High Price Tags on Land Near Raiders’ Future Stadium

Buyers are paying top dollar for pieces of land around the site of the future Las Vegas Raiders.  Most of the land is being said to be purchased for “industrial use”, but only time will tell as things are built.  A new football stadium adds value to an area as it draws in more businesses.  We could see a lot of change to the Las Vegas landscape in the next three years with the addition of this stadium and our market doing so well.  Learn more about the latest property sale in the article below:

Investors pay premium for land near Raiders Stadium in Las Vegas

By Eli Segall Las Vegas Review-Journal

August 11, 2017 – 5:29 PM

The Raiders are still a few years away from throwing the pigskin in Las Vegas. But one investor group is getting in on the NFL team’s neighborhood early – and it paid a premium.

Global Trust Group this week bought a vacant 2.5-acre parcel on Hacienda Avenue, just north of where the Raiders plan to build their stadium. The $7.25 million sale closed Monday, property records show.

That amounts to $2.9 million an acre — about six times the average sales price for Southern Nevada land in the second quarter, as tracked by brokerage Colliers International.

Listing broker Bill Lenhart told me the buyers were “never specific on their intent” for the site. He said one reason Global Trust beat other bidders was that it did not have an entitlement contingency, or a precondition that it would finalize the sale after it obtained project approvals from Clark County.

A sign for the company at its newly acquired property proclaims it a “development site.”

“Create and defend wealth,” the sign says.

Efforts to reach Global Trustfor comment were unsuccessful.

Lenhart, founder of Sunbelt Development & Realty Partners, said he received offers from seven qualified prospective buyers, or those who provided proof of funds, and some from people who “were not so qualified.”

The Raiders are expected to start construction of their 65,000-seat domed stadium in January and finish by mid-2020. According to Lenhart, investors were interested in his client’s parcel because of the football team’s pending arrival.

“It just shined a light on it,” he said.

Investors also have eyed a property adjacent to Global Trust’s: a 1.8-acre spread with a boarded-up, two-story commercial building on Dean Martin Drive that was torched in a fire in May. But a deal with the site’s owner has ended up in court.

ABC Land & Development sued the owner, Itai Investments, in late June in Clark County District Court.

ABC alleged it reached a deal effective March 30 — three days after NFL owners approved the Raiders’ move from Oakland to Las Vegas — apparently to buy the property for $3.2 million. But Itai “has failed and refused without just cause or reason” to comply with the terms of the sale and finalize the transaction, ABC alleged.

ABC’s attorney in the case, James Smyth of law firm Kaempfer Crowell, would not comment Thursday.

The case docket online does not show an attorney for Itai. Efforts to get comment this week from the ownership were unsuccessful.

It’s still too early to say whether the Raiders will spark a real estate bonanza. There are some empty parcels near the stadium site, but the neighborhood is almost entirely built out, mostly with industrial properties.

But with one property owner able to fetch nearly $3 million an acre, don’t be surprised if others start salivating — if they aren’t already.

Source: https://www.reviewjournal.com/business/business-columns/real-estate-insider/investors-pay-premium-for-land-near-raiders-stadium-in-las-vegas/

Las Vegas’ Current Commercial Real Estate Market

There will always be examination of real estate markets across the country, and for industry professionals there is always benefit in knowing how the market looks in your area.  The latest in Las Vegas commercial real estate news is positive.  Fellow industry professionals speculate that the market is heading in a good direction thanks to dropping vacancy rates and big land purchases. Learn more about where our market is at in the article below.

Most Arrows Pointing in Positive Direction for Local Commercial Real Estate Market

July 11, 2017 By Press Release Wire

LAS VEGAS – A report released by Xceligent in partnership with the Commercial Alliance Las Vegas (CALV) shows the commercial real estate market in Southern Nevada posting mostly positive results through the first half of 2017.

“Most of the arrows continue to point in a positive direction, especially when compared to the past several years,” said CALV President Jennifer Ott, CCIM, and a longtime local commercial real estate broker who specializes in the retail market. “The retail market is a good example. After a relatively slow first quarter, we saw the retail sector pick up during the second quarter. That trend should continue through the rest of 2017.”

According to the report, the total vacancy rate for the local retail market went from 9.8 percent in the first quarter of 2017 to 9.5 percent during the second quarter. The local retail market recorded 177,756 square feet of positive absorption during the second quarter of 2017, up from 17,202 square feet during the first quarter of this year.

