented by a 34-story, 1,728-hotel room Northeast Tower, for a total of six towers on the South Strip acreage, much of which is currently occupied by low-rise motel structures.

Hotels target valley gateway

By Liz Benston
Las Vegas Sun

Tourists itching for chock-a-block gambling action don't stop at Primm or Jean as they drive into Nevada along Interstate 15. But hearts jump when the Strip comes into sweeping view.

That magic moment arrives near the off-ramp for State Route 146 and St. Rose Parkway. It is the gateway into town, where the curtain is pulled back, pulses quicken and anticipation mounts.

Two developers want to use that location to bring the Strip just a bit closer to California, turning a windblown intersection in the desert into a miniature casino corridor.

Their eyes are set on parcels just a stone's throw from the off-ramp, at the corner of St. Rose Parkway and Las Vegas Boulevard South - home now to the Last Call truck stop.

Unlike the relatively low-rent hotels at Primm and Jean, this intersection is set to be developed with three resorts in the style of Station Casinos' Green Valley Ranch - a deluxe property that appeals to resort-goers and locals alike.

One of the two developers, Anthony Marnell III, is doubling down on his initial investment.

Marnell, the son of casino operator and builder Anthony Marnell II, has submitted plans to the county for a second casino on 17 acres at the northeast corner of Las Vegas Boulevard and St. Rose Parkway, just north of the proposed M Resort approved last year by the Henderson City Council.

The northeast-situated resort, as yet unnamed, would offer 1,500 hotel rooms plus condominiums, shopping and other attractions. Its construction time line depends on the pace of nearby development, and may be two years off, Marnell said.

Its bigger, older sister will be the $1.8 billion M Resort project, a 1,000-room hotel that is part of a mixed-use retail and commercial development that would be built on 79 acres at the southwest corner. The first phase of the M Resort, which is planned for an additional 1,000 hotel rooms and about 2,000 condos, is expected to begin construction before the end of the year.

At the northwest corner, Southern Highlands developer Garry Goett wants to build the Southern Highlands Resort, another mixed-use development that would cover about 100 acres at a cost of more than $2 billion.

Some say Marnell and Goett had little choice but to build so far south. Parcels available for sale on the Strip are hard to find and astronomically expensive.

"The reason you're seeing land developed further south is because that's where it's available," said Alan Feldman, spokesman for MGM Mirage, which owns casinos at Primm and Jean.

Marnell said he targeted the St. Rose location to capitalize on the inevitable growth of tourism in Las Vegas.

He remains unimpressed with other sites developed south of Mandalay Bay and north of that intersection in recent years, calling the mishmash collection of high rises, strip malls, apartments and ranch homes along the so-called South Strip "a developer's nightmare."

"They've got to do a lot of work before it figures out what it's going to be when it grows up," he said.

Also unappealing, he said, is the several-mile gap between the planned interchange at Silverado Ranch Boulevard and I-15 further north and the interchange upgrade under way at Blue Diamond Road and I-15.

"As I see it, the (St. Rose location) is the only intersection on the Strip that would be viable for major Strip development," Marnell said. "It's the first entrance to the greater Las Vegas area, and it's the last stop out of the city. It's going to be one of the next great corners of Las Vegas."

Some say location isn't everything.

If proximity to California were more important, the Primm and Jean casinos would steal an even bigger share of business than they do, said Carlton Geer, director of the Global Gaming Group brokerage and consulting business at CB Richard Ellis in Las Vegas.

Geer said it will take at least five years before the intersection has the critical mass to support a large-scale resort.

Even with three resorts, the outpost won't appeal to customers who would rather be surrounded by mega-resort action, he said.

"A lot of people like to come to Las Vegas and stay where they can walk and have easy access to things around them," Geer said.

The success of the casinos in capturing tourists versus locals will depend on the resorts' quality and amenities, he said.

County planners are already calling the intersection a gateway into the casino corridor and say the projects should offer a welcoming, pedestrian-friendly atmosphere.

"The site will be extremely visible from St. Rose Parkway and Las Vegas Boulevard South as visitors and locals enter the Las Vegas Valley from the south," a Planning Department analysis says. "It is imperative that the design of the project enhance the area."

The current design bar is set by the truck stop, which could be the only casualty of development in what's still considered the boondocks of the Las Vegas Valley.

Vegas condos become a construction gamble

Developers feel the heat as material costs rise and the skilled work force declines. Several high-rise projects have stalled.
By Kathleen Hennessey
The Associated Press

LAS VEGAS -- The glossy brochures promised rooftop gardens and posh European spas. Private basketball courts and butler service. The Las Vegas Strip and billions of dollars of hedonism just past your uniformed doorman.

Such is the stuff of high-rise living in the imagined vertical Las Vegas -- billed as the next sexy center of condominium living, a 21st century Manhattan or Miami, and an antidote to the sprawl plaguing lesser Western cities.

But developers' lofty dreams have met with some not-so-sexy realities -- the cost of cement and copper pipes, a shortage of skilled labor and contractors, competition from deep-pocketed casinos.

By most accounts, the skyrocketing costs of materials and labor have toppled some high-profile luxury condominium projects, turning the market skittish. At least six projects have publicly folded or stalled in a little more than a year, a fraction of the more than 100 once proposed, but enough to make some real estate watchers declare a bust to the boom.

Many in the Las Vegas condo market describe the situation as more of a breather. Seventeen high-rise condominium projects are under construction, they note. Although about half are filled with a time-share hybrid called the condo-hotel, the others are filled with residential units that are 90 percent sold, real estate analyst Richard Lee said.

"What we're having here isn't a demand constraint," he said of the failed projects. "It's a situation that nobody predicted. The No. 1 problem is construction costs and lack of skilled labor."

The price of steel, diesel fuel and concrete, along with such materials as pipes and wiring, has driven up the costs of building a high-rise tower, said Ken Simonson, chief economist for the Associated General Contractors of America.

