South 15 Partners Eyes 2 MSF Industrial Complex Near Henderson Airport

By Alex Girda, Associate Editor

In a move that paves the way for development of a 2 million-square-foot industrial complex, the Henderson city council has approved the sale of 150 acres near the Henderson Executive Airport. According to VegasINC, South 15 Partners L.L.C., the developers, paid $13.6 million for the parcel. The project would be the submarket’s first large-scale industrial development in many years.

Led by former homebuilder Terry Manley and Mike Dean, the founder of contracting company M.J. Dean Construction, South 15 Partners will add its newly acquired property to an adjacent site it already owns. South 15 has a neighboring 10-acre site under contract as well. The industrial project would encompass the newly created 170-acre parcel.

Dubbed South 15 Airport Center, the complex would include 14 industrial buildings, including a 300,000-square-foot FedEx distribution center. Groundbreaking is scheduled for spring of 2013.

According to VegasINC, South 15’s plan includes the option of selling individual parcels to end users looking for build-to-suit development sites. When completed, the project could create as many as 2,900 jobs.

Image courtesy of Google Maps.

Excalibur Unveils New Food Court at Castle Walk

By Alex Girda, Associate Editor

From celebrity chefs’ bistros to casual eateries and fast-food restaurants, the Las Vegas Strip offers as wide a variety of dining venues as anywhere in the United States. In a bid to capture the largest possible share of the area’s dining dollars, the Excalibur is expanding its food options.

Recently the MGM Resorts International property unveiled Castle Walk Food Court, which brings together many of the best-known quick-service brands, some of which are making their debuts here. Castle Walk complements the resort’s 3,981-key hotel and 100,000 square feet of gaming space located at the corner of Tropicana and Las Vegas Boulevard.

The new dining spots include:
- Auntie Anne’s Pretzels
- Cinnabon – the first Strip appearance for the baked goods franchise
- Krispy Kreme
- McDonald’s
- Pick Up Stix – the only Las Vegas location for the Asian-themed chain
- Popeye’s
- Pizza Hut Express
- Popcornopolis gourmet popcorn
- Schlotzkys Deli – sandwiches, pizza and salads
- Starbucks
- Tropical Smoothie Café – also features toasted wraps, sandwiches, and salads.

Jump-Starting Stalled Projects Could Revive Development

By Alex Girda, Associate Editor

Las Vegas is searching far and wide for its development future—including in its recent development past. As VegasINC magazine reported recently, a number of large-scale projects that have been stalled for years by the Great Recession may be getting a new lease on life.

Projects like General Growth Properties Inc.’s Shops at Summerlin in the retail sector and Vantage Lofts and Manhattan West on the residential side are among the most recent examples. Although the visibility of these and other projects that were halted in midstream has long been a sore point, their incompleteness could finally be an advantage. If properly preserved, the developments have a head start on construction, thus reducing the time and money necessary for completion compared to a ground-up project. However, hurdles can still crop up, including the determination of whether permitting is up to date and, in some cases, who rightfully owns the property.

Meanwhile, some other high-profile projects await attention.Topping the list are the Echelon, the partially built hotel, casino, retail and convention center complex that has been delayed for four years; and the Fontainebleau, a $2.9 billion, 3,889-key hotel and casino. At 68 stories tall, the property would make a mark on the city’s skyline.

A number of multi-family developments have also lost traction over the years, but the improving residential market could soon start rekindling interest in those projects as well.

Image courtesy of user Lasvegaslover via Wikimedia Commons

Calida Moves to Revive Stalled $350M Manhattan West Project

By Alex Girda, Associate Editor

Four years after its original developer filed for bankruptcy, the $350 million Manhattan West condominium project may be getting new life. The Calida Group is moving to acquire the stalled 700-unit development on Russell Rd., the Las Vegas Review-Journal reports.

Expected to fetch between $21 million and $23 million, the deal was spurred by the comeback of the area’s housing market. For its part, Calida Group is making a bid to join the ranks of Nevada’s most active multi-family developers, according to the Review-Journal. The company’s other major local projects include a 360-unit upscale apartment complex in Henderson.

Manhattan West’s original developer, Gemstone Development, planned a 12-building mixed-use project that was to include 150,000 square feet of office space and 50,000 square feet of retail space as well as 700 condo units. According to the Review-Journal,  the residential units were priced in the $400,000 range, or about $300 per square foot. Floor plans and amenities aimed to emulate Manhattan-style characteristics.

