Condo conversions pump-up new home sales
BY TONY ILLIA
BUSINESS PRESS
October 3, 2005
Condo conversions accounted for one out of five new home sales in the Las Vegas valley last month, resulting in a record high 3,643 new home closings in August, reports SalesTraq, a residential tracking firm. Median new home prices, meanwhile, remained relatively flat at $292,573 for the third month in a row.
Although median condo conversion prices rose to $168,198 in August, reflecting an 11.5 percent, three-month gain, it has kept overall home prices stagnant. Without the conversions, however, median new home prices climbed to $322,964 in August, a 23.1 percent increase over 2004.
" Las Vegas is in a boom period that should continue through at least the first quarter of next year," said Stephen Bottfeld, executive vice president of Marketing Solutions, a housing industry analyst is firm. "But the conversion market is coloring virtually all of the new home statistics." There were 12,865 listings last month, for example, a 10.1 percent increase over last year. It marks the first inventory increase this year -- due, in part, to converted condos. The number of active subdivisions, meanwhile, reached a record 430 in August, one-third more than in 2004. And there were 2,959 new home permits for the month, which is 26.7 percent higher than last year.
There were 5,404 existing home sales in August, a 7 percent increase over 2004, with average sale prices of $280,000, or 12 percent more than last year. Despite this, the sales time for existing homes dropped to only 40 days in August. It marks the quickest sales span this year.
And existing home sales are still getting 98 percent of list price. Existing home sales are currently just 3,400 units short of last year's record pace, which analysts expect to be surpassed in 2005.
"We will certainly break the new homes sales record," Bottfeld predicted. "The effect of Katrina on Las Vegas will result in a migration of displaced workers who need jobs near the end of the year."
PROJECTS
CityMark Development recently unveiled plans for 341-unit, mid-rise condominium complex in downtown called "Juhl." The San Diego-based firm purchased the 2.38-acre city block, and bound by Bonneville and Garces avenues, Third and Fourth streets, in October for $5.2 million.
Project plans tentatively call for six concrete, glass and chrome condo towers from six-to-15 stories tall, with 9,000 square feet of retail space below. Residences range from 600 to 2,200 square feet in size, priced from the $200,000s up to $500,000. Construction is expected to begin next year, with the first units coming online by 2008.
Bovis Lend Lease recently broke ground on two 40-story, glass condominium towers at Sahara Avenue and Las Vegas Boulevard. Developed by the Fifield Companies of Chicago, "Allure Las Vegas" consists of 806 residential units, from 671 to 4,400 square feet in size. Residences are priced from $500,000 up to $4 million. Designed by EDI Architecture, the twin towers are expected to finish construction by 2007. Fifield estimates building costs at $250 to $275 per square foot.
Bovis Lend Lease, formerly Lehrer McGovern Bovis, is best-known for its work as general contractor on the Venetian Resort Hotel Casino, which opened in 1999 to a battery of lawsuits for nonpayment. Although many subcontractors have since gone out-of-business or settled for pennies on the dollar, the omnibus case continues to drag on in court due to a series of appeals from the Strip resort.
In 2003, after a 10-month court trial, The Venetian was ordered to pay $44.2 million in damages to Bovis and its subcontractors. But it continues to file motions that have subsequently delayed any payment.
Consolidated Resorts topped off-construction on the $60 million, first phase of Tahiti Village, a 1,046-room time-share project at Las Vegas Boulevard South and Warm Springs Road. Martin-Harris Construction is the general contractor. The first three buildings will be five and six stories, with 154 two-bedroom units that can be split into 308 one-bedroom units. The first units are scheduled for completion in March. The 27-acre project is expected to generate $1.5 billion in sales.
MILLION-DOLLAR DEALS
Albert Elkouby bought 2.06 acres of land at Sahara Avenue and Rainbow Boulevard for $2 million from Betty Koval. First Commercial's Kevin Buckley represented the seller and Clifford Commercial Real Estate's Sally Rycroft represented the buyer.
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 landlord, Westland Enterprises, and BlueStandard's Ed Alegro represented the tenant.
The Nevada Development Authority signed a 10-year, $1.1 million lease for 4,000 square feet of office space at Marnell Corporate Center, 6700 Via Austi Parkway, Suite B. Marnell Properties' Alan Helms represented the landlord.
Frank and Jennifer Merchat bought a 12,554-square-foot industrial building at 2580 West Brooks Ave., in North Las Vegas, for $1.1 million from Cheyenne I LLC. Insight Realty Associates' Jim Zeiter and Danny Mulcahy represented the seller.
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