Tina Hickman, director of analytics for Xceligent for the Las Vegas market, said more than 200,000 square feet of retail space is under construction in Southern Nevada, with a new Walmart Supercenter in the Southwest part of Las Vegas accounting for most of that.

Meanwhile, Ott said the local office market continues to improve after seeing vacancy rates approach record highs during the recession. One reason for that, Ott and Hickman agreed, is Southern Nevada’s overall economic and job growth.

The total office vacancy rate continued to decline, dropping from 15.1 percent in the first quarter of 2017 to 14.9 percent in the second quarter. At the same time, the local office market recorded 125,089 square feet of positive absorption during the second quarter, compared to 178,805 square feet during the first quarter of 2017.

Brenden Graves, sales executive for Xceligent in Las Vegas, noted that “although office vacancies are high, this is largely due to obsolete product on the market in the central and northeast markets. The office market actually has felt a compression in space that will likely soon affect rates.”

Hickman said 286,876 square feet of office space is now under construction in Southern Nevada, with most of it being built in the Southwest part of Las Vegas.

“Construction activity is gaining ground even more than last quarter, as we continue to see more plans in the pipeline for office development,” she added. “An additional 430,000 square feet of office space is currently planned and proposed for the Las Vegas metro area. Absorption is expected to remain positive during 2017.”

The story is similar in the Southern Nevada industrial market, where Xceligent is tracking 13 industrial buildings under construction, adding more than 3.3 million square feet of space to the market. Another 2 million square feet of space has been proposed.

Hickman said the local industrial market recorded 1.8 million square feet of positive absorption during the second quarter of 2017, more than triple the amount of activity recorded during the first quarter of 2017. Still, the total industrial vacancy rate increased to 6.0 percent during the second quarter, up from 5.6 percent during the first quarter.

“Industrial vacancy rates have experienced a slight increase due to the new inventory,” she explained. “Much of this space is scheduled to be occupied within 2017, and absorption is expected to continue an upward trend.”

Graves also commented on rising land costs and the increasing number of multifamily developments being built around Southern Nevada.

“In regard to land, we’re seeing that prices on a per-acre basis have outrun most product types’ appetite,” he said. “This has created an influx of land purchased for multifamily, and we’re not sure where the renters are going to come from.”

Xceligent, a growing provider of commercial real estate information locally and nationally, partners with CALV and local commercial real estate professionals through their Quarterly Advisory Boards to produce quarterly reports on trends and conditions in the office, industrial and retail markets in Southern Nevada. The report released this week covers activity through the second quarter of 2017.

Ott, whose professional designations include being a Certified Commercial Investment Member (CCIM), is one of dozens of leading local brokers who volunteer to serve on advisory boards that help verify and produce these reports.

About the Commercial Alliance Las Vegas
The Commercial Alliance Las Vegas (CALV) is the commercial real estate division of the Greater Las Vegas Association of REALTORS®. It organizes and empowers the industry in Southern Nevada through education, networking, promoting professionalism and shaping public policy. Membership in CALV is open to REALTORS® and non-REALTORS® alike. For more information, and to access the full reports on the commercial real estate market, visit www.calv.org.

About Xceligent
Xceligent is a leading provider of verified commercial real estate information across the United States. Its professional research team pro-actively collects: a comprehensive inventory of commercial properties, buildings available for lease and sale, tenant information, sales comparables, historical trends on lease rates and building occupancy, market analytics, and demographics. This information assists the real estate professionals, appraisers, owners, investors, and developers that make strategic decisions to lease, sell, and develop commercial properties. Xceligent, backed by dmg information, has launched an aggressive national expansion that will provide researched information in the 100 largest United States markets. For more information on Xceligent, visit xceligent.com.

Source: http://www.nevadabusiness.com/2017/07/most-arrows-pointing-in-positive-direction-for-local-commercial-real-estate-market/

Avoiding CRE Mistakes In Your City

Every city has vacant properties that have not spiked interest from buyers or developers in years.  Those properties, however, can be the gateway to recreating a whole neighborhood with the right development.  Learn how real estate professionals in big cities, including Las Vegas, across the country look at their surroundings and how they avoid major commercial real estate mistakes in the article below.

