Las Vegas real estate market report

No, it’s not the latest music group. It’s a new phrase coined by sociologists by combining the three words (yuppies, urban and retirees). Yup, you can trade in your Yuppy card right along with your company badge when you pick up your first retirement check and buy a place in the city.

It seems that these sociologists are studying where people move to when they retire. This study from Wake Forest University was done by a gerontologist who studies people age 60 and older and their migration patterns.

So what the heck does this have to do with Las Vegas real estate? Well according to the Dean at the Erickson School of Aging Studies at the University of Maryland. Retirees want warm climate, ease of mobility, safety, stable cost of living, low taxes and recreational amenities. OK, so do you have to be retired to want all this? I think not!

Surprise! Las Vegas is the number two place that Ruppies are choosing to live, with Phoenix as number one and West Palm Beach Florida as number three. Do you think maybe the Sunbelt is popular?

Let us examine what Las Vegas in its latest transformation has to offer these Ruppies now and in the near future.

Warm climate- There is dry heat and wet heat. Many people don’t like changing their blouse/shirt every 30 minutes and would rather be in a dry heat with less pollen and insect problems. In Las Vegas one can always find a cool (air-conditioned) inviting place to go hang out. After all, Las Vegas was invented because of air-conditioning.

Ease of mobility-

· Roads- Right now Las Vegas is expanding its road capacity almost as fast as it is growing, but it is still falling behind. The State estimates it needs another $7 billion to meet the road expansion needs for the next 10 years. The legislature is working through this issue now. But let’s talk public transportation for a minute. Las Vegas is rapidly integrating the latest public transportation systems to meet the retiree needs.
Double-decker buses- “The Duece”, so this isn’t exactly high tech but it has raised the quality of riders on the CAT (Citizens Area Transportation) System. Where these buses have been deployed many more tourists and middle class working people have started riding these buses with views. It also cuts back on the number of buses needed which means less pollution and traffic congestion.

· Max System- This is a hybrid of a train and a bus. The system combines the platform and pre-purchase ticket concept of a train system. The driver sits in a in an area centered at the front of the hard tired train. Electronic sensors take over the driving when the Max train approaches each terminal allowing for the train to dock within one inch of the platform. The trains have emitting sensors that give them priority with traffic lights, getting the riders to their destination, fast and cheaper than if they drove. Phase I of this system is already partially deployed. Currently a Max System is running from the Nellis Air Force Base to the Downtown terminal for over 2 years. This was the initial test of the system that has been met with great success. It allows for an easy adjustment in Max trains to meet the needs of rider demand. The system is currently in the process of being expanded from the downtown terminal to a new terminal at the far end of Boulder Hwy. in Henderson. Phase II- A proposed new dedicated lane and private road system is in the design phase that will us old railroad right of ways along with special lanes on current streets and include the west side of the Las Vegas strip along the backs of the hotels through downtown art and office districts and extend to the north end of the City of North Las Vegas and South to the City of Henderson. This dedicated Max road system will operate very similar to a light rail system. The roads will have barriers that raise and lower to allow the Max trains access while denying access to regular traffic. The Max trains will have preference when crossing streets allowing speeds of up to 60 mph.

· Monorail- What if you could get off your plane and onto the monorail and ride the monorail to a station near your condo or hotel. That is what is currently in the works. The next extension of the monorail is to the airport. Plans are in place to take it North to Downtown Freemont Street and beyond to Cashman Field with many stops along the way. Monorail officials agreed to move ahead on plans to extend the monorail to McCarran International Airport and resorts on the west side of the Strip. Construction on the $1.3 billion plan could begin as soon as next year and triple the length of the existing system.

· Bullet train- Yep a 300 mph magnetically levitated train every 20 minutes. The city of Victorville, California officials hope to break ground next year with a completion date of 2015. The California transportation Authority wants it extended to Anaheim in Orange County. This will make Disney Land and the beach an easy day trip.
Safety- Manhattanization of Las Vegas is creating high-rise and mid-rise condominium structures complete with high security impounds. Generally, they include 24 hour security guards, alarm systems, surveillance systems, walls and security gates. Their locations are all over the valley with the primary consideration of upscale locations with plenty of shopping and amenities. From a residential home stand point, Las Vegas has many guarded security gate neighborhoods, as well as electric key code gated communities to choose from.

Stable cost of living- We live in the land of the discount everything! From “T” shirts to buffets, Las Vegas has for the most part had a stable cost of living when comparing it to the rest of the U.S. We have had some substantial increases in real estate prices recently, is that bad if you already own a home here? We are going to have additional increases in the next few years due to employment demands and Ruppies.

Low taxes- Gaming pays most of our taxes. Need I say more than Nevada has:

· No personal income tax.

· No corporate income tax.

· No probate tax.