Manhattan West eventually hit financial troubles when Gemstone allegedly found faulty construction work at the site. A dispute with the project’s general contractor, Apco Construction, led to serious funding issues that caused the project’s shutdown.

Image courtesy of lasvegasrealestatehome.com

Dispute Over Harmon Tower Reaches Nevada Supreme Court

By Alex Girda, Associate Editor

The legal battle between MGM Resorts International’s CityCenter project and the general contractor on the troubled Harmon tower has reached the Nevada Supreme Court. According to VegasINC, the representatives of the $8.5 billion development have requested that the court overturn a ruling that would delay the demolition of the $275 million, 26-story Harmon tower.

CityCenter initially announced plans to demolish the problem-plagued tower and cut its losses on August 15, 2011. Clark County District Court Judge Elizabeth Gonzalez put the brakes on that plan in July when she ruled that CityCenter is prohibited from using extrapolation techniques in its attempt to prove that the building is defective beyond any use.

CityCenter made its case by hiring structural engineering expert Gary Hart to evaluate 397 of the building’s main structural elements. Hart concluded that 396 of the components were faulty. Based on his experience, he extrapolated that an additional 1,072 structural elements were compromised. Gonzalez based her ruling on the argument that the 397 components examined by Hart were not chosen randomly.

The Harmon tower has had a difficult history. Problems in early phases of construction reduced the planned number of stories from 49 to 26, eliminating plans for a residential component to the project.

Photo courtesy of user Cygnusloop99 via Wikimedia Commons.

Two Years On, $8.5B CityCenter Seeks to Reach its Potential

By Alex Girda, Associate Editor

Two years after opening in the midst of an economic downturn, MGM Grand’s $8.5 billion CityCenter project is still seeking to reach its potential as a game changer for Las Vegas. To begin with, the investment added 5,900 hotel rooms to the city’s inventory at a time when visitors declined 2.85 million over two years, the Las Vegas Sun reports.

The Sun also points out that out that CityCenter also gambled on luxury, yet in a relatively subdued economic environment, hotel operators were required to offer discounted room rates;  meanwhile, some upscale condominiums continue to sit on the market at reduced asking prices.

Crystals, a 500,000-square-foot retail center, has an 88 percent occupancy rate as the recession has curtailed leasing activity.  Other major components of CityCenter include the Aria Resort & Casino, the 500,000-square-foot Crystals retail and entertainment district, the Mandarin Oriental hotel and condo tower, the Vdara hotel condo tower and the 37-stoy Veer Towers condo complex.

Still, as the Las Vegas market tries to find a way to surmount high-profile mishaps like the stalling of the Harmon tower complex—the subject of a legal battle between MGM Grand and its contractor—a new emphasis on the arts and the resurgence of Downtown likely bodes well for the long term.

Image courtesy of citycenter.com

Home Prices Continue 8-Month Rebound: Realtors Report

By Alex Girda, Associate Editor

Continuing its turnaround, Las Vegas’ housing market has recorded eight consecutive months of increasing prices, a trend fueled mainly by diminishing supply and a record number of short sales, the Greater Las Vegas  Association of Realtors reported..

In September, 3,298 homes, condo units and townhomes changed hands—about 400 fewer than during the previous month. However, the median price increased 1.4 percent from August to September. Short sales accounted for 44.8 percent of transactions in September.

The uptick in pricing reflects a continuing contraction of supply, which declined slightly from 3,830 condominiums and townhomes in August to 3,805 in September. Last month’s figure also reflects an even more telling decline of 7.8 percent compared to Sept. 2011. Homes listed for sale with no pending or contingent offer also dropped 1.0 percent from the previous month.

According to Kolleen Kelley, president of the local Realtors’ chapter, the market should continue to improve provided that the lid stays on supply. “If you look at the asking prices of homes being listed for sale, they’re up across the board by double digits compared to this time last year,” she noted.

Telecom’s Planned Data Center Joins Growing Local Pipeline

By Alex Girda, Associate Editor

In the competition for data center development, Nevada has often come in second to Texas and other competitors. But the Silver State’s reputation as an also-ran in this field may be changing. Telecom Real Estate Services unveiled plans for the Block Data Center, a project that is set to offer 13.8 megawatts of capacity.