Real estate professionals can avoid

costly mistakes with advanced

drive-time analyses

Every community has a failed site that prominently stands on a corner or next to a grocer. These sites continue to consume resources from land owners without benefit and can hurt neighborhood businesses. While in some cases a business closes because of the management, far too many close because the site was not right for that business.

A prominent commercial real estate consultant once told me that in real estate “if you’re off by an inch, you’re off by a mile … you make a mistake; you’re dead.”

With so much at stake, commercial real estate professionals cannot afford to make decisions based on intuition or conventional wisdom. Successful companies understand the importance of making decisions based on accurate data and sound statistical methodologies. However, few analytical platforms today enable analysts to thoroughly understand their neighborhoods.

Much of the market analysis software on the market fails to provide an accurate description of local consumers. This is evident in the choice to use linear distance from a site, which is subject to statistical misrepresentations due to natural barriers like mountains and bodies of water that separate populations. Even when examining a large, densely populate areas like Los Angeles, rings can skew the data.

The analysis is made worse when a liner ring crosses a separated population and aggregates the two populations. In compact metropolitan areas like Seattle, a 5-mile ring can cross several separated communities that would not access the site. Although these communities are connected by bridges or tunnels, these areas are not an idea representation of the target consumer.

The same is true in Orlando, Florida, which has a large number of small lakes separating the populations. The communities may be close, and even accessible, but they may not be in a likely consumer group.

Commercial real estate professionals need a way to practically examine a neighborhood, moving beyond old cartographic techniques to see how people behave in a market to determine suitability.

A new way to know your neighborhood

Last month I attended a convention of professionals in the shopping center and commercial real estate industry in Las Vegas, where I met with a real estate developer from Orlando. He told me that success in commercial real estate comes down to finding “a place for people and people for place.” His statement made me realize that far too often, sites are examined without regard to the people who will use them. While many developers look at traffic counts, median age, and income, they fail to look at and understand who is going where and for what reason.

To avoid costly mistakes based on statistical misrepresentations, Esri developed a way to examine a local market, focusing on the people who will most likely use the space. Using Esri Business Analyst, commercial real estate professionals have access to practical analyses-based on driving and walking times, both to and from a site.

Above is the same site in Orlando based on a 5-, 10-, and 15-minute drive time to the site. From this analysis, a real estate profession can see there is a higher concentration of people that can easily access the site who are outside of the original rings and also communities that were within the original rings what would have a more difficult time accessing the site.

The same is true of walking time. In densely populated urban areas, commercial real estate professionals need to examine a much smaller area. Seattle, for example, is a highly walkable city. Looking at the corner of First and Pike, the entrance to the well-known Pike Place Market, a commercial real estate professional can examine the local population to determine proper site suitability.

By changing the way commercial real estate professionals think about the borders of a neighborhood or community, they are in a better place to analyze and determine the gaps and opportunities in the marketplace. If real estate professionals don’t challenge antiquated thinking or dated statistical methodologies, the risk of misrepresenting a site’s potential becomes more likely.

Source: http://www.bizjournals.com/bizjournals/news/2017/06/09/real-estate-professionals-can-avoid-costly.html

Retail Real Estate’s Challenges

Commercial real estate is in an awkward place right now.  Between store closings, bankruptcies, and a new president the market is not what it used to be — especially in the retail industry.  In the article below Mark Dufton, a real estate exec, gives his take on retail real estate and the market right now.

Q&A: Gordon Brothers Real Estate Executive Weighs in on Challenging Retail Real Estate Landscape

Mark Dufton Leads Specialized Restructuring Firm Involved in a Hefty Amount of Resizing, Repurposing, Renegotiating and Relocating Retailers
May 4, 2017


With retailers and shopping center owners heading to Las Vegas later this month for RECon, the world’s largest retail real estate convention, we asked Mark Dufton, CEO of the Real Estate practice of Gordon Brothers, for his take on the evolving retail real estate market. 

Gordon Brothers is among the handful of retail restructuring specialists capturing the lion’s share of restructuring work involving store closings and dispositions. Dufton has more than 25 years of real estate and management experience. He is also a managing director for Dinosaur Capital Partners, a Boston-based real estate investment and development company, as well as a member of the International Council of Shopping Centers and the Turnaround Management Association. 

Q: We’ve seen at least nine major retailer bankruptcy filings this year alone. How much restructuring may be going on below the surface at other retailers that the market is not seeing? 