Recreational amenities- How about dinner in the world culinary capitol, shopping in one of the worlds top retail destinations? Catch a Vegas style show, a French Circus, art gallery, museum, or a Broadway Musical. Perhaps a weekend on a houseboat on Lake Mead or a hike in Red Rock Recreation area would be fun. There is skiing on Mt. Charleston and ATV riding in the deserts that surround us. The NASCAR races on the north side of town or 18 holes of golf on some of the world most enjoyable courses. Night clubs, gaming, some of the world best pools, all of which are right here in Vegas. Explore a ghost town, river raft the Colorado, ride a donkey to the base of the Grand Canyon. Or just lay down for a great massage and pampering at a world class day spa. Spend an evening hopping jazz and comedy clubs in the new gaslight district.
If that’s not enough, you’re just minutes away from one of the world great airports with destinations all over the globe.
If you didn’t notice, I did not mention shuffle board, lawn bowling, bridge clubs or the crafts room. These are available here but, many Ruppies are much more active and have better health than any preceding generation in the history of man. You can always catch a poker game or Bingo 24/7 here.

Las Vegas is transforming itself into the new LIFESTYLE CITY FOR THE 21st CENTURY. So, it stands to reason that if you build it, they will come. The Ruppies are coming, the Ruppies are coming!

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.

No Tags

It appears that Edge Group owners of the “W” and former “Las Ramblas” development sites may have their eyes on the short term prize $$$.
With the condo and condo-tel market being dominated by the BIG boys link MGM-Mirage and financing tightening it would seem that one needs to have a lot of liquidity in order to viably play the condo tower game in
Las Vegas.
As I reported yesterday, one of the world’s richest men has stepped up to the plate to buy the well worn “New Frontier.”
Now it appears another real estate developer from
New York (name unknown) is making an offer on the 50 acres owned by Edge Group.
The Morgan Group that currently owns “Hard Rock Hotel/Casino,” directly east of this site, recently announced their expansion plans to begin immediately. But there are other plans for what is called the Harmon Corridor including infrastructure and street widening.
The Alexis Park hotel still has plans in place for its renovation but no action yet.
The site of the Harley Davidson Café on the corner of Harmon and
Las Vegas Blvd.

also as drawings for the “Metro Flag” project, but no movement yet on that project.

However, with the transformation of the “Aladdin” into the “Planet Hollywood” this group has started construction on 2 hotel-condo towers on the north east corner of Harmon and
Las Vegas Blvd.
And the
MGM
Project
City
Center on the Southeast corner of Harmon and

Las Vegas Blvd.
is well underway as it Cosmopolitan Mega Resort on the North West corner and just south of the Bellagio.

One of the major problems with growth on Harmon right now is a traffic problem. There are current improvements taking place on the streets east of Koval that include Paradise (Hard Rock is on the corner of
Paradise and Koval). These improvements are aimed at improving the infrastructure and widening the streets from 4 to 6 lanes. The widening and improvements from Koval west to the strip will not occur until after the completion of the $7 billion dollar MGM’s
Project
City
Center in 2009, because of the traffic problems that would be cause by earlier development of that section of the street.
With the price of property almost doubling again in the last year for gaming zoned land near or on “The Strip,” look for the density of structures to increase considerably per acre.
It’s going to take well capitalized experienced developers to play the
Las Vegas condo and casino game in the future. Many of the smaller casinos are being snatched up by private equity groups. Some of the larger casino stocks are being bought out by private equity groups so that they can make the necessary improvements to the properties that will hurt their quarterly or yearly profit picture (something the brokers on Wall Street dump stock for) because they can see the potential of the long term growth and profit in these facilities.
I failed to mention it yesterday. Did you know that Donald Trump has his Atlantic City Casino’s up for sale? Maybe he’s trying to raise a little cash so he can play in
Las Vegas real estate with more than 2 ½ acres off the back parking lot of the New (old) Frontier?

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.

No Tags

One of the world’s richest men Yitzhak Tshuva, a billionaire from Israel, is negotiating with Phil Ruffin to buy the New Frontier Casino (built in 1942) in Las Vegas. The deal is estimated at $1.5 billion dollars and will require another $400 million to renovate the project. The only plans the new owner has disclosed so far is that the current tower could become a set of luxury apartments.

Phil Ruffin, the current owner, has been waiting for the correct financing to execute plans to turn the casino into a Swiss style resort. He’s been waiting about 2 years so far. My guess is that it may be more risk than Mr. Ruffin cares to take right now. This is a great way for Phil to go as it relieves him of having to risk the redevelopment of his property.

For Mr. Yitzhak it is also a wonderful opportunity:

· With last weeks implosion of the old Stardust to make room for the new Echelon Place next door to the north of the New Frontier Casino.

· With Steve Wynn building his Encore Casino and his current Wynn Casino across the Street.

· With Mr. Trump building his luxury towers directly behind the New Frontier.

· With the New Palazzo Casino kitty corner from the New Frontier.

· With the recently completed Fashion Show Mall major expansion and renovation next door to the South of the New Frontier.

This is a large parcel of property that I am sure will be developed by Mr. Tshuva to its fullest. I would think that very possibly Mr. Trump figures somewhere in this deal. Mr. Trump bought a large block of stock in the Riviera Hotel and Casino several years ago which required him to obtain approval from the Nevada State Gaming Board. It is widely know that “the Donald” has wanted to add a Las Vegas casino to his portfolio. It is also widely known that Mr. Ruffin does not do partnerships well. Mr. Tshuva is the owner of the Plaza Hotel in New York. Do you maybe think the Donald is playing real estate chess?