The cost of a cubic yard of concrete rose from 10 percent to 15 percent last year and will see a similar increase in 2006, he said. The average cost for diesel fuel used in construction trucks is up 36 cents a gallon from last year. The cost of gypsum, the main ingredient in wall board, rose 42 percent since 2004, and copper used in wiring and fixtures rose about 70 percent in two years, Simonson said.

"We'd have to go back to the '70s to see prices that were rising so rapidly," he said. ."

At the ground level, it means the estimated 25,000 cubic yards of concrete needed for a 15-story tower costs $625,000 more today than it did two years ago.

In the case of Related Las Vegas' canceled "Icon Las Vegas" towers, a highly anticipated collaboration of two experienced developers, those prices were locked in when the units were sold. While a lawsuit over views stalled construction, building costs nearly doubled and ate into potential profit, said Related Las Vegas President Marty Burger when he scrapped the project in January.

Even one of the most successful high-rise developers in Las Vegas, South Florida-based Turnberry Associates, has had to absorb costs, although the company got into the market before land and construction costs took off, said John Riordan, vice president of sales.

But materials are only part of the hurdle, Riordan said. "It's little things -- the cost of an electrician," he said, explaining Turnberry's choice to use union workers to "add to the quality."

Plumbers, electricians and ironworkers are hot commodities for union and nonunion jobs. Subcontractors say they've held back from bidding on projects for fear of not getting the labor. Their biggest dilemma isn't winning the bid, but staffing the bids they win.

But developers say it's the general contractors and subcontractors who reap the benefits of the shortage. With more work than they can handle, contractors can name their price and be choosey.

Of the few capable of doing the work required for a high-rise, many are tied up on the massive and continual casino expansion projects on The Strip.

Generation-Xers and the Urban Lifestyle Sweep Las Vegas Real Estate Market

With Las Vegas real estate developers constantly raising the stakes, high-rise condos are the hottest ticket in town.

Las Vegas, NV (PRWEB) February 7, 2006 -- Las Vegas is a young town. And now more than ever, residents are seeking the urban, upscale lifestyle.

Lofts, live-and-work studios and (most of all) high rise condominiums are quickly becoming the most sought after real estate in Las Vegas. Especially for young professionals. Rather than being stuck in Las Vegas traffic, they’re opting to invest in real estate right on the Las Vegas Strip.

Las Vegas is famous for its attractions and amenities, so it’s easy to understand the desire to live in a condo right in the middle of it all. First class hotels, endless choices of restaurants, casinos and nightlife… they can all be within easy reach for those lucky enough to find an affordable loft or high-rise condo in Las Vegas.

Choices abound for those seeking the urban Las Vegas lifestyle. One example is the Allure, at Las Vegas Boulevard and Sahara. Due for completion early next year, this development consists of two 40-storey towers. Residents will have access to pools, private cabanas and many other attractions. There are 15 floor plans to choose from, many with great views of the city.

Another real estate development that’s captured the attention of the young and upwardly mobile is Club Renaissance. This 58-storey residential tower within walking distance of downtown Las Vegas will become home to 800 units. Prices start at $149,900 and each condominium will include full membership to Angel Park golf club, plus many other amenities.

For those looking for the ultimate Las Vegas condo, there’s Park Towers. With prices ranging from $900,000 to $5,000,000, this development redefines “luxury”. Aside from the expected amenities like whirlpool spas, 24-hour concierge and valet parking, Park Towers boasts a Hollywood-style screening room and a climate-controlled wine cellar providing each resident a private section.

With Las Vegas being the nation’s hottest real estate market, the options available are truly staggering. But the best listings often sell before they’re even advertised. To approach such a market by picking up your newspaper’s real estate listings and hopping in your car, is to set yourself up for a great deal of confusion and disappointment.

For the assistance of an experienced Las Vegas real estate agent, call Michele Sullivan at 702-860-8995 or 702-403-6007. Or visit [NewVegasHomeFinders.com. They’ll work with you to find the perfect Las Vegas Condominum.

Vegas Condos Go Cold

Developers are suddenly scaling back their bets on the town's once sizzling luxury real estate market
By SONJA STEPTOE/LOS ANGELES

Posted Wednesday, Jan. 25, 2006
Now that several high rollers in the Las Vegas condo-hotel game, with properties linked to the likes of Michael Jordan and Ivana Trump, are either folding or selling their holdings, a growing number of players are losing their taste for big bets on high-rise residential real estate development.

Over the past two years, as high-rise fever spread across town, prices for the luxury apartments ballooned, fetching as much as $500 to $1,000 a square foot—or up to $1.5 million for a one-bedroom— at the peak. Buyers, mostly interested in flipping them for quick profits, eagerly anted up five-figure down payments, while developers planned more than 70 luxury towers holding a total of about 43,000 units on or near the Strip and downtown. But the intense competition for the city's limited supply of contractors sent construction costs skyrocketing 30% last year, just as lending policies tightened, interest rates climbed and sales started to slow.

Currently, just 18 projects are under way, and nervous developers have called off three high-profile projects over the past seven months. A number of others, including one backed by a group including George Clooney, are being either revised or postponed. Experts now forecast that only a quarter to half of the six dozen originally proposed projects will ever be built. Brian Gordon, a principal at Applied Analysis, a real estate research firm, says the developers with experience building luxury high-rises, whose properties are located on or near the Strip and carry a strong and recognizable brand name— such as Donald Trump, Hard Rock and MGM Grand— are the ones playing winning hands in Vegas now.