According to DataCenterKnowledge.com, Telecom will retrofit an existing 50,000-square-foot building through a two-phase buildout. Part one calls for 10 megawatts of power and four independent 7,500-square-foot suites, each providing 1.2 megawatts of uninterruptible power supply. Telecom expects healthcare companies to be the primary tenants.

Kevin Keating, Telecom’s CEO, explained that tenants may either finance improvements themselves or turn over the work to Telecom for a premium.

Telecom’s plans add to a growing pipeline includes such local projects as Cobalt Data Centers’ planned facilities of 34,000, 64,000 and 388,000 square feet.

Cobalt’s first project, a renovated building on West Cheyenne Ave., is scheduled to open in December, VegasINC magazine reported.

Image courtesy of blockdatacenter.com

Caesars Entertainment and Caruso Affiliates Announce First Wave of LINQ Tenants

By Alex Girda, Associate Editor

Caesars Entertainment has revealed the initial lineup of restaurants, retailers and entertainment venues for the LINQ, its $550 million open-air district scheduled to open on the Las Vegas Strip in late 2013. The tenants will join such previously announced attractions as a giant Ferris wheel.

Leading development at the 300,000-square-foot property is Los Angeles-based Caruso Affiliated, which developed The Grove in Los Angeles’ Fairfax District a decade ago. Caruso also helped select the tenant mix for the LINQ, which is targeting the 21-to-46 age group. Its location on the Strip is expected to benefit from annual foot traffic estimated at 20.4 million people.

The following tenants have signed on:
• Bella Scarpa – footwear boutique store that also features accessories such as handbags and special apparel
• Brooklyn Bowl – one of the most highly rated music venues in the country with a performance space capable of holding 2,000 people, comfort food options and 32 bowling lanes.
• Chayo Mexicano – high-end casual dining venue featuring multiple bars and private dining rooms
• F.A.M.E – Food, Art, Music and Entertainment featuring Asian cuisine and the increasingly popular Asian pop culture and K-pop
• Flour & Barley – slightly different pizzeria-style venue
• KOTO – lifestyle trend store offering ever-changing product lines
• Off the Strip – a local mainstay on the dining circuit in Las Vegas
• Ruby Blue – women’s accessories store featuring novelty legwear and headwear
• Sprinkles Cupcakes and Sprinkles Ice Cream – tasty treats for the whole family, one of the companies responsible for the cupcake craze
• Tilted Kilt – The Celtic-themed sports pub offers chef-driven cuisine in a fast-paced environment and its signature servers wearing plaid kilts
• Yard House – casual eatery in an ambiance of classic rock music. Wash it all down with a selection of imported beers and lagers

Macy’s Plans New Stores for Summerlin and the Strip

By Alex Girda, Associate Editor

Macy’s Inc. is planning a 180,000 square-foot anchor store at the Shops at Summerlin, the 1.5 million-square-foot retail center being developed by the Howard Hughes Corp. on the Western Beltway. The venue will be the retailer’s first new full-line store in the Las Vegas market since 1996.

Expected to open in fall 2014, the new Macy’s will feature fashions for women, men, children and home. The Shops at Summerlin will feature 125 shops and restaurants, while also attempting to increase west Las Vegas’ walkability.

Along with its Summerlin project, Macy’s has big plans for its Fashion Show Mall location on South Las Vegas Blvd. In a vacant store once occupied by the defunct Robinsons-May chain, Macy’s is scheduled to open a 105,000-square-foot men’s store next spring.

That project is an integral part of an overhaul of Macy’s existing 201,000-square-foot Fashion Show Mall location. By moving its men’s furnishings, the retailer will free up space to expand its women’s accessories department. After the remodeling, Macy’s will return 68,000 square feet to the property’s owner, General Growth Properties Inc., which is making the space available to small shops.

Las Vegas has seen its share of distress in every segment of the real estate market during the past several years, and the retail sector has been as hard hit as any. Research by Marcus & Millichap Real Estate Investment Services Inc. illustrates the steep drop in new retail completions since 2008 (see chart at left).

However, with the appearance of new developments such as the shops at Summerlin and expansions of existing venues such as Fashion Show Mall, things might finally be looking up in 2013.