Actually, it’s not as prevalent as people think. It has become very difficult to conduct out-of-court restructuring. It used to be much more commonplace, but now the vast majority of retail restructurings are done through bankruptcy. It’s essentially become the accepted standard practice, and banks don’t seem to mind. 

Q: While a lot of news on struggling retailers has been focused on major anchor tenants, inline retailers face the same challenges as anchors, but they are also dealing with the decreased foot traffic those anchors are expected to bring in. What adjustments are they making in their real estate decisions? 

The impact on inline retailers can be viewed through two angles: new store openings and lease renewals. 

The number of new store openings has slowed dramatically. And when new stores are opened, they are being scrutinized in a way we haven’t seen before. 

That’s largely because lease deals take twice as long as they used to. It used to take six months to close a deal on a new store, now it’s a year-long process. 

Another reason why these deals are taking longer is the added importance being put on the decision. New store decisions used to be made by an internal real estate committee, but new store decisions may now go all the way up to the board for input. 

This level of thought and scrutiny for new stores is a good thing for the industry, it’s important to have greater discipline when adding new locations.

As for lease renewals, we’re seeing a much greater focus on the timing of lease renewals, and determining if that lease is at market value. Retailers now want to know what other factors are associated with the lease and whether they should renew or close. They are paying much more attention to this decision than in the past. 

Previously, if a store’s sales were mediocre and the renewal came with a nominal rent increase, most retailers would renew. Now, retailers are looking at every detail. For marginal stores they’ll go out and look at the market and try to restructure the lease to make it more profitable. There is more attention to overall occupancy expense than ever before. 

Also in the current retail environment, lease renewals are no longer a secondary consideration. It is now the biggest expense for retailers after their people. 

Q: When it comes to store closings and lease cancellations, retailers are increasingly choosing between Class A properties and Class B and C properties. How is this showing up in efforts to find new tenants for vacated space? And how is it showing up in the renegotiation of leases? 

There is a clear bifurcation between Class A retail properties and Class B and C. Owners of Class A properties actually like having vacated spaces. They have leverage because everyone wants to model Class A traffic. This also means owners at those centers have the power when renegotiating rents. 

However, malls no longer publish traffic numbers, which in itself is telling. Owners of B and C centers have little leverage with retailers for vacated spaces and are willing to renegotiate rents. We expect to see Class A properties continue to do well and Class B and C struggle. The divide between A and B and C will simply become greater. 

You will see more and more vacancies and lower rents at these properties as retailers are desperate to restructure. There may be many unknowns, but retailers and landlords will choose to repurpose and restructure to improve cash flow, which impacts debt restructure and has an overall cascading effect on the property. 

The future for the bottom market B and C retail space is going to look like repurposed quasi-retail, we’re talking schools, churches, call centers, gyms and medical clinics. 

All this is part of the big shift going on in retailing – instead of the 1,200 malls we see in the U.S. today, I expect that number to shrink to 800 or 900. 

Q: Beyond closing under-performing stores, retailers are trying to become more efficient in their current space allocation and occupancy dollars, as well as selecting new locations. Not counting closures, where is this additional shrinkage coming from and how much are you seeing? 

One area where we are seeing retailers conserve capital is in lease mitigation. Instead of spending capital on a lease buyout, more retailers are deciding to ride out the remainder of the lease and then close and maybe relocate. 

For many retailers, downsizing is an easier-said-than-done proposition. Some big box retailers don’t lend well to splitting up. With challenging configurations, the cost to split and utilities, they may not get the return on investment (from downsizing) without certain rent levels. 

Downsizing is much more challenging to execute. More likely it is easier to relocate and downsize when the lease comes up for renewal. 

Q: We tend to associate retail troubles with real estate and blame downsizing on an ‘oversaturation’ of retail space. But how much of the trouble in the retail industry is associated with real estate? What other forces are at work? 

The way I view it is real estate is the cart and slowing sales is the horse. The oversaturation in the retail market was caused by lagging sales in stores. This only became a real estate problem when sales did not keep up with the market and leases became unprofitable. 

The other forces at work that are affecting retailer sales, and eventually retail real estate, include: income stagnation, which continues to put a damper on the mass consumer; the growth of online retail and increasing preference for the channel over bricks and mortar, and the preference among millennial consumers to spend on experiences instead of retail goods. 

