Las Vegas Homes

Failed Corus Bank will affect Las Vegas High Rise Projects

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.