Looks like California’s loss is Nevada’s gain.
In the wake of a $6 billion-per-year tax increase on high earners in the Golden State, Nevada brokers have reported big jumps in luxury home sales.
Kenneth Lowman, broker-owner of Luxury Homes of Las Vegas, credited his boost in business to a surge in affluent Californians flooding the local market. Lowman said 2013 was his best sales year ever, with $73 million in personal sales, $150 million in company sales, a company record for units closed and an average sales price of more than $1.2 million.
High-end home sales have also spiked in other parts of the state thanks to California refugees. An August report in the Tahoe Daily Tribune said brokers were seeing more closings in the wealthy enclaves that line Lake Tahoe, and 40 percent or more of those sales were to Californians looking to avoid the new taxes.
Of course, in a market with a median single-family home value of roughly $185,000, you might think the luxury-home segment isn’t a big deal. But the niche matters as a key gauge of the broader market, Lowman said.
“It’s following the smart money. Wealthy people buying $3.5 million houses are usually very well-educated and in tune with the economy and business,” Lowman said. “So if they’re making the decision that it’s a good time to buy, it’s a reflection that people in the average price range should definitely take note of.”
There are similarities between the high end and the rest of the market. As with the homes of the hoi polloi, luxury prices dropped by 50 percent or more, and foreclosures spiked in the downturn. At the depths of the market, Lowman said, about 30 percent of upscale sales were bank-owned properties. And now, prices are up about 30 percent year over year, similar to gains in the rest of the market.
Lowman said he expects 2014 to be about as strong as 2013. That’s because few new luxury homes got built in the recession, and that’s created a supply crunch that will persist at least through the year’s end.
“Barring any other new, major economic disturbance, it’s pretty likely we’re going to see price increases for years to come,” Lowman said. “The worst is behind us, and the future looks bright.”
■ Tina Taylor and Tim Erickson of Marcus &Millichap Real Estate Investment Services represented Tri-Lin Holdings LLC in its $1.25 million cash sale of Rainbow Center, a 15,011-square-foot office complex at 1801 S. Rainbow Blvd. The buyer was locally based Peiterson Limited Partnership.
■ Brokers with Colliers International recently helped close several sales and leases.
Josh Michaeli represented R. Cohen in the $2.7 million purchase of a 33,000-square-foot property inside the Rainbow Express Village at 1750 S. Rainbow Blvd. Brian Riffel represented seller VFC Properties 23 LLC.
Riffel also helped VFC Properties 24 LLC sell a mixed-use building to Carson 14 LLC. The 50,000-square-foot property at 100 S. 14th St. in the Fremont Assisted Living Center sold for $650,000.
David Grant helped CML-NV GMF LLC of Florida sell 6.42 acres of commercial land at 10835 S. Eastern Ave.inside the Eastern Hills Retail Center. Brian Pankratz of CBRE represented the buyer, Spensa Nevada V LLC, in the $1.7 million deal.
Dean Willmore, SIOR, represented Kinetico Water Treatment Systems in its purchase of a 26,570-square-foot industrial building at 1620 W. Sunset Road in the Sunset Village Business Park. Dan Adamson of ROI Commercial Real Estate represented seller BFD Henderson LP in the $1.5 million deal.
Vince Schettler represented seller Hualapai and 215 LLC in its sale of 3 acres to Ryland Homes. Ryland bought the property at Hualapai and the 215 Beltway for $600,000.
Michael De Lew SIOR and Greg Pancirov SIOR worked with tenant Whole Harvest Foods-West LLC to broker a lease on 32,095 square feet of industrial space at 4980 Statz St. inside the Golden Triangle Business Park. Donna Anderson of CB Richard Ellis represented landlord Golden Triangle Industrial Park LLC in the $353,030 deal.
■ William Skupa and Gino Vincent of MINT Property Group represented Denco LLC in its $1.7 million purchase of a 6,754-square-foot, multitenant office building at 3039 W. Horizon Ridge Parkway inside Vantage at Horizon Ridge. The 6-year-old building is 100 percent occupied by three tenants. Joseph DeSimone of First Federal Realty DeSimone represented the seller, Vantage at Horizon Ridge LLC.
Skupa and Vincent also represented Meadows Bank in its sale of a vacant, 3,950-square-foot convenience store and gas station at 8816 S. Eastern Ave. inside Colonnade Square at Pebble. Joe Kennedy and Matt Nelson represented the buyer, South Eastern Capital Management. The Clark County assessor’s website hadn’t posted a sale price at press time.
■ Sun Commercial Real Estate brokers completed two recent deals of note.
Cathy Jones, Paul Miachika, Jessica Beall and Roy Fritz represented WG Stephanie LLC in its sale of 4.61 acres near Stephanie Street and Wigwam Parkway. LVCSD Saddle LLC bought the property for $1.5 million. Brian Sorrentino of ROI Commercial Real Estate represented the buyer.
Jeff Berg and Mica Berg represented 5439 South Decatur Boulevard LLC in its sale of an 8,390-square-foot industrial building at 5439 S. Decatur Blvd. LCV Holdings LLC bought the building for $433,000.
Contact reporter Jennifer Robison at firstname.lastname@example.org. Follow @J_Robison1 on Twitter.