As I mentioned, those factors have led to lower sales, which in turn has resulted in the sheer size of the retail footprint being too large and the store count too great. 

Shoppers’ needs and wants have evolved, and retailers have struggled to keep pace with the trends of younger generations. Also, not all retailers have done a good job integrating their online presence with their brick and mortar operations. We see some retailers who do this exceptionally well and others who have not kept pace. 

Q: Even as Class A properties seem to be thriving, there has also been a rise in the number of discount retailers and outlet stores. These aren’t the type of tenants associated with Class A space. How are they doing in the current environment? 

Yes, value shopping has become prevalent at every level of the market, including luxury. We see Nordstrom Rack, Saks Off Fifth and Last Call by Neiman Marcus exceeding margins and (sales) levels never anticipated. 

However, even though value retailers like TJX concepts have held up reasonably well, outlets and Class A properties are not performing as they once were. The former darling of the retail industry, outlet stores and Class A are now reporting downturns in their traffic, which makes it more difficult to terminate their leases. 

Historically, outlets and high streets like Fifth Avenue in New York and Newbury Street in Boston were minimally affected by industry shifts. But now we’re seeing more softness among outlets and high streets. In both categories there are more vacancies than we have seen in years.


Source: http://www.costar.com/News/Article/QA-Gordon-Brothers-Real-Estate-CEO-Weighs-in-on-Challenging-Retail-Real-Estate-Landscape/190749

The Raiders’ New Neighborhood

As news surfaced of the Oakland Raiders officially moving to Las Vegas in 2020, talks began of building the stadium.  Not only will the build be good for the Las Vegas construction industry, but, overall, the move will help the city’s economy and nearby businesses.  The team hasn’t officially bought the talked about property on Russell Road, but the article below highlights what it will do for that neighborhood if they do.

 

What a stadium might mean to Russell Road neighborhood

A view of the 63-acre Russell Road site for the proposed Las Vegas Raiders stadium Wednesday, March 29, 2017. This photo is taken northbound from Russell Road.

Thursday, March 30, 2017 | 2 a.m.

Business owners near the intersection of Russell Road and Polaris Avenue are anticipating how the landscape will change when the Raiders construct a domed 65,000-seat stadium in time for the 2020 season.

The Raiders have yet to purchase the barren 62 acres, currently owned by Nevada Land Group LLC. But John Knott, executive vice president of the CRBE commercial real estate firm, which represents Nevada Land Group, confirmed the team has an option in place to buy the land.

Knott declined to explain the stipulations of the potential deal, citing confidentiality, but the Raiders also confirmed to the Las Vegas Sun that the Russell Road site is their target.

Brad Meyers, regional director for EJM Development Co., which owns land zoned for a hotel-casino directly across from the proposed stadium site, said inquiries about the parcel have increased with the Raiders speculation.

“It’s been building over the last year, but I don’t even know how many calls we’ve taken on it since just (Monday, when the NFL approved the Raiders’ move), but it’s definitely picked up,” Meyers said.

No specific plans were revealed to Meyers, but he said the interest is there.

EJM Development also owns several buildings and another plot of land close to the site. If the Russell Road site is officially chosen, the price of the vacant lot and the other buildings in the vicinity are set to rise.

Myers said that EJM Development has a long history in the area. The company even owned the Russell Road site (through Weststate Land Partners) at one point and was instrumental in the infrastructure development in the vicinity, he said.

“We were the developers that actually put in that intersection (Russell Road and Polaris Avenue) in a joint public-private partnership with the state, which essentially created that Raiders site,” he said. “We sold off everything except that little piece of land.”

Meyers said EJM Development owned a large section of land, including property on which the Convention Center at Mandalay Bay was built and the southwest corner of Polaris Avenue and Russell Road where a group of hotels is located.

Meyers said the group to which EJM sold the Russell Road site had plans for a hotel-casino, but the economic downturn curbed those plans.

Meyers said the Raiders have not approached him about EJM’s land or buildings, but he would listen to any offers. “It’s hard to speak on that now, but I’m sure we would be listening to just about anything,” he said.

With the area surrounding the stadium now largely industrial, Meyers said he could see that character changing to capitalize on the droves of fans who will be looking for something to do before filling the seats.

“I could see a lot of things going on around the stadium just because the draw that will be there and highest and best use for the property around there,” he said. “It may not be industrial anymore.”