Back east, the luxury condo markets that have had similarly explosive growth in Miami and New York, where high-end apartments can command from $2,000 to $4,000 a square foot, haven’t slumped yet. Still, experts say the abrupt reversal of fortune in the desert, where the mainstream residential real estate and hotel markets are still quite healthy, shows just how quickly the odds can change in even the most affluent markets if runaway speculation and overzealous development take hold. “It’s another case of irrational exuberance,” says John Restrepo, head of a Las Vegas real estate and economic consulting firm. “There is a market for high-rise condo hotels here; but it’s not as deep as people thought it was. The days of the two guys from the East Coast or Canada coming into town and promoting a condo development with a website and a dream are over.”

It’s a Condo, It’s a Hotel, It’s a Las Vegas Condotel

The hottest new properties in the Las Vegas Real Estate market are the new "condotels." Part hotel, and part condominium, these lavishly furnished units are leased out when the owner is not in residence.

Las Vegas, NV (PRWEB) November 30, 2005 -- Some of the hottest properties in Las Vegas are the new “Condotels.” A cross between a condominium and a hotel suite, the condotel is a lavishly appointed and fully-furnished condo with a difference: when the owner is not in residence, an on-site leasing agent rents the condominium out to hotel guests for the local Las Vegas casinos.

The attraction for real estate investors and occasional residents is obvious. Rather than having to deal with tenants (or even worse, letting your Las Vegas condo sit empty much of the year) you can relax, knowing condo is being properly managed and providing ongoing income. And when you visit Las Vegas, you needn’t bother with a hotel: you’ll have your own Las Vegas condo, often right on the Strip.

The demand for these income-generating Las Vegas condominiums is so high, they’re often sold out before ground has been broken. Great examples of these hot new Las Vegas condos / hotels include Aqua Blue, Palms Place and the incredible 2,400 unit Cosmopolitan.

The real estate market in Las Vegas is beyond impressive – it’s downright bewildering. To save a lot of money and heartache, it’s now more important than ever to deal with a professional real estate agent. This is especially true when faced with the added complications presented by a hotel/ condominium.

Las Vegas' condo boom comes with layer of glitz

September 26, 2005

THE LOS ANGELES TIMES

LAS VEGAS - The boom in high-rise condo projects in this city's canyon of casinos known as the Strip has spawned its own new status symbol -- the celebrity resident.

About 8,000 condominium units are under construction or about to start, according to SalesTraq, a Las Vegas real estate information company. It's a building explosion fueled in part by speculators in the torrid real estate market here and the desire of buyers from California and Asia to own a piece of Sin City's action.

But like everything Vegas does, this building bonanza comes with an extra helping of glitz: Developers are using Hollywood stars to make their projects stand out from the more than 100 residential skyscrapers proposed for Las Vegas.

Leonardo DiCaprio and Tobey Maguire have purchased units at the Panorama Towers complex. Jessica Simpson has reserved a unit at Palms Place, the 50-story high-rise planned at the Palms Hotel and Casino. Baseball Hall of Famer Reggie Jackson has snagged a spot at the Icon Las Vegas.

"I am sure these celebrities are getting very good deals," said Peter Dennehy, senior vice president of Sullivan Group Real Estate Advisors in San Diego. "It is a marketing thing. People want to live near the stars."

But some analysts wonder if the market will be left with a Las Vegas-sized hangover in the form of a real estate bubble fueled by the large number of speculators -- estimated to be as high as 40 percent -- who never intend to live in the units they are buying. The high-rise condo market has proved to be particularly sensitive to market gyrations, said Delores Conway, a University of Southern California real estate economist.

Las Vegas isn't the only town that is going vertical. High-rise living, a long-standing tradition in New York, has spread to the likes of Boston, Denver, Miami, San Francisco and Kansas City, Mo. At least half a dozen new Southern California condo towers are planned for the Los Angeles area.

Nationally, the number of condominium and townhome development construction starts jumped 38 percent to 120,000 last year, according to the U.S. Census Bureau. And that came on top of a 23 percent gain in the previous year.

"Cities across the United States are booming with these projects and many of the developments are quite spectacular," said Max Neiman, senior fellow at the Public Policy Institute of California.

Many of the buildings are following the pattern of Miami, where residential towers offer luxury-hotel-style amenities such as concierge service, valet parking, restaurants, fitness centers and spas. Some developments are tailored to unique markets.

Cristalla, a 22-story high-rise residential tower in downtown Seattle, will feature a rooftop dog park.

Much of the demand "is coming from people who want to live in convenient urban settings, near bookstores, jazz clubs, theaters and good restaurants," Neiman said.

But with so many high-end properties on the drawing board, it's easy for a development to get lost in the crowd.

That's where the celebrities come in, assuming the real estate equivalent of a walk-on role: Most aren't investors in projects, but their presence gives condo buyers the hope of an occasional star sighting near the mailboxes.

Gossip and photos

Don't expect anything so crass as celebrity advertising endorsements; Vegas developers prefer the subtle approach, placing tidbits in gossip columns and prominently displaying celeb glamour shots in sales offices.

"It makes a building cool and hip," said Dennehy, the real estate consultant. "You always want to sell lifestyle when you are selling condo projects like these."

There are familiar names behind some projects, too. Donald Trump is building the Trump International Hotel & Tower at the north end of the Strip.

And not to be outdone by her ex, Ivana Trump plans the eponymous Ivana Las Vegas 82-story development nearby.

Typically, high-rise condo buyers are empty nesters who no longer want to maintain a 2,500-square-foot home in the suburbs, said Ross DeVol, a Milken Institute economist.

Boomer market

"There are 80 million baby boomers, most in their 50s, and that's a big market," DeVol said.

Other buyers are young urban professionals without children who want to live in what they consider marquee areas, DeVol said.

Even in Las Vegas, once one of the more affordable real estate markets, no one considers these condos to be inexpensive housing.

A 972-square-foot one-bedroom unit at Icon Las Vegas, the future Reggie Jackson hangout that Related Cos. is building, starts north of $600,000.

