Condominium Conversions - Need of the Hour
Property prices may have stabilized for homes in Las Vegas to a large extent. But the demand for Condominiums and condominium conversions in the city are still high, even though the housing market in general may have cooled. There are fewer condo units available than there a demand for and developers like SunVest have already sold 400 to 500 units in Las Vegas.
SunVest bought Traverse Point apartments near the Las Vegas Beltway and Stephanie Street for $40 million last year and is converting the block to condos starting in the mid-$100,000s for one bedroom units. This is their latest project after Latigo at Silverado Ranch, Desert Shores Villas and Southgate condominiums, which is in the closeout phase of sales. SunVest is ready to start marketing the Pinehurst condo conversion in southwest Las Vegas Valley and plans to build two condo towers at 601 E. Fremont Street. Zoning for the first 255-unit tower has been approved. The problems with building new apartments economically in the valley still exist.
Demand outstrips supply for median priced units and the ever escalating land and construction costs have deterred developers from building new apartments here. The prices of existing apartment prices have also shot up to $140,000 and $150,000 a unit. This makes difficult for owners to make a profit at current rental rates. Sometimes even condo conversions do not become economically viable. A lot depends on the area and how far the market can be pushed. Properties with the best potential for conversion to condos have probably already been identified. A profitable conversion which ended up in a win-win situation for all involved was Eagle Real Estate Group’s conversion of the Camden Harbor apartments at 9000 Las Vegas Blvd. South into Sedona on the Boulevard condos.
Eagle purchased the 560-unit apartment community in January 2005 and had enough sales by September to pay off the lender and return all investor equity. Nearly all of the units at Sedona have been sold with prices ranging from $168,000 to $325,000. Condominiums in eight floor plans at Sedona, a resort-style community, just south of Mandalay Bay has three designs with one bedroom and one bath each and three others offering two bedrooms and two baths each. Two three-bedroom, two-bath designs were also available. The homes have such features as private patios, nine-foot-high ceilings, oversized Roman/garden tubs and laundry rooms with full-size washer/dryers. No wonder then that they are so popular!
The rise in median home prices and construction costs makes condo conversions the best value based on price per square foot. Sedona on the Boulevard sold at roughly $200 a square foot in a neighborhood where newly built Park Avenue and Manhattan condos were priced from $350 to $400 a square foot. The median price of all condos continues to rise but condo conversions will continue to be a more feasible option for people looking to buy their own place at a median price. The value provided by conversions makes them more attractive to many buyers.
SunVest bought Traverse Point apartments near the Las Vegas Beltway and Stephanie Street for $40 million last year and is converting the block to condos starting in the mid-$100,000s for one bedroom units. This is their latest project after Latigo at Silverado Ranch, Desert Shores Villas and Southgate condominiums, which is in the closeout phase of sales. SunVest is ready to start marketing the Pinehurst condo conversion in southwest Las Vegas Valley and plans to build two condo towers at 601 E. Fremont Street. Zoning for the first 255-unit tower has been approved. The problems with building new apartments economically in the valley still exist.
Demand outstrips supply for median priced units and the ever escalating land and construction costs have deterred developers from building new apartments here. The prices of existing apartment prices have also shot up to $140,000 and $150,000 a unit. This makes difficult for owners to make a profit at current rental rates. Sometimes even condo conversions do not become economically viable. A lot depends on the area and how far the market can be pushed. Properties with the best potential for conversion to condos have probably already been identified. A profitable conversion which ended up in a win-win situation for all involved was Eagle Real Estate Group’s conversion of the Camden Harbor apartments at 9000 Las Vegas Blvd. South into Sedona on the Boulevard condos.
Eagle purchased the 560-unit apartment community in January 2005 and had enough sales by September to pay off the lender and return all investor equity. Nearly all of the units at Sedona have been sold with prices ranging from $168,000 to $325,000. Condominiums in eight floor plans at Sedona, a resort-style community, just south of Mandalay Bay has three designs with one bedroom and one bath each and three others offering two bedrooms and two baths each. Two three-bedroom, two-bath designs were also available. The homes have such features as private patios, nine-foot-high ceilings, oversized Roman/garden tubs and laundry rooms with full-size washer/dryers. No wonder then that they are so popular!
The rise in median home prices and construction costs makes condo conversions the best value based on price per square foot. Sedona on the Boulevard sold at roughly $200 a square foot in a neighborhood where newly built Park Avenue and Manhattan condos were priced from $350 to $400 a square foot. The median price of all condos continues to rise but condo conversions will continue to be a more feasible option for people looking to buy their own place at a median price. The value provided by conversions makes them more attractive to many buyers.
posted by realestatevegas | 2:30 PM
<< Home