If everything goes as planned and the stadium is built on the land, Meyers said it would be a little more special to them than the average resident.

“There would be a little sense of pride, that we developed that intersection and we pretty much created that corner here,” Meyers said. “Back when we did it there, it was the end of the Strip, there really wasn’t anything there. The owners took a big risk, and it paid off really well.”

One business a few hundred feet from the intersection of Russell Road and Polaris Avenue is gentleman’s club Crazy Horse lll.

Crazy Horse lll general manager Keith Ragano said the business is excited about the possibility of the Raiders becoming their neighbor and plans to capitalize on the increased traffic in the area.

“We are right there in the shadow of the new stadium, so it will have a huge impact on us,” Ragano said. “Considering that sports fans and a gentlemen’s club go hand in hand, well, for us the location couldn’t be better. We expect a lot of positives from being at the site, from increased foot traffic to being a great party spot for players and fans.”

Ragano said that he’s not worried about the traffic issues affecting his club on game days. The club’s peak hours are late night, so the rush should be gone by then, he added.

When the Raiders arrive in a few years, Ragano said that the club would beef up staffing to ensure they have enough employees during days with games or special events.

Ragano said the Crazy Horse lll is willing and ready to assist with the football festivities.

“If anything, we’ll have the opportunity to host tailgates and after-parties on game days,” Ragano said. “For us, it’s just great for business. As much as we’re a gentlemen’s club, we’re a party destination. We’ll have some great tailgates.”

 

Article sourced from: https://lasvegassun.com/news/2017/mar/30/what-a-stadium-might-mean-to-neighborhood/?_ga=1.166094907.428224429.1478295594

New Office Building Announcement

Lance Bradford Real Estate Announces Office Building

LAS VEGAS, NV–(Marketwired – Mar 9, 2017) – Lance Bradford, Founder of Stable Development announces construction of a 51,850 square feet building in Henderson, Nevada. Expected to start in the second quarter of 2017, the building will house a combination of retail, medical and professional office space. The two-story structure is scheduled for completion by the end of 2017.

Lance Bradford, a trusted and respected real estate executive and financial advisor, states, “We are delighted to not only announce the Henderson project, but the fact that it is already over 50% pre-leased. This reflects the quality of the project and its superb location.”

The new project will feature a two-story parking structure. It is near local restaurants, St. Rose Hospital and a future Costco site. With the amazing pre-leasing progress, the success of the project is already assured.

Bradford established Stable Development in 2005 to promote his unique Shared Equity™ financing model to the Las Vegas area. The Shared Equity™ approach creates long-term partnerships that provide a ‘win-win’ scenario for those involved. This model incorporates tenant ownership and has out-performed the market in the recent challenging economic environment. This format is market tested and has resulted in more than 500,000 square feet of commercial, medical and professional real estate owned in Southern Nevada.

With Bradford’s remarkable experience and entrepreneurial spirit, Stable Development has become one of most successful commercial office developers in the Las Vegas area. According to Bradford, “We’re very excited about this real estate opportunity. It not only gives us a stronger presence in Henderson, but we are proud to create employment opportunities for the area.”

Stable Development is expanding its unique business model to new markets, including California, Texas, Kansas and New York. The company has enjoyed tremendous success and growth and has now added a full-service architectural division. Bradford’s remarkable experience and experience will assure the successful expansion of Stable Development into new markets.

 http://StableDevelopment.com and http://LanceBradford.info.

http://finance.yahoo.com/news/lance-bradford-real-estate-announces-035238204.html

Land Sales Across Southern Nevada

Our Economy’s “Boom and Bust”

Sullivan Square was supposed to be an urban enclave built from scratch in the Las Vegas suburbs, with high-rises, bike lanes, a dog park, art fairs and fitness centers.

Today? It’s a giant hole in the ground.

The project, at the southeast corner of Sunset Road and Durango Drive, was one of dozens last decade that was supposed to bring soaring towers to flat, sprawling Las Vegas. And like most high-rise proposals from the bubble years, Sullivan Square never materialized, amid a heap of lawsuits over the project.

Now, this gaping reminder of the real estate boom and bust can be yours.

 

Dublin, Ireland-based Harcourt Developments, a partner in the failed project, put the 14.9-acre property on the market this month. It’s looking to sell the site but doesn’t have an asking price, though its “focus” is finding a partner for a possible development, said listing broker Aman Lal, an associate with The Hoffman Co.

