Construction on Mercer project continues

Developer Jim Letchinger is "proceeding cautiously" with construction of the $50 million Mercer condominium project on Tropicana Avenue west of the Las Vegas Beltway.

Letchinger, president of Chicago-based JDL Development, said the 113-unit midrise condo project is about 60 percent sold and scheduled to open by the middle of next year.

Even as the Las Vegas housing market struggled, JDL poured concrete footings for the podium deck. Walls are framed for the first floor and shoring is in place for the parking garage.

"We've decided, right or wrong, that we need to build it and our bank is sticking with us," Letchinger said. "We're in pretty deep. We think we have a good product and a decent price."

Two-bedroom units are priced from the low $400,000s, he said.

The stalling or cancellation of competing projects such as Spa Lofts, Promenade at Rainbow and Sullivan Square has opened doors at The Mercer, Letchinger said. He's had three sales in the last month.

Buyer demographics range from a woman architect who recently moved here from New Orleans to "empty nesters" who are looking to downsize from their homes in Siena, an age-restricted community in the same area.

First American Bank of Chicago is financing The Mercer. Vanguard Construction is the general contractor.

LAND VALUES: Applied Analysis, a Las Vegas business advisory firm, reported record-low land sales and declining value in the second quarter.

Roughly 232 acres were sold, compared with 252 acres in the previous quarter and 531 acres in the same quarter a year ago.

The average price was slightly more than $4 million an acre, more than double a year ago. However, taking out 66.5 acres of premium resort property that sold during the quarter, the price was $570,279 an acre, or $13.09 a square foot. That's down 20.6 percent from $718,511 an acre, or $16.49 a square foot, in the year-ago period.

Roughly 59 acres transferred title for $751 million, or $12.8 million an acre, on Harmon Avenue near Koval Lane, former site of the failed Las Ramblas project and W Las Vegas condo-hotel.

STEEL FACILITY: PDM Steel of Las Vegas has contracted Core Construction to build a 95,000-square-foot distribution center on 9 acres at Alto Avenue and Abels Lane. The industrial building will have a 5,280-square-foot sales office, 84,840-square-foot warehouse and 4,880-square-foot shipping office. Construction of the $8.83 million project began in early July; completion is scheduled for March.

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