Chart courtesy of Marcus & Millichap Real Estate Investment Services at marcusmillichap.com  

Upcoming Sale of Summerlin Office Properties Offers Promise for Market

By Alex Girda, Associate Editor

A big office deal or a series of smaller ones seems likely to take place in the Las Vegas area in the near future. VegasINC magazine recently reported that General Growth Properties is looking to offload a number of the office buildings it holds in Summerlin. The 32 office buildings the company is currently offering up to buyers total 1.1 million square feet of space, and according to industry professionals, it could end up with $127 million when the last transaction is completed.

According to the magazine, the rumored frontrunner for the Summerlin portfolio is Houston-based industry giant Hines Interests L.P.; Oaktree Capital Management L.P., an international investment firm out of L.A., has also been linked to the assets. With figures such as $115 per square foot and $127 million being thrown around in regards to the imminent deal, but some brokers feel the transaction will amount to slightly less than that.

New ownership could be a breath of fresh air for the still suffering Las Vegas Valley, which could benefit from new efforts to get the spaces up to tenant preferences. Las Vegas’ overall office vacancy rates have hit the 25 percent mark more than once in recent years, coming in high above the national trend, according to Marcus & Millichap figures, and 2012 doesn’t seem to change much in that dynamic.

The deal could rival some other portfolio transactions in terms of sale price, but could set a record in price per square foot in the post-downturn era. According to VegasINC, the only deal to pack such a punch for the Las Vegas market was the sale of a 400,000-square-foot portfolio in the southwestern part of the city back in the mid-2000s, at the absolute height of the market. Those properties traded for a per-square-foot rate of $300, or a total of about $120 million, a figure General Growth Properties is looking to improve upon.

Chart courtesy of Marcus & Millichap Real Estate Investment Services at marcusmillichap.com

Hilton Buys 300 Timeshares at Trump International Hotel

By Alex Girda, Associate Editor

The Trump Organization has sold a big chunk of the Trump International Hotel Las Vegas’ available timeshare units to Hilton Worldwide. According to VegasINC magazine, Trump has unloaded approximately 300 of its condominium units, which will enter Hilton’s timeshare circuit under the Hilton Grand Vacations brand. Hilton will start using the units in the first half of 2013. Financial terms were not released.

According to figures provided to VegasINC by Eric Trump, executive vice president of development and acquisition for the Trump Organization, units are priced in the upper $500,000-range. The Trump Organization has sold around 700 units at the property, including the 300 that were acquired by Hilton Worldwide.

Completed in 2008, the opulent 64-story Trump International Hotel is located on Fashion Show Drive a few minutes from McCarran International Airport. The tower offers 1,232 suites and 50 penthouses. Studio apartments sell for around $300,000, while penthouses command 10 times that price. Owners have the option to live in their units full time or part time; some opt for the package that allows units to double as hotel suites when the owners are away.

Amenities at the property include 24-hour concierge service, valet parking, a poolside bistro and bar, high-end dining in the building’s lobby, in-suite dining, a sundeck with swimming pool and private cabanas, spa, salon and fitness facilities and a business center.

Image courtesy of rooms101.com 

Developers Detail Plans for $1.5B ‘Health Village’

By Alex Girda, Associate Editor

Developers of one of the Las Vegas region’s best-kept secrets, the proposed $1.5 billion Union Village complex, submitted an outline to city officials this week that provides details about the development and its concept of “integrated health village.” As reported by the Las Vegas Sun, the development  is awaiting approvals that would allow the $11.6 million acquisition of its future site.

According to information in the draft development agreement unveiled on Tuesday, the entity behind the proposal, Union Village L.L.C., is a California-based company called InvXtus Properties L.L.C. The project team also includes a Las Vegas-based developer Juliet Companies.

Described as the frst project of its kind, Union Village would offer a comprehensive, self-contained community for people seeking continuous medical care for cancer and other major illnesses. As such, it would incorporate health care facilities, a residential component, hospitality properties and a retail element.

Plans call for four hospitals near U.S. 95 and Galleria Drive in Henderson; up to 1,000 residential units designated for senior housing; several hundred thousand square feet of medical office space; restaurants, retail and entertainment; and a hospitality component.

