September 30, 2005
-
Luxury condo projects outpace demand
Luxury condo projects outpace demand
BY TONY ILLIA
BUSINESS PRESS
There were 93 luxury condominium projects, totaling 175 towers and 47,590 units, proposed, planned or under construction in the Las Vegas Valley during the second quarter, reports Applied Analysis, a local research firm. By contrast, there were only 29,248 new homes sold last year.
“There is insufficient market demand to absorb all of the units currently in the development pipeline,” said Brian Gordon, principal of Applied Analysis. “We estimate that between 30 and 40 percent of the projects currently planned will be developed during the next eight to 10 years.”
Location, branding and experience will be key components for a project’s success. Developers with established track records like Related Las Vegas, Turnberry and Donald Trump should do well, while others may struggle with reservations, hard sales and financing.
Although only four developments totaling 1,600 units have been built to date, another 15 projects totaling 9,800 units are now under construction. Projects in progress include The Residences at MGM, a $1.2 billion, 3,500-unit condo-hotel complex being jointly developed by Turnberry Associates and MGM Mirage at the northeast end of MGM Grand’s 116-acre property.
Sam Cherry’s $61 million, 120-unit SoHo Lofts at Las Vegas Boulevard South and Hoover Avenue is nearing completion and the $325 million, 350-unit Sky Las Vegas near the southwest corner of Las Vegas Boulevard and Sahara Avenue has broken ground.
Andrew Sasson and Laurence Hallier’s 616-unit Panorama towers at Harmon Avenue and Industrial Road is well underway, and Del American is busy at work on the first phase of Vegas Grand, a 426-unit condo complex at Swenson Street and Flamingo Road.
Meanwhile, Randall Davis’s 21-story, 71-unit Metropolis tower at Debbie Reynolds Drive and Desert Inn Road is scheduled to debut in November.
“The level of planned investment in the Southern Nevada market is remarkable and continues to grow,” said Jeremy Aguero, principal of Applied Analysis. “That having been said, we are somewhat cautious about the realities that exist between perceived and actual demand for these units.”
PROJECTS
Blanchard & Hoffman Construction recently broke ground on a new $8.72 million, 2.7-acre outdoor events plaza at 200 Water Street in downtown Henderson. The public facility features a 4,000-square-foot shaded canopy amphitheater with tiered seating for 400 people, plus a Veterans Memorial wall and a water entertainment area. There is also 22,000 square feet worth of unique event space, 4,000 square feet of open space with a shade canopy, and a 3,000-square-foot entry portal canopy. The Plaza is expected to generate $20 million annually in non-gaming revenue from special events, including ArtFest and St. Patrick’s Day. Designed by HCA Architects, the new facility additionally features lighting, power and parking for 400 vehicles. The Plaza is expected to open by May 2006.
Marnell Corrao Associates recently completed the new $52 million, 142,000-square-foot Nevada Cancer Institute at the southwest corner of I-215 and Town Center Drive. The three-story steel-framed building houses outpatient services, research labs and physician offices. A future expansion is planned with a Medical Campus.
Quinn Development and Construction is building a new $4.7 million, 35,000-square-foot office park at Cameron Street and Post Road. Cameron Commons consists of two buildings, one 8,400 square feet and the other 26,600 square feet. Designed by Jawa Studios, the two-acre office park is scheduled to open in the first quarter of 2006.
Roche Constructors is building a $4.3 million, 57,800-square-foot Vons at 45 E. Horizon Ridge in Henderson. The new grocery store is scheduled to finish Dec. 31, 2005.
Summit Builders has begun construction on The Onyx — a four-story, 63-unit condominium building at Duke Ellington Way and Reno Avenue, just east of the Strip. San Diego-based Crestone Cos. is the developer. Residences range from 774 to 2,279 square feet, with prices starting in the high $500,000s. Designed by Perlman Architects, The Onyx is scheduled to finish in mid-2006.
MILLION-DOLLAR DEALS
LB/VCC Las Vegas LLC bought 8.37 acres of land at 6721 S. Eastern Ave. in Las Vegas for $3.78 million from Eastern 17 LLC. Insight Realty Associates’ Jim Zeiter and Danny Mulcahy represented the seller.
MTS Incorporated dba Tower Records signed a 10-year, $3.18 million lease for 14,053 square feet of retail space in the Galleria Mall, 611 Mall Ring Circle in Henderson. Colliers International’s David Grant and Scot Marker represented the tenant.
Gambro Healthcare signed a 10-year, $1.32 million lease for 6,470 square feet of office space in Westland Plaza, 2110 East Flamingo Road. Colliers International’s Rhonda Panciro and Dean Kaufman represented the tenant, and BlueStandard’s Ed Alegro represented the landlord, Westland Enterprises.
Desert Portable Storage signed a five-year, $1 million lease for 46,080 square feet of industrial space at 3101 Marion Drive in Las Vegas. CB Richard Ellis’ Karolina Janik and Shalonda Hughes represented the landlord, DP Industrial LLC.
tonyillia@aol.com | 702-303-5699