"If one of these condos were in the $300,000s, I might do it. It would be nice to be just minutes from work," said Chris Dingell, a senior planner with Clark County. "But I can't afford what they are asking for the units on the Strip."

But for those with the money, the towers, with their luxury amenities and chic granite-and-wood fixtures, hold an allure even at prices that range from $500 to $1,000 a square foot.

"With the poker boom, I find myself spending at least three months a year in Vegas and we needed a home there," said Barry Greenstein, a resident of Rancho Palos Verdes south of Los Angeles and professional poker player.

Greenstein paid $1.2 million for a 2,300-square-foot unit on the 16th floor of the first Panorama tower because of its proximity to the Bellagio, where he won $215,969 in a World Poker Tour no-limit Texas hold 'em event last year.

"Some of the other high-stakes players are moving into that building, so we will have a little community there," he said.

Although his job is unusual, Greenstein is typical of many people who are plunking down 20 percent deposits for Las Vegas condo units. Few are eager to call the Strip their permanent home.

"I plan to go every couple of months. Although I am not a gambler, I enjoy the excitement of the city," said Doug McCafferty, a real estate broker who lives in Orange County, Calif. He purchased a $346,500 studio unit at the Residences, a joint project between high-rise builder Turnberry Associates and MGM Mirage at the MGM Grand Hotel & Casino.

Sold in 90 days

McCafferty bought into the project's first tower, which opens next year and sold out in just 90 days. The Residences has sold out a planned second tower and half the units in a third.

"There seems to be an insatiable demand for condominiums in Las Vegas right now and it hasn't slowed," said Marty Burger, who heads the Las Vegas operations for New York-based real estate developer Related Cos.

A veteran of 35 projects in greater Miami, Related quickly peddled all 248 units in its planned Icon tower between the Strip and the Los Vegas Convention Center. Business was so good that the company has launched a second tower and has sold all but 100 of its 268 units well before it will break ground.

Donald Trump's 1,283-unit condominium project sold out in just five days after it was announced in December.

Burger said that as much as 60 percent of the buyers at the Icon tower were Californians purchasing vacation homes. But he and other developers concede that a large percentage are real estate brokers and other speculators attempting to lock up positions with the expectation that they can resell at a profit.

Janine Hogg, a San Francisco Bay Area transplant who owns a smoothie shop in the Las Vegas suburb of Summerlin, has placed down payments on four condos in three projects and is considering purchasing a fifth.

"Real estate investments are my retirement strategy," Hogg said. "Hopefully I am not gauging the market wrong."

Las Vegas real estate analyst John Restrepo estimates that speculators such as Hogg make up as much as 40 percent of the market. This has prompted some of the projects to limit purchases to one per person and to require buyers to close escrow before allowing a unit to be resold.

The number of investors in the Las Vegas condo market should be a matter of concern to both developers and other buyers, said Conway of USC.

"Las Vegas prices are not going to go up forever," she said, "and when the market shifts, a percentage of speculators like that is enough to change the price of all the units in the building."

Speculators tend to liquidate their positions quickly if their investments are losing money or aren't producing the expected returns, Conway said, sending prices tumbling.

But some real estate experts say the unique nature of the Las Vegas market helps insulate it from the type of steep downturn seen in other markets.

The city is running out of developable land, and people continue to pour into the region, said Steve Bottfeld, an analyst with the local research company Marketing Solutions.

Moreover, with 38 million visitors annually, the city remains one of the nation's top vacation destinations and will maintain its attraction for second-home buyers, Bottfeld said.

Finally, no one expects all the projects on the books to get built.

"There's not enough skilled labor in this town to build even half of what has been proposed," said Richard Lee, a vice president in the Las Vegas office of First American Title Co.

Even more circumspect is developer Irwin Molasky, whose Park Towers opened in 2001, demonstrating that Las Vegas was a prime market for luxury high-rise condos.

"I don't think more than 25 percent or 30 percent of the proposed projects will get built," he said. "Building these high-rises are not for the faint of heart."

LAS VEGAS CONDO CONVERSION RATE AMONG HIGHEST IN U.S

By Hubble Smith

Las Vegas Review-Journal

RISMEDIA, April 28 – (KRT) – Las Vegas has become one of the major condo conversion markets in the country with an 8 percent share of the $6.5 billion in conversion volume among 10 major metropolitan areas, a report from Marcus & Millichap Research Services shows.

The combination of low mortgage rates, significant single-family home appreciation and the rise in demand for condo units led to a sharp increase in conversion activity.

More than $9.2 billion worth of large apartment properties slated for conversions changed hands in select markets last year, up from $2.1 billion the previous year, the report said.

Some 17,000 apartment units in Las Vegas are projected to be converted to condos, said Dennis Smith, president of Home Builders Research. About 7,500 are being actively marketed as condos and 10,000 are proposed to be converted.

They're priced from $120,000 to $250,000 for a unit with a garage, an affordable alternative to the $304,734 median new home price, factoring out condo conversions, Smith said.

Last year, 249 major condo conversion transactions closed in select markets across the nation, up from 80 in 2003, Marcus & Millichap reported. All apartment and condo conversion figures are based on sales of properties priced at $5 million or more.

Activity continues to heat up, with an estimated 70 large conversion properties in these markets trading during the first quarter this year, more than double the number from a year ago.

Nearly two-thirds of the transactions were concentrated in Southern California and Florida. Miami and San Diego had the lion's share of dollar volume, with 24 percent and 22 percent, respectively.

"This is a new trend for Las Vegas," said Christopher LoBello, regional manager for Marcus & Millichap in Las Vegas. "What's driving it is low interest rates and demographics of the people that are buying these condos. They don't want to deal with the maintenance of a home. A lot of retirees are stepping up and buying these because they're more cost-effective than a home."

Las Vegas is getting more national exposure as demand for condos continues to accelerate, LoBello said.