The fenced-off, dirt property is across Durango from the Ikea furniture store, and Lal said the excavated portion is roughly 30 feet deep.

Other mixed-use projects in the valley faced steep problems during the recession, ranging from foreclosure and litigation to outright abandonment. But properties like Town Square, The District at Green Valley Ranch and The Gramercy are up and running today, not massive craters.

“You look at that site today,” Lal said of Sullivan Square, “this was one of the big lessons of the downturn: you can’t build urban projects in suburban locations.”

A sale could bring new life to a long-abandoned property in perhaps the fastest-growing area of the valley, the southwest. And while this sort of land may seem unique, it’s not the only one in its neighborhood.

A short drive away, off Buffalo Drive just south of the 215 Beltway, Spanish View Tower was designed to have three 18-story condo towers. It’s now a massive hole in the desert, 40 to 50 feet deep, with a rust-streaked, partially built underground parking garage, and an abandoned construction trailer with broken windows that’s visible to passersby.

The site’s owner, Las Vegas broker and investor Jack Woodcock – a lender to Spanish View’s original developer – has been trying to sell the 15-acre property for $18.9 million.

Lal said it would cost about $1.3 million to fill the hole at Sullivan Square with dirt. He said Harcourt owns the site free and clear, without debt on it, and that to his knowledge none of the lawsuits over the project are still open.

Harcourt, led by founder Pat Doherty, and Las Vegas-based Glen, Smith & Glen Development Co. partnered in summer 2006, around the peak of the bubble, to build the mixed-use project, court records show.

 

With a reported price of $800 million, Sullivan Square called for 1,380 residential units, 45,000 square feet of retail and 272,000 square feet of office space, Clark County records show.

This huge undertaking seems highly unlikely to be tried today, but it fit with the era. Flooded with easy money, Las Vegas’ real estate market was going wild, and perhaps few projects epitomized the frenzy as much as high-rises. Investors laid out plans for dozens of condo, hotel and other towers last decade, in what supporters called the “Manhattanization” of Las Vegas.

Drilling and blasting for Sullivan Square was slated to start in spring 2007, and the developers held a groundbreaking ceremony that summer with an early-morning launch of eight hot-air balloons, reports said.

But like most proposed high-rise projects from those years, Sullivan Square never came out of the ground. And, like numerous other projects from the boom era, it was hit with litigation.

An architecture firm sued the developers, claiming it was owed about $650,000. Sullivan Square’s general contractor sued the developers, claiming it was owed $1.1 million. And the developers sued a contractor that performed blasting work, alleging the company was overpaid by $32,000 but refused to return the money.

The project’s partners also fought.

Glen, Smith & Glen sued Harcourt in spring 2008 in Clark County District Court, claiming its partner “failed to timely and sufficiently fund the project,” which led to lawsuits and liens and “a halt in construction.”

Glen, Smith & Glen does not appear to be in business anymore, and efforts this week to get comments from Harcourt were unsuccessful.

In hindsight, with Las Vegas and Irish developers teaming up in 2006 on a high-rise project here, Sullivan Square’s outcome seems almost inevitable.

Las Vegas was a poster child for America’s real estate boom and bust – soaring prices and construction followed by widespread foreclosures, job losses and bankruptcies, with abandoned projects littering the valley. Fueled by bank lending, Ireland also had a big housing bubble last decade that, after it burst, left the country with a reported 2,800 abandoned projects by 2010.

Moreover, Harcourt reportedly secured financing for Sullivan Square from Anglo Irish Bank, a heavy real estate lender that was nationalized in 2009 and liquidated.

The bank, according to The Irish Times newspaper, was “synonymous with Ireland’s economic collapse.”

Contact Eli Segall at 702-383-0342 or esegall@reviewjournal.com. Follow @eli_segall on Twitter.

Article sourced from: http://www.reviewjournal.com/business/sale-gaping-reminder-las-vegas-boom-and-bust

Shared Equity Ownership Model(TM)

Lance’s latest business venture is the Shared Equity
Ownership Model(TM).  It has to do with
real estate equity and ownership especially on the commercial real estate side
of things.  It bridges a gap between
developer and tenant relations, and it can bring many benefits. Learn about it
in the press release below:

Lance Bradford Real Estate Introduces Unique

Shared Equity Ownership Model (TM)

Revolutionary Model Provides Building Ownership by Long-Term Tenant

LAS VEGAS, NV / ACCESSWIRE / December 14, 2016 / Lance Bradford, founder/CEO of Stable Development LLC in Las Vegas, Nevada, announces a unique Shared Equity Ownership Model™. With this approach, tenants take ownership of their office space with minimal cash outlay.