If this deal goes through it may very well be that the condo values and price of Trump Towers Las Vegas will go up. With a new first class casino property right next to the towers, it can’t help to improve their value.

Fare well old Las Vegas. Elvis would hardly recognize it.

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.

No Tags

As detailed in this article from Casino City Times. I seems many of the Las Vegas top market experts agree with my prediction that the North Strip is about to get the same renovation as the Mid-Strip.

There is also a flurry of activity taking place on the New South Strip with the new construction of the Southern Highlands Casino and Hotel . The South strip as been in the past not much more than a road on a strip of dirt. The glowing success of the South Shores Casino (previously South Coast) that is now a little over 1 year old and growing fast. The Gaming industries Eyes have been opened to the possibilities of less costly vacant land with much more potential for growth. Condo companies have been purchasing parcels and are building now on some of this land which is rapidly transforming from dusty lots to a modern urban area. Watch out you are about to see an explosion of Casino development on the South Strip. And that’s my next prediction.

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.

No Tags

The Morgans Hotel Group have finally announced their partial plans for the Hard Rock. But in those plans are no mention of the previously planned Condo/hotel rooms that previous owner Peter Morton had designed. But take hart the expansion is only going to use 8 acres of the 23 acre land parcel. They say they are still evaluating what to do with the remaining 15 acres of available land.

The expansion will involve the addition of approximately 950 guest rooms which includes a new 15 story tower on the property. The Hard Rock will also add 60,000 square feet of convention space, 35,000 sq. ft. of Casino space, 30,000 sq.ft. of new retail and a new health club and spa. This construction is scheduled for completion mid year 2009.

Besides the new they are renovating the old including the guest rooms, restaurants, bars, retail shops and common areas, and their putting in a new ultra lounge and poker room (about time). The remodel begins immediately and will finish the first quarter of 2008. They also are enlarging and renovating the pool !

The price tag for this major renovation and expansion is approximately somewhere in the big neighborhood of $150 million. The financiers have committed up to $600 million for the total Hard Rock renovation and expansion which would include the adjoining 15 acres not yet developed.

This announcement has substantial positive impact on the Related Groups property (The “W” hotel) which sits between The Hard Rock and “The Strip.”

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.

No Tags

Finally it has been announced that Stockbridge Real Estate Funds and SBE Entertainment Group LLC have an agreement with Gordon Gaming Corp. to purchase one of the last of the original remaining casinos on the Las Vegas Strip. The Sale also includes the 17+ acre parcel of vacant land across the street from the Sahara. This will probably mean that this parcel will finally be developed and spur further new real estate growth for the north end of Las Vegas Blvd. Other real estate development that is planned in the area:

Directly south of the Sahara on the old “Wet & Wild Water Park” site developers are moving forward with plans to build the tallest building in the Western Hemisphere. This will be a hotel/condo and casino called the “Las Vegas Tower”.

Next door, to the south, the old El Rancho casino site is being developed by Turnberry into a modern condo/hotel casino called the Fontainebleau at a cost of $1.5 billion on part of this 25 acre site.

Across the street form the Sahara on the west side of Las Vegas Blvd. is the parcel of vacant land that is apart of the Sahara sale. To the south of it is the Hilton time share tower that was finished in 2004.

Next door to the south of that is Sky Las Vegas which is completing finish work of its new residential high-rise luxury tower.

To the South of Sky Las Vegas is the Maxim hotel/condo, casino which has site approval on a parcel between Circus Circus and Sky Las Vegas. Maxim is planning a $1.2 billion dollar structure with opening around 2010.

To the South of Circus Circus on the old Stardust Casino site, demolition has started in order to develop Echelon Place. This complex will have 5,300 rooms and cost over $4 billion dollars.

To the Northwest of the Sahara is a two tower residential condominium project that is under construction called Allure.

In other important developments, the Las Vegas monorail expansion to the airport has been approved by Clark County. This monorail terminates at the back of the Sahara Casino. This will allow airport passengers to skip the cabs and traffic and get to their hotels on the strip much faster and cheaper! The expansion is expected to be completed in 2011.

The Riviera is being purchased and rumors include a major renovation plans as a nostalgic restoration to keep the old Vegas theme alive.

To the South of Riviera on the old “La Concha hotel” site Conrad Las Vegas / Waldorf Astoria Residences are planned as a single tower structure to be built by Hilton. This site has already been mostly cleared. The La Concha lobby which was designed by the famous architect Paul Revere Williams in 1961 was donated and moved to the site of the Las Vegas neon museum to be preserved for future generations.

The Stratospher on the north end of the strip has several acres to its north and accross Las Vegas Blvd. It has not anounced any expansion to date but stay tuned.

What does all this mean to all us little guys? It means that over the next 5 years the OLD north strip is about to become the NEW and improved North strip and the values of anything that you can purchase now will most likely sore in value as these developments are completed and more are planned.

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.

No Tags