The median price per unit for major conversion properties is $130,000 this year, up slightly from $129,000 in 2004. Prices are expected to rise substantially in the second quarter based on prices for properties under contract.

LoBello said condo converters have snapped up large apartment complexes in Las Vegas that were either already mapped as condos or meet condo specifications.

"Now they're bought up, so we're seeing people buying apartments willing to rent them until they get the necessary requirements for conversion," he said.

One of the difficult tasks for investors looking to hold is verifying income of a rental property, said Donna Coquilla, a broker with Lee & Associates in Las Vegas.

"When you hold a building, as opposed to converting, you want to look at net operating income and make sure it jibes with the price, make sure the income is high enough that you don't end up with a low cap rate," she said. "Generally speaking, if you get a substantial apartment building that's been well maintained, you should be able to come out okay."

Investors should examine lease arrangements and check them against the seller's receipt books to make sure there are no hidden concessions such as several months of free rent.

"If you have 400 leases, you've got to go through every one of them. That's part of your due diligence," Coquilla said.

Copyright © 2005, Las Vegas Review-Journal

Distributed by Knight Ridder/Tribune Business News.

Las Vegas Condos - Make Sure Your High Rise is Low Risk!

Las Vegas is rapidly being "Manhattanized" and the quality Las Vegas high rise developments are appreciating at astronomical rates, but not all projects are well funded and ma

/24-7PressRelease.com/ - March 26, 2005 - There are currently over 100 Las Vegas high rise projects approved by the Clark County Commission and more on the way as developers from all over the world are vying for a spot along the hot Las Vegas Strip. Fueling the Las Vegas condo market are retiring baby boomers who are purchasing second and even third homes in warm climates with low or no taxes, as well as an emerging generation of young urban professionals who prefer the low maintenance high rise as a counterpart to their harried business lives. Fears of overbuilding have been put to rest by millions in market studies showing that only the tip of the burgeoning condo market has yet been realized.

But despite brisk sales, Krystle Sands, a 568 unit luxury high rise condominium project to be built in a premium location on the site of the former Algiers Hotel, has closed its doors and is no longer selling units. The land is adjacent to a parcel zoned for a new hotel and casino already owned by Turnberry Associates, and it is rumored that Turnberry will be purchasing the project and that it is already in escrow. Several previous projects, most notably the Versailles and the Magestic (which has recently reopened), suffered the same fate. And Las Vegas real estate experts predict more to come.

Conversely, investors in the sizzling Cosmopolitan Resort and Casino have already experienced spectacular gains as over 1200 units were sold in little more than a month. And buyers in this luxury project have more windfalls to look forward to as the second tower has yet to be released and the general public is just beginning to realize how incredible the proposed $4 billion dollar MGM City Center directly to the south is going to be.

The difference? Developer Bruce Eichner of the Cosmopolitan had final financing in place before the first units were even put on the market. Eichner had already proven himself previously in both the Miami and New York markets. Investors who placed reservations with Krystle Sands will eventually get refunds on deposits that were held in escrow, but they have lost months of valuable time and possibly over a hundred thousand dollars in appreciation that investors in Cosmopolitan garnered during the same period.

According to Victor Altomare, developer of the Summit, "Unless a residential condo is at $600-$800 per foot, I question the project's viability. Construction costs the same next to the Bellagio or on an old downtown redevelopment site. Although land is expensive, it's content is minor compared to construction costs. A hotel condo needs to be forward priced at $800-$1,200 per foot, or it's just not viable. Land and construction costs are skyrocketing, which inevitably means fabulous capital gains for buyer upon delivery. In the short to medium term (2-5 years) capital gains in Vegas are assured. The risk for buyers is the knowledge, experience and judgment of the developer in forward pricing accurately. The trick for buyers and their estate agents will be to buy in a project where the developer has charged enough in the first place!"

How can would-be investors cash in on the profits? Pick an experienced real estate agent who knows the market and has researched the developers! "We're happy to say that we did not have a single customer in the Krystle Sands development," said local Las Vegas Realtor Judy Campbell of the Tonnesen Team at Prudential Americana. "We had researched the project and were just unsure of the developer's ability to deliver, so we tried to give our clients better alternatives. We were lucky to be able to reserve over 100 units for our customers in the Cosmopolitan so far, and we have more waiting for the 'angle' units to be released, as well as the second tower."

Lofty goals for way east Fremont

Builder hopes tin homes will draw the hip

By J.M. KALIL
REVIEW-JOURNAL

Houston architect and developer Larry S. Davis' nickname "The Tin Man" stems from his signature design: loft townhouses sheathed in brightly colored corrugated steel.

Over the past decade, his progressive architecture has been credited with turning dilapidated swaths of Houston, Dallas and Atlanta into housing hot spots for young urbanites craving live/work spaces with 17-foot ceilings, wood floors and few internal walls.

Now, The Tin Man is headed here.

Davis, 52, said this week that he would build 101 of his patented live/work spaces in downtown Las Vegas.

Crews plan to break ground next month on 30 lofts already approved by the Las Vegas City Council, with completion set for year's end. The Las Vegas Planning Commission will consider initial approval of the 71 other units Thursday night.

But unlike the numerous other loft and condo projects flooding into the city's core as part of a burgeoning redevelopment trend, Davis' lofts won't be just a few blocks from Fremont Street's casino corridor.

Instead, he's going a dozen blocks east down Fremont's hill, past a string of dingy weekly motels into a crime-ridden neighborhood that for decades has been a no man's land for investors.

"When people see these loft spaces, it will spark a change down there," Davis said Tuesday from the Houston base of his company, Urban Lofts Townhomes. "It's going to take nanoseconds to turn this neighborhood around."

City officials say an award-winning, reputable builder pouring millions of dollars into downtown's most dilapidated district is a signal that City Hall's redevelopment push is working.

"This would have been unthinkable a couple of years ago," Mayor Oscar Goodman said. "You hope to have a rehabilitating effect, and this indicates it's happening."