Image courtesy of  unionvillage.net

Henderson’s Vantage Lofts Gets $15M Restart; Ryland Homes Debuts

By Alex Girda, Associate Editor

A stalled 20-acre residential development is getting new life after its acquisition by Rothwell Gornt Cos., a venture capital fund. Recently acquired out of bankruptcy, the Vantage Lofts development is set to resume construction and is slated for completion in the next six to nine months, the Las Vegas Review-Journal reported.

Located at Paseo Verde Parkway and Gibson Road,  Vantage Lofts (pictured at right) will require about $15 million to complete its 110-unit first phase. Company principal Richard Crighton told the Las Vegas Review-Journal the company is in the process of submitting building permit applications. The intial value of the project was set at $160 million for around 300 units.

In other residential news, Ryland Homes is set to unveil its Indigo at Hillside development. Located near the Las Vegas Beltway and Cheyenne Ave., the project features single-family homes with rooftop decks and floor plans ranging between 1,863 and 2,031 square feet and rooftop decks.

According to data from Marcus & Millichap Real Estate Investment Services Inc., multi-family permitting is on the rise after years of decline (see chart below). The increasing number of permits likely signals an upturn in development during the next several years.

Photos courtesy of lasvegascondoloft.com and ryland.com

Chart courtesy of Marcus & Millichap Real Estate Investment Services Inc.

Henderson Retail Center to Add Cinema, Restaurant Anchors

By Alex Girda, Associate Editor

In a bid to step up traffic at Green Valley Town Center in Henderson, American Nevada Co. will unveil an eight-screen, 40,000-square-foot multiplex at the property in October. Galaxy Theatres, the new operator, will fill the void left by a previous operator.

The cinema will offer the 118,000-square-foot center a new anchor to complement a 21,500-square-foot Barley’s Casino and Brewing Co., according to VegasINC magazine. American Nevada is counting on the combination of the two to spark a turnaround in the property’s fortunes.

Green Valley Town Center will also expand Galaxy Theatres’ presence in the area, which includes the Cannery in North Las Vegas. Galaxy plans to install stadium seating and is pursuing a license to sell beer and wine at the new location.

Another addition to Green Valley Town Center’s tenant roster is Las Vegas Buffet, a Chinese restaurant occupying 9,400 square feet of space in the western part of the development. The restaurant is owned by California-based C & J Express.

Image courtesy of facebook.com/VegasInc

Third Tower Ready to Rise at Marriott Timeshare Complex

By Alex Girda, Associate Editor

Construction is set to begin on the third tower in Marriott’s Grand Chateau timeshare complex near the Las Vegas Strip. The Marriott Vacation Club, an affiliate of Marriott Vacations Worldwide, will operate the tower after its completion.

Scheduled for completion in 2014, the  tower will rise 37 stories and add 233 villas to the vacation property, bringing the total at the complex to 643. The lobby will offer food and refreshments, billiards, electronic game tables, and a café.  The fifth floor will offer the complex’s largest pool, along with a sun shelf and relaxation area.

One-, two- and three-bedroom units in the new tower will incorporate a spacious and contemporary design in floor plans ranging from 820 to 2,095 square feet. Furnishings will feature mahogany-stained furniture; backlit, frosted glass on the armoires; and granite surfaces.

Amenities at the French-themed, three-tower Marriott Grand Chateau include fully equipped kitchens, granite countertops, stainless steel appliances, custom cabinets and generous dining areas. Multiple flat LED TVs, media players with Blu-Ray capabilities and complimentary Wi-Fi Internet access, as well as in-unit washer and dryer complete the amenity package.  Three-bedroom villas can accommodate up to 10 guests.

Photo courtesy of marriott.com

Plans for Record-Breaking Ferris Wheels on a Roll

By Alex Girda, Associate Editor

Caesars Entertainment Corp. has recently announced that its newest eye-catching project is getting off the ground after securing construction permits for what will be the world’s tallest observation wheel, part of Caesars’ LINQ retail, dining and entertainment complex.

Dubbed the High Roller, the Ferris wheel will stand 550 feet tall, thus claiming the title of the world’s tallest observation wheel. The wheel will take shape in the middle of an area also featuring Caesars’ Harrah, Imperial Palace and Flamingo Las Vegas casinos.

