Condo Crazy Las Vegas: George Clooney and Ivana Trump and Me
04:12 PM PT, Dec 16 2005
Since leaving the parental nest I have always lived in apartments. I am not fussy as long I've got my books, my music, my cats and a door to get out. So, before I moved here in 1999, I rented the first apartment I found on the Internet and I am still living there now. Few understand why I stay here as my apartment was built in the 80's (ancient by Vegas standards) and has construction problems that are apparent even to me (light switches that are wired backwards, a roof that doesn't keep the rain out, and is so porous that during the summer the air conditioner running full time can't get my two bedroom apartment lower than 85 degrees and, most disturbingly, odd dark stains on the ceiling that each year seem to mysteriously grow). And, yet, I have never really thought of moving. But last week in the mail I got a notice that even my cruddy apartment complex is hoping to go condo and if I am not interested in purchasing all this luxury I will be required to move next year. Yes, Las Vegas has gone condo crazy. In the last 18 months 70 condo towers have been announced. And, now that boom is predictably going bust. The Las Vegas Sun has an article, "LV Condos Toppling Before They Rise," about the condominiums that have failed so far (including Ivana Trump's planned high rise, Ivana Las Vegas). They quote one developer:
"It's the combination of rising construction costs, rising land prices and the fact that the mid- and high-rise condo market (in Las Vegas) is still in its infancy," said John Restrepo, principal of Restrepo Consulting Group.
He said the fever to build a condo tower in Las Vegas was equivalent to a gold rush. But getting a condo project off the ground is tougher than drawing up a rendering and having a slick marketing campaign.
"There's a certain segment that are more promoters than developers, more snake-oil salesmen," Restrepo said.
more promoters than developers, more snake-oil salesmen," Restrepo said.
The article features this thrilling description of the Ivana project:
Ivana, originally called the Summit, was proposed to be one of the world's tallest residential towers when built to a height of 900 feet tall and would feature a $35 million penthouse dubbed the "cockpit."
The Las Vegas Review-Journal has an article, "Now You See Them..." about which ones are likely to go bust next (most provocatively, Las Ramblas, a proposed $3 billion development backed by actor George Clooney). The article quotes an anonymous developer on the wild times in condo world:
"Icon is on the ropes. Brokers in the market are nervous and there are rumblings about the project not getting built due to high construction costs," said the developer, who requested anonymity. "Related made the contractor market angry in Vegas with their regal attitude and got killed on pricing. I can personally confirm that Related wants to exit the market, which means Las Ramblas is (dead on arrival)."
So it is with earnest hope that my landlords read both these articles with care.
(photo by Pascal Le Segretain/Getty)
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Yes, Ivana , she looks like a very nice lady , they should let her do what she wants , get on with it , let's get started .
Posted by: Alan D Enstoss | December 16, 2005 at 07:59 PM
Does any of the architects building high rise apartments and/or condo complexes ever live in one of them for a month or two ?
The air in the long hallways is unbreathable(toxic,inhumane) as it's not usually vented, simply recycled through air conditioner/heater.
Posted by: harry kasvic | December 16, 2005 at 10:55 PM
Yeah I went through the same thing, my apartment in the Village Green complex at the Las Vegas Country Club summarily booted everybody out (including little old ladies who'd lived there for years who had nowhere else to go), then slapped on a coat of paint (actually some dead-on-arrival new landscaping), renamed it "Monterey" even though it has absolutely nothing in common with the northern California coast, and put up a laughable go-go-groovester website. I can't wait for all the suckers oops I mean fabulous new owners to discover too late that the entire plumbing system underneath is rotten, and your water is turned off unannounced several times a month for hours at a time. Oh, and the swarms of huge cockroaches that have the run of the place in summer ! Gosh, you won't read about THOSE problems in the glamorous expensive sales materials ..
Posted by: Russ Rodderback | December 18, 2005 at 01:19 AM
Even three to four years ago, a nice 2 bedroom, two bath apartment-style (not high rise) condo cost well less than $100,000 a year here in Las Vegas. But the housing boom has inflated property values so much that people are paying $150,000 and up for what is basically an old apartment.
Crazy! It is like buying car that used to be a rental car ... no matter how good (or not) that the maintainance has been, it's been over a lot of speed bumps and been driven hard by a lot of drivers.
The fact that so many of the high rise condos are failing to even get built is no surprise. A handful with brand-names (Palms, Hard Rock, Donald Trump) will sell just because people want to be associated with the name. But the bottom line is that the high-rise condo projects (in general) start at $400,000 and more for as little as 500 sq. ft.
What on earth made them think that people would be willing to pay a half million dollars for what is basically a hotel room with a kitchen???