Whatever initial reservations potential buyers may have about prostitution and drug crime in the neighborhood, Davis and city officials are confident that he will have little trouble selling out his metal-skinned lofts because they are priced to move.

A three-story, 2,000-square-foot house with two bedrooms, two bathrooms, skylights, a two-car garage and a small yard will cost about $259,000, or about half the price that condos half that size are being reserved at less than a mile to the east.

"We deal in transitional neighborhoods, so we can get the land cost down," Davis said. "I prefer to give people a real value for their money."

Clark County assessor's records show that Davis acquired the 3.76-acre site for the 71 planned lofts on Fremont near Bruce Street for $800,000, a fraction of what vacant land is selling for in other parts of the city.

"It's an intriguing concept, because what they're doing is combining a lower-cost land site with a lower construction cost, so they can sell these below-market," said Scott Adams, the city's redevelopment chief.

Adams said Monday that he believes Urban Lofts' projects are an indication of things to come.

"East Fremont could represent one of the best frontiers for housing development in the future because the land is still reasonably priced," he said. "It takes some pioneers to get in there and change things."

So far, Davis, who is something of a critics' darling of the urban planning set, has proven himself capable of changing things.

During the last 10 years, he has continually drawn young urban professionals to rundown neighborhoods in Texas and Georgia with the uniqueness of his modernist house style, for which he was awarded a patent years ago.

Inside, the bottom floor is a treated concrete that can be stained cola or black, or left a natural gray, lending a chic industrial feel. The second floor is hardwood, and the third is carpeted. Davis' previous houses have had 17-foot ceilings, but the ones in Las Vegas will be 2 feet higher.

Urban Lofts' corrugated steel exteriors will be perfect for Las Vegas, Davis said.

"Stucco can crack. It discolors. Brick totally retains heat. That's why they make the best pizza ovens out of it. But metal reflects," he said. "As soon as the sun goes down, it's cool to the touch."

In style and technique, Davis' townhouses are painted more like cars than traditional homes. The intense blues, reds and other hues of the exteriors are baked onto sheet metal coated with a corrosion-resistant zinc-aluminum alloy, requiring little maintenance.

"The colors definitely turn heads," said Davis, who has also put up lofts in Houston with colored stripes on the exteriors. "We're not hitting Las Vegas with our stripes yet. We've got to ease them in. I think the council members would've had heart attacks if I'd shown them stripes."

Instead, the council's reaction to Urban Lofts' proposal has been overwhelmingly positive.

"I told him I wanted to pick the colors," Mayor Pro-Tem Gary Reese said.

No one is savoring Davis' projects and the spread of redevelopment they represent more than Reese, the councilman whose ward will house Davis' buildings.

Formerly lifeless tracts of downtown represented by other council members are in the midst of rebirth.

In the Arts District to the south, galleries have opened and the first of several planned condo towers is rising. To the north near the casino corridor, crews are putting the finishing touches on the first phase of a massive furniture mart, and the City Council is considering increasingly ambitious plans for the 61-acre Union Park development.

Meanwhile, the dilapidated eastern downtown district represented by Reese remains characterized by a string of rundown weekly motels and the occasional weed-strewn vacant lot.

So it's not surprising that Reese is nothing short of ecstatic as he discusses the hip, urban lofts coming to two of those vacant lots.

"I've been begging for something like this for a long time," said Reese, who sent city staffers to Houston to discuss the project with Davis and his associates. "It's the most fantastic thing, and I told them I would do whatever I can do to help them out. It's huge for my ward."

Part of the resistance to investment along that stretch of Fremont has been the public nuisance and misdemeanor crime problems there, which prove an almost constant headache to businesses.

About 8:15 a.m. Tuesday near the Lucky Motel across the street from the 30-unit Urban Lofts site, a brunette in a dirty mauve sweater, denim shorts and flip-flops asked male passersby if they "need to be helped out." She would not disclose to a reporter what this entailed but said it would cost $60 and assured "you'll like it."

Just around the corner, in front of the storefront Jesus Is The Answer church, two men sat on a bus bench sipping from cans concealed in brown paper bags and taunting streetwalkers. One eventually rose and went to urinate behind the nearby Family Food Market.

The most common felony in the area are attacks, Las Vegas police statistics show.

Over the last six months, officers have responded to 437 reports of an assault with a deadly weapon in the approximately 25-block area running from 10th to Bruce streets between Odgen and Lewis avenues.

"We're generally getting a lot of disturbance calls there," said officer Jose Montoya, a spokesman for the police department.

Yet business proprietors in the area, such as auto repair shop owner Doug DeMasi and Mabel Murray of Trudi Furs, say police are taking great strides in improving the neighborhood, the result of a push for a crackdown from City Hall.

"It will be safe down there," Mayor Goodman said. "Metro is bending over backwards to make sure of that."

HIGH-RISE FRENZY: Going Up?

Monday, March 28, 2005

The idea of vertical living taking root in Las Vegas

By JOHN PRZYBYS
REVIEW-JOURNAL

When most Southern Nevadans think of residential growth here, the image that usually comes to mind is of single-family homes sprawling out to the edges of the valley in every direction.

Lately, though, residential growth in the valley seems to be heading in another way.

Straight up.

Over the past year, the Las Vegas area has become awash in plans for high-rise condominium developments.

Many of the 40-plus developments that have been announced are being aimed at out-of-town buyers who will use the units as second homes or vacation homes.

However, area developers say area residents also are showing interest in a living option that, until now, hasn't been a significant facet of the valley's residential landscape.

In 1998, John Riordan moved to Las Vegas from Southern Florida to build Turnberry Place, a pioneering example of late-model vertical life here.

At the time, Riordan recalls, most people "felt like it was a mistake that we were making."