Set to open in the fall of 2013, the observation wheel will feature 28 bubble-shaped gondolas, each capable of carrying around 40 viewers. At full capacity, the High Roller could hold about 1,100 people. A complete revolution of the structure will take about 30 minutes.

The High Roller will have a competitor three miles south on Las Vegas Boulevard. The 500-foot tall SkyVue observation wheel is part of a $100 million private project that is set to include highly visible LED screens in a convention space capable of hosting concerts, and other high-profile events. Its 32 gondolas, each with a 25-person capacity, would revolve near McCarran International Airport.

Rendering courtesy of projectlinqvegas.com 

MGM Resorts Wins Round on Harmon; Tutor Perini Appeals

By Alex Girda, Associate Editor

MGM Resorts International’s woes with the Harmon hotel, part of the CityCenter project, have taken a step toward resolution. The Las Vegas Sun reports that Clark County District Court Judge Elizabeth Gonzalez has approved the company’s plans to implode the problematic structure. However, demolition will not go ahead immediately as Tutor Perini Corp., the project’s general contractor, is appealing the ruling.

MGM and Perini are also battling over the Harmon’s construction defects. Originally planned to rise 49 stories above the Las Vegas Strip, the Harmon was reduced in height to 26 stories after a 2008 inspection that uncovered severe deficiencies in the structure’s steel reinforcement. The legal dispute over the defects is not expected to be resolved until next year, much later than the anticipated court ruling on tMGM’s demolition plans.

MGM wants to put the Harmon behind it as soon as possible in order to remove a blemish on CityCenter. The largest privately funded construction project in the U.S., the 76-acre development includes a Mandarin Oriental hotel, the Vdara hotel-condo tower, the Crystals retail and entertainment district, the Aria resort and the twin 37-story Veer Towers.

Photo courtesy of user Cygnusloop99 via Wikimedia Commons

World’s First Nobu Hotel Targets Boutique Market

By Alex Girda, Associate Editor

A new hotel bearing the name of renowned chef Nobu Matsuhisa is gearing up for a fall opening at Caesars Palace. The world’s first Nobu Hotel will arrive at a time when the city is looking toward niche boutique hotels to attract a new demographic to Las Vegas.

According to the Las Vegas Sun, the city has already seen a rise in the number of boutique hotels during the past few years, but the  Nobu may will  usher in a new era. Properties like Rumor, the Artisan, El Cortez Cabana Suites, the Platinum, Sky Suites, and SkyLofts have all bet that visitors prefer design-driven venues that are smaller in scale than Las Vegas’ megaresorts.

The Sun also noted that such as San Francisco, Seattle and Portland have already established a market for boutique hotels, with San Francisco leading the West Coast market in recent months. Larger cities such as Los Angeles and New York are also  focused on high-end boutique hotels targeting both business and leisure travelers.

The new hotel will count on the appeal of the Nobu brand name and the signature high-end cuisine that Matsuhisa creates at each location. In the U.S., Nobu and Matsuhisa-branded restaurants are located in cities such as Aspen, Colo., Dallas, Los Angeles, New York City, San Diego, Honolulu and Miami. International locations include Athens, Dubai, Hong Kong, London, Milan, Moscow, Tokyo, Cape Town and Beijing.

Image courtesy of  caesarspalace.com/nobu

North Las Vegas Welcomes SpringHill Suites by Marriott

By Alex Girda, Associate Editor

For North Las Vegas, any bit of good news is welcome in market that continues to struggle. Recently SunWest Commercial provided a breath of fresh air in the form of a 94-key SpringHill Suites by Marriott, the first new local hotel in more than four years.

Located near Interstate 15 at 2910 East Craig Road, the $12 million hotel will cater to business travelers and visitors to such destinations as the Las Vegas Motor Speedway, Nellis Air Force Base and a new Veterans Administration hospital.

While permits had been in place for the development since 2005, SpringHill Suites delayed construction after the market turned sour in 2007. SunWest Commercial eventually moved forward with construction in order to avoid losing its franchise agreement with Marriott.

The new North Las Vegas property joins existing SpringHill Suites hotels near the Las Vegas Convention Center and in Henderson. SunWest also operates a nearby 104-key Hampton Inn, which has been operating with an average occupancy rate of about 80 percent, the Las Vegas Business Press reports.

Photo courtesy of SpringHill Suites at facebook.com