Real estate expert Lance Bradford created this model to provide long-term tenants with the opportunity to affordably acquire a share of real estate equity. In turn, the developer receives greater security and stability – a win-win for both parties. According to Bradford, “We are thrilled at the acceptance of our revolutionary approach. Long-term tenants see the value immediately. They can reap the benefits of ownership without the management headaches.”

Stable Development LLC was established with the vision of enabling medical and professional business owners the opportunity for Class A building ownership. The remarkable Shared Equity Ownership Model™ empowers tenants to receive the benefits of ownership, including growth in equity and property appreciation.

Stable Development has the track record to back up this model. With over 410,000 square feet of medical and professional office space in the southern Las Vegas area, Bradford’s company has both performance and staying power. In fact, the company thrived during the recession of 2008-9. Operations have expanded and a full-service architectural division has been added. Stable Development continues to expand its acquisitions, development, property management, and real estate investment services.

“We will continue to grow, both in size and services. We also plan on employing more people in the southern Nevada community,” states Bradford. Originally an accountant, Lance Bradford transitioned his practice into commercial development in 2006. He has since become one of the most trusted and respected executives in the real estate industry. There are significant Las Vegas area projects in his portfolio – and more to come. His reputation is now expanding nationally.

He plans to expand this unique model across the country to California, Texas, Kansas, and New York. In Nevada, the company continues to expand its ownership and operation of professional and medial office space. Commercial development opportunities are also under consideration.

Accredited investors are welcome. For information, please contact Stable Development at www.StableDevelopment.com or call (702)735-5532.

Company Contact:

Lance Bradford
(702) 735-5532
info@stabledevelopment.com

Media Contact:

Anthony Harding
602-740-8334

SOURCE: Stable Development LLC

ReleaseID: 451066

Article sourced from: http://www.live5news.com/story/34055122/news

Tax Credit for Las Vegas

The city of Las Vegas will be getting millions of dollars in a tax credits to reinvest back into the area.  This is promising because it means funding for new projects and development in the area.  Las Vegas’ economy is finally on the upswing after the recession and tax credits like this will continue to help that. Read more about this in the article below.

City Of Las Vegas receives $55M in new markets tax credits

LAS VEGAS (KTNV) –

The city of Las Vegas was notified today that it will receive $55 million in federally-funded New Markets Tax Credits to invest in low-income and underserved communities in southern Nevada.

The U.S. Treasury Department’s New Markets Tax Credits program encourages investment in traditionally underserved communities by providing developers with a tax credit when they make investments in low-income areas.

 
The city of Las Vegas formed its own community development entity, the Las Vegas Community Investment Corporation (LVCIC), to facilitate investment in owner-occupied commercial real estate projects, particularly those involving manufacturing, mixed-use, education and health care.  
 
A typical project would total between $5 million and $15 million.
 
Prior to this federal allotment, the LVCIC received $28 million in New Markets Tax Credits in 2014. The major portion of this federal funding was used for two projects, the restoration of the Historic Westside School and a permanent location for the Nevada Supreme and Appellate courts in downtown Las Vegas.
 
The success of these two projects was part of the criteria that led to the increase in funds for 2016.
 
Rehabilitation on the Historic Westside School was completed this summer. Its interior now includes modern office and retail space for businesses and nonprofits, while the historic exterior appearance was carefully preserved and restored.
 
The school is expected to be a catalyst for further building and revitalization efforts within the community.
 
Currently under construction on the southeast corner of Clark Avenue and Fourth Street is a new home for the Nevada Supreme and Appellate courts. Developers anticipate that this building will open in early 2017.
 
The New Markets Tax Credits program was established by Congress in December. Since its inception, the program has supported the construction of 32 million square feet of manufacturing space, 75 million square feet of office and 57.5 million square feet of retail space.
 
As these communities develop, they become more attractive to investors, creating a ripple effect that spurs more investment.

Article sourced from: http://www.ktnv.com/news/city-of-las-vegas-receives-55m-in-new-markets-tax-credits