Most, he says, figured that "if there was some high-rise demand, it'd be relatively small, and for us to come in and expect to build an 800-unit community -- which is what Turnberry Place is -- we'd never succeed."

"That was not even the naysayers," Riordan adds. "That was virtually everybody."

But Turnberry Place not only sold out, it became a portent of things to come. Now, on the Strip, near the Strip and in downtown Las Vegas, plans for high-rise condos are appearing like mushrooms after a spring rain.

Dennis Smith, president of Home Builders Research Inc., notes that condominiums "have always been a viable product in Las Vegas because it has been a transient market."

What's more recent, Smith says, is "that we are seeing a new kind of condominium project that has been tried and proven in other parts of the country and are new to Las Vegas, that being primarily the high rises, (as well as) some of the new low- and mid-rise products."

What's driving the trend? "The primary reason would be the high cost of land," Smith says.

According to Smith, a chunk of developable land in the northwest that might have cost $50,000 an acre five years ago now would be going for about $600,000 an acre. So, as building out becomes more and more expensive, building up becomes more appealing.

Beyond dollars and cents, the trend toward high-rise living here also stems from Las Vegas' maturation as a city, says George Maloof, developer of the Palms, which plans to break ground on a luxury condominium tower next year.

"It's just part of the overall expansion of Las Vegas -- the maturity of it, the evolution of this town," Maloof says.

In addition, Southern Nevada is becoming home to a universe of new residents for whom high-rise condos long have been an accepted housing option.

Such newcomers are "more comfortable" with high-rise living, Smith says. "If you lived that way in New York, you would be happy to get that kind of product in Las Vegas."

Richard McCann, designer of Loft 5, a 272-unit mid-rise condominium project proposed for Las Vegas Boulevard South at Pebble Road, adds that the valley is "getting a demographic now that is not going to be happy with the sort of Tuscan-style stucco subdivisions that have pretty much filled up the valley."

"You're getting a homeowner now who is tired of the suburbs and wants to get in closer" to the city, he says. "They want to simplify."

Grant Garcia, executive vice president of sales and marketing for Cherry Development, which is building SoHo Lofts, a 112-unit condo complex planned for Las Vegas Boulevard and Hoover Avenue, says the trend also is part of a general, nationwide return to the downtown.

"Not only in Las Vegas but, really, across the country, the move is out of the suburbs and back into the city," Garcia says.

But most of all, Riordan says, "I think the high-rise lifestyle is one that is very appealing to anyone who's had it before.

"It's just a very convenient lifestyle. When they leave here, it's just a matter of locking the door."

Garcia says high-rise luxury condos are popular among baby boomers whose "kids are off to college, or empty nesters who've now got yards and just don't have the energy or time to take care of a yard."

"As baby boomers continue to get into retirement age, there's not a great need to have those (large) homes," notes Michael Mirolla, a managing member of Sandhurst Development, which is building a 40-story condo tower just south of the Clark County Government Center.

Instead of dealing with yard work, pool maintenance and the other hassles of home ownership, Mirolla says, "I can have a turnkey environment with a concierge and a valet and be able to leave my keys with a concierge and say `See you in a week.' "

McCann says he was surprised to see interest in Loft 5 coming from both ends of the demographic spectrum, from young professionals to "a lot of older couples: `We want to sell our house in Summerlin, we want to simplify, we want to move into something that's closer (to town) and not as much maintenance.' "

Clark Seegmiller, principal owner of Seegmiller Partners, co-developer of the 23-story Newport Lofts project at Casino Center Boulevard and Hoover Avenue, says his project even is attracting people who are "buying just to have a place downtown, and they're still going to live in the northwest."

High-rises along the Strip generally are targeted toward out-of-towners. In fact, says Beverly Ann Lacey of Elite Realty, "all of my clients are out-of-state investors.

"They're primarily buying a second home, a third home, a vacation home," says Lacey, who specializes in luxury high-rises. "And they'll buy, maybe, two or three units and keep one for themselves, one to possibly flip, and one possibly to have as an investment property."

But, for projects that are proposed for downtown and off the Strip, some Southern Nevadans seem to be planning for their high-rise homes to become their primary homes.

At the Palms, "we've been getting a lot more locals than I originally thought," Maloof says.

McCann says about half of the prospective buyers at Loft 5 indicate they'll use their condos as their primary residences.

And, at Sandhurst Las Vegas, "we are not taking investors," Mirolla says.

However, Mirolla notes also that seeking full-time residents sometimes involves educating first-timers about the high-rise lifestyle.

"You have to reach out and educate them and sell them on the quality of life, because, to make that move, it's a change of behavior," he explains.

Bruce Langson, president of Langson Development, says Las Vegas Central -- a 1,000-unit condo project on Sierra Vista Drive between Paradise Road and Swenson Street -- is designed specifically for locals who plan to live in their units.

"Almost all of our advertising dollars are being spent here in the valley so we can attract Las Vegans," Langson says. "I'm not looking for investment buyers (or) the second- or third- or fourth-home owner. I'm looking for persons who will consider Las Vegas Central as their primary residence."

However, that means developers must provide to such clients the same sort of amenities -- parks and recreational facilities, shopping venues, restaurants and the like -- found in and around any other master-planned community.

At Las Vegas Central, Langson says, "we are actually offering an entire thousand-home subdivision in a vertical community with enormous opportunities to meet and know your neighbors and feel like you're a part of the community."

Mirolla says Sandhurst Las Vegas plans to offer amenities ranging from cafes to a health club and various green spaces designed to serve as a sort of "urban backyard."

Such amenities, he adds, are key to providing "a social environment, versus having a building with (units) in it."

High-rise living isn't for everybody. The prices of units in the developments that have been announced here currently range from $300,000 or so for a studio to millions of dollars for penthouse units.

And, developers agree, high-rise living wouldn't be ideal for, say, parents who are raising two or three children.

