Las Vegas real estate market report

Before the Las Vegas City Commission yesterday the developers of Club Renaissance asked for a continuance on its building permits and received another 6 months from the Mayor and City Council. The Project had been 65% sold but was awaiting final project construction bids when the financiers of the project pulled out due to concerns for the slowing condo high-rise market across the country. Club Renaissance has found another financier and is in the process of going through the steps to once again put the construction financing together on the project. It was revealed by Mayor Goodman that a portion of the land the project is to be built on is currently under foreclosure proceedings. The developer explained that the financer of the land had been unreasonable about extending the loan and wanted a 45% premium in order to extend financing. Since the project is going to be financed for construction the developer did not feel that it should pay the exorbitant extension and claims they will complete the new financing prior to the final foreclosure.

Sandhurst was also before the City Commission requesting an extension of its permits stating that the estimated construction costs were $160 million but when the final bid came in last summer it was $200 million causing its financers to withdraw. Since then it has received an amended bid now reflecting a $160 million project construction cost and is in negotiation with a private investment group to fund the project.

Mayor Goodman scolded both developers and suggested that they “keep the City in the loop” concerning their progress and problems. He also stated that the City was there to help them get their projects built, but needed to know what was taking place. He said the City did not want to be kept in the dark concerning the developments taking place concerning these projects. The projects are up for review in six months.

For the Latest in Las Vegas real estate call Max at 702-334-2200. Or email me at:Max@MaxSellsVegas. com. Your comments and questions are welcome.

This entry was posted on Thursday, February 22nd, 2007 at 5:17 am and is filed under Las Vegas real estate news. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.