I'm looking at the various mid-rose condos going in off The Las Vegas Strip and around parts of the Las Vegas Valley and I see some value there. New construction, reasonable sq. ft. for the money, and tons of ammenities. So my crystal ball says that those kinds of projects will do very well.
But the original author is very correct: If you are buying a condo conversion (basially an old apartment), I'd pay for the best inspection possible and have an attorney go over the warranty.
One more thing: Mold can and does happen here in the desert. A leaky pipe indoors in the wall is all it takes. I know ... I had to move out of my home earlier this year because of a serious mold issue and it made me very sick.
So if you are the least bit concerned about the possibility of mold contamination or are someone (like me) who it makes sicker than most, spend the extra $350 on a seperate mold test. Regular home inspectors will note it if they see it, but they don't test for the presence of it. Fixing mold issues can cost tens of thousands and even in a condo conversion, it is on your dime to fix it inside your condo.
Posted by: Ted "Mr. Las Vegas Shows" Newkirk | December 18, 2005 at 03:06 PM
PS. I can't decide if Ivana looks like the BEFORE or AFTER photo for unsuccessful plastic surgery. Who in their right mind would pay to live across the street from SlutSlot City in a towering cinderblock mess of faux-glam Cubicles à la Dumped-Divorcée ..
Posted by: Russ Rodderback | December 19, 2005 at 05:43 PM
Clooneys bunch will build Las Ramblas and it will do very well. They are/have /will target a niche that no one else has.
Lots of jealousy going on now.
And lots wheelin and dealin. Very
crooked shady deals.
As they over build and as they cut into each other...we the public will benefit with much mre REDUCED prices.
By the way Donald Trumps condos will lead the way and they will do ery well. The Donald is on a big roll......
Posted by: jer hennen | December 20, 2005 at 12:03 AM
Nobody has mentioned Panorama Towers. If you are looking for a Vegas high rise project that is already under construction and is going to happen, check out Panorama Towers. With one tower topped off and a second tower halfway out of the ground, Panorama Towers is a sure bet. We opened two years ago and currently have about 1000 condos under hard contract. You cannot beat the location and Las Vegas Strip views from Dean Martin Drive and Harmon. Panorama Towers is walking distance to Bellagio and the upcoming multi-billion dollar MGM City Center. Our tower one buyers are excited to move into their new home by summer 2006. Visit http://www.michellelorenzo.com for more details about Panoramama Towers.
Posted by: Michelle Lorenzo | December 21, 2005 at 01:22 PM
Shame on you! That photo of Ivanna scared my dog!
Posted by: Charles Cline | December 22, 2005 at 06:16 PM
Whats up with Ivana Trumps reality show, "Ivana Young Man?"
When is and where is it going to air?
Posted by: Leslie Delback | January 06, 2006 at 10:29 AM
Here is what is going on:
Some of these projects (IMO) were never intended to be built - such as the 'Ivana'. The game is to hype the project, using a celebrity, then sell off the land for $25 million per acre. Not bad for a few press releases and a little pay-off to Ivana herself
Most of the condos are not going to be built. Why? The builders have underestimated the skyrocketing construction/material costs. These are skyrocketing because there are several humongous casino/hotel projects coming online soon. MGM's Citycenter, Stardust/Body 'Echelon Place' and most likely a huge Harrah's project.
What happens is that the casino developers pay top, top dollar for the labor/materials because time is money, the sooner they get it built, the sooner they make money from the casinos. Not so for a stand-alone condo. They only make money from the sale of the condo. So, they are in no particular hurry to have the condo built, they are only concerned about price/cost of labor/materials. Yet, with these humongous projects gobbling up everything, the condo projects are forced to pay casino-development prices. The numbers just don't work (unless they re-price their condos for $1 million, with all the associated lawsuits) so they are going to quit.
The ONLY sensible play is the condo-hotel. MGM Residences is by far the best. MGM/Turnberry locked up reasonable prics for constuction/land and they are nearly sold out - the first tower is nearly done. There will be high occupancy rate, high hotel nightly rates, including weekday due to convention center.
By the way, Panorama towers is withing walking distance to Bellagio if you don't mind walking over a freeway. Let's get real.
Buy MGM Residences if you can. Maybe Cosmopolitan, otherwise, forget it.
Vic
Posted by: Vegas Vic | January 06, 2006 at 05:56 PM
Ivana's spot on the strip is up for sale already. For a mere $49,000,000. The developer sold off the parcel Liberty Tower was going to be built on for over $5 mil, after buying it for 900k. Vegas Vic forgot to mention Sky Las Vegas. Its on the strip as well. Panorama is building a fourth tower and several other projects are going forward now. Considering the amount of high rise projects, the cancellation rate is very low, at least for now. Condo conversions are slowing down as well.
Posted by: Las Vegas High Rise | March 19, 2006 at 07:29 PM