But, for many Southern Nevada homebuyers, high-rise living at least becomes another residential option to consider.

Riordan says many prospective buyers who aren't familiar with high-rise life "look at one of these projects and say, 'This has some merit. It might be a neat way to live.' "

And, Riordan says, "because of all the awareness now that has been created because of all of these projects that have been announced, you do have people looking at it out of curiosity, if for no other reason, who have never even thought of having a high-rise (home)."

Copyright © Las Vegas Review-Journal

High Rises Changing the Las Vegas Skyline

(Jan. 5) -- The look of the Las Vegas skyline is quickly changing as high-rise condominium towers pop-up everywhere. Among the new projects, Donald Trump will build a second 64-story condo-hotel on the Frontier Hotel/Casino property.

Build it and they will come. Developers have known that to be true in Las Vegas for some time, but now that thought is on the rise. It's being called the Manhattanization of Las Vegas -- people choosing to live up rather than out.

Grant Garcia is the executive vice president of the SoHo Lofts being built near Las Vegas Boulevard and Charleston. "We're looking at a December 2005 completion, which makes us the first high-rise in downtown Las Vegas," says Garcia.

The SoHo lofts may be the first, but they definitely won't be the last. Right now, 45 residential high-rise projects are planned along the Las Vegas Strip and downtown. The SoHo Lofts, Panorama Towers and the Hilton Grand Vacation are already under construction. Others like Sky, Krystal Sands and Streamline are enticing potential buyers to place their reservations early.

"We started pre-selling in February," said Garcia. And out of the 120 units at SoHo Lofts, all but seven have been sold. And the high-rise boom is not only attracting Las Vegans, but also out of towners like Vince Karlen.

"Las Vegas is the city that never sleeps and for a young guy and college student it has a lot of appeal," says Karlen. But he's not looking for himself, he came to find his mother a condo and likes what the high-rise communities offer. "The house that we have right now is a bit too big, to much maintenance, so something a little smaller, more manageable is definitely a big advantage," says Karlen.

The question is whether there are enough people, like Karlen, to support so many new high rises. Eyewitness News asked Keith Schwer who heads the Center of Business and Economic Research at UNLV. "The answer to that will be determined by the sources of supply and demand," said Schwer.

Schwer says, for now, it appears demand exceeds supply. One reason is because high rising living is appealing to people outside the valley. Schwer says the majority of those buying condos are out of towners, with lots of disposable income, looking to invest in a second or third home.

Schwer predicts that soon those from other countries will also want to buy a piece of Las Vegas, and that's what the developers of SoHo Lofts are banking on, they have several other high-rise complexes scheduled for downtown.

Not everyone is excited about the onslaught of new high-rise buildings. Three weeks ago, the Las Vegas City Council shot down a proposal to build a 28-story condo project near Martin Luther King and Alta because they said it would not fit in well with the residential neighborhood.

Late Wednesday afternoon, the county commission adopted an ordinance that would control the tallest and biggest high rise complexes. They won't be allowed in residential neighborhoods, only along the Strip, Boulder Highway and the Beltway.

The county hopes to meet again in 60 days for additional changes to the ordinance.

Skylofts Scheduled To Open In Las Vegas

Nov 20, 2004

The MGM Grand announced that it soon will unveil a rare and private sanctuary of sleek, elegant two-story accommodations high above the spectacle that is the Las Vegas Strip. Beginning December 23, the SKYLOFTS at MGM Grand will offer the quintessential Loft environment harmonizing design, décor, ambience and unparalleled vistas.

Through the masterful vision of world-renowned architect and designer Tony Chi, SKYLOFTS embodies an ambience of indulgence and understated elegance wrapped within neutral tones, and graced by rich textural fabrics. Located on the top two floors of MGM Grand, each of the 51 lofts features 24-foot floor-to-ceiling windows providing dramatic views of the world’s most famous skyline from every angle.

Priced from $800 to $10,000 per night, SKYLOFTS will be available in one-, two- and three-bedroom floor plans. Designed to accommodate Las Vegas’ most sophisticated guests, the glamorous SKYLOFTS – ranging in size from 1,400 to 6,000 square feet – will be outdone only by the extraordinary level of personalized service provided by the SKYLOFTS staff.

The customized personal service begins with complimentary limousine airport transfers, the Concierge greeting each guest upon arrival at the resort, pre-registration and In-Loft check-in. Upon arrival at SKYLOFTS, guests are greeted and pampered by their Butler who is available 24 hours a day to meet their needs.

Trained in the art of relaxation, the Butler will provide an array of amenities that can turn the Loft into each guest’s personal spa. The selection will include fragrant bath oils and salts, candlelight, aromatherapy scents, mood lighting and calming music. Also available will be the ultimate in sleep amenities – a selection of pillows, herbal teas and relaxing music to ensure an idyllic night’s sleep. Complimentary luggage unpacking and packing services by the Butler are provided, and include clothing pressing and shoe shine.

Within each Loft, extraordinary custom amenities await each guest, including pre-engraved personalized stationery and business cards; daily fresh fruit, fresh flowers, daily delivery of major national newspapers and Internet editions of hometown newspapers and unique daily morning and evening turndown amenities. Prior to each guest’s arrival, the Concierge will discuss with him/her preferences for stocking the Loft’s custom private bar and preferred selections of exclusive coffees for use with the In-Loft espresso machine.

Surrounded by the most advanced and sophisticated technology, SKYLOFTS guests may create their preferred environment through use of custom-designed remote controls that operate the TV, DVD, radio, draperies, temperature and lighting. Custom-designed Bang & Olufsen and Sony HDTV audio-visual equipment are integrated within each suite, along with 32" LCD monitors at every tub, and televisions placed behind the mirror in each bathroom. "The SKYLOFTS Jukebox" – a customized PC-based music selection also is provided within each Loft, allowing guests to choose their preferred genre.