According to the real estate consultants, the chaos in the high rise market of Las Vegas Valley will persist due to some price resets in order to meet the depressed condition in this product. This summer, the median price of the Las Vegas luxury condominiums was $386,500 , which is 25% lower than last year. With a such low purchase rate, some new owners now takes advantage making a very good profit with sales at the foreclosure price.
In the past couple years, Corus Bank supplied more than $400 million worth of loans for Las Vegas Valley condominium developments, some of it didn’t reach full potential. Based on the reports, this is an opportunity that may result in some quick price adjustments thought Las Vegas Valley. This deal may probably have an effect on Southern Nevada’s luxury condominium market because of the scope and scale of Corus Bank’s local financial participation. Because of this, The Starwood Capital Group recently purchased several high-rise properties in Las Vegas through U.S. Federal Deposit Insurance Corp.’s asset auction of Corus Bank, a unit of Chicago-based Corus Bankshares.
The recent demise of the Corus Bank in the Las Vegas Market was caused by some bad investments it made in the past. According to the reports, the shares of Corus plunged down 98% from their 52 week high of $5.23 per share. Regrettably, last September 15, the Corus was delisted from the Nasdaq National Market.
Local projects financed by Corus include Meridian ($111.3 million), Platinum ($87.6 million), Loft 5 ($56.5 million), Juhl ($106.2 million), Newport Lofts ($67.1 million), Panorama Towers ($236.3 million), Village Green ($60 million), the Residence Las Vegas ($56.8 million), Soho Lofts ($49.3 million), Copper Canyon ($43 million), Boulders at Lone Mountain ($40.2 million), Verano ($39.5 million) and Spanish Palms ($28.2 million) Streamline downtown and One Las Vegas on the South strip.
Being in the casino business for a long time, Steve Wynn, owner of the Wynn Casino and Hotel, knows that having people visit his hotel can be challenging a challenging task. So he did a big move of signing up Garth Brooks to attract people to come to his Encore Theatre, the luxury hotel he opened when the economy was still rock bottom. The tickets for the show would cost $125 and the overall sales for the show could bring him millions of revenue.
Having been offered a fat paycheck, Country Superstar Garth Brooks have agreed to come out of semi-retirement and take a five year weekend residency and shows at the Wynn Encore in Las Vegas starting December 11. This summer, Brooks have already started to kick off his shows by playing two secret shows at the hotel.
Aside from the large amount of paycheck Wynn offered Brooks, he also threw in the ultimate executive perk, Garth Brooks’ very own private jet. Wynn also stated that this private jet will make Brooks honor his promise to Wynn and would also help in making his commute from Oklahoma to Las Vegas faster, comfortable and elegant. According to Brooks, his top of the line, 11- seat Challenger jet has a very cool interior and a great paint job. Above all this, all is well with Wynn and Brooks as Brooks prepares for the kick off of his shows starting December.
According to the experts, the rising unemployment could be one of the key factors to hit the real estate market and an excess of foreclosed properties suddenly jumped on the market could see values drop. One of the cities affected by the price drop is Las Vegas, where the property prices are very low, abundant and has slowly decreased by 58%. Experts also said that the solution in getting a profit is getting high discounts by buying properties in bulk for cash and spending $3,000 to $10,000 in refurbishment, for a swift resale. The real estate buyers are now risking their business if the real estate prices fall again. According to the Las Vegas based real estate investment and development firm, The Montecito Companies, they will begin to buy 100 bank owned properties in the city, some of which they will rent but others they intend to purchase right away before prices start rising.
The S&P/Case-Shiller index of house prices in 20 metropolitan areas rose in nearly 4% in the period. Real estate investors are now taking risks while the property prices are still low, before it slowly go up back to their normal prices. With this development, property investors are now beginning to slowly returning to US property market even though the project are smaller compared to the projects they got years ago.
On the recent meeting of the Las Vegas Real Estate Insider Club this October, some of the guests who has not pre-registered were turned down due to the packed top floor of the Newport Lofts in downtown Vegas. The reason for this was that Las Vegas Mayor, Oscar Goodman, known for his previous stint as being a high profile defense lawyer for the Las Vegas mob was the club’s keynote speaker. Mayor Goodman wowed the crowd with interesting stories about his past clients and with his likeness for the movie industry.
Most of the topics in his talk were geared at the recent status of the real estate business in Las Vegas. According to the Mayor, now that the REO homes are slowly declining, he has figured out that a change in direction is now necessary to provide investor clients with the sustained ability to buy quality investment properties without having the price bid up to levels incompatible with the strong cash flow. He also stated that the number of sales continue to be high since June while the number of foreclosures is slowly going down. In effect, this caused in a shortage situation in the real estate industry. By now, more people are looking to purchase low-priced REO homes than there are homes to sell them. Also, Mayor Goodman added, that, this shows why investors and realtors are facing multitude of offers and bids to acquire home in the past months.
Las Vegas News | webwerks November 11, 2009 | 
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