DOWNTOWN AMBITION

If you can get past the look and location of Fremont Street Lofts, the interior design and price per square foot stack up nicely against its high-falutin' neighbors just a few blocks west.

The three-story lofts are under construction in the 1900 block of east Fremont Street, an area defined by cheap motels, dive bars, used car lots and rundown businesses. They're made of galvanized aluminum siding and painted blue, yellow, red and white.

At $290,000 to $350,000, the 1,800- to 2,000-square-foot units are about half the price of similar-size condos at SoHo Lofts, Newport Lofts and Streamline Tower, three developments that have boosted Mayor Oscar Goodman's efforts to revitalize downtown.

Developer Larry Davis of Houston-based Urban Lofts Townhomes said his projects have helped transform the urban core of major cities such as Houston, Dallas and Atlanta. He wants to provide attainable housing in an area of Las Vegas that many local residents scoff at.

"Everywhere I go, they say, 'You're building in Las Vegas? Are you crazy?'" Davis said Monday. "We laugh. Houston and Dallas ... you can't believe some of the neighborhoods where we've built."

The lofts' design, coupled with practical materials, allows the company to keep pricing down and opens the door for urban-minded people to buy a home, he said.

Prices started at $259,000 when Davis broke ground in August 2005 on Eleventh Street Lofts, his first project in downtown Las Vegas. All but a half dozen of those 31 units have been sold and the remaining units are listed at $360,000. The first phase of Fremont Street Lofts is 30 percent sold.

"Look at who's buying ... the chief financial officer of a casino, teachers, city workers, small-business owners," Davis said. "When you're able to live in town, you're not dealing with the traffic. You're able to enjoy night spots that are downtown and entertainment that's in town and it is where the city began."

Housing analyst Dennis Smith of Home Builders Research is not completely sold on the idea of an urban renaissance in Las Vegas, despite all of the hype.

East Fremont Street is being touted as the new entertainment district for downtown with $5.5 million in landscaping and street improvements and the arts district has evolved into a viable business area over the last five years. But more residential projects have failed than succeeded.

"It is moving slowly," Smith said. "The hype of the movement to the downtown area has cooled tremendously since the 2003-2004 boom because investors have left the market. Most of the units that appear to be sold in these downtown condos or lofts, many were made by investors. Now what we have is completed units for resale that compete with new unsold units and rentals."

A third-quarter luxury condo market report from Restrepo Consulting Group showed downtown with 288 completed high-rise and midrise units, 1,008 units actively selling, 2,550 units proposed and 1,729 units canceled or suspended. Downtown Las Vegas represents 11.6 percent of the valley's market.

As of Sept. 30, there were 339 luxury condos for resale at a median price of $799,000, or $503 a square foot, Restrepo reported.

While luxury condo sales increased 48 percent from a year ago, the median price declined 17 percent, which shows the condo market is still weaker than the overall housing market, real estate consultant John Restrepo said.

"The decrease in the luxury condo median price is due to the burst in the housing market bubble, especially the investor and second-home segment," he said. "Many of these buyers are now trying to dump units in an effort to limit their losses."

Restrepo said he wasn't familiar with Fremont Street Lofts, but wondered how close they were to shopping and services. He defines luxury condos as at least $300 a square foot.

Smith of Home Builders Research said the lofts are entering a competitive, soft real estate market.

"Location is very important," he said. "It could be the most important ingredient in buying downtown. Given the lack of investors, new buyers are going to be looking for the best location to get the best value for their buck."

Because townhomes are considered single-family residences as opposed to multifamily, buyers can qualify for financing at lower interest rates, Davis said.

He said the lifestyle appeals to young professionals and empty-nesters who don't want to deal with the upkeep of a house and yard in the suburbs. They like the large, open space of a loft rather than the traditional separate living room, dining room and kitchen.

Also, the security of the townhomes' design appeals to women who can drive into their garages and close the door behind them without having to walk outside. About one-fourth of his buyers are single women, Davis said.

Contact reporter Hubble Smith at hsmith@reviewjournal.com or (702) 383-0491.