Summerlin developer sells less land but posts higher average prices

Summerlin’s developer sold far less land to homebuilders but notched much-higher average prices in the first quarter versus last year, when a bulk sale helped create the current seesaw.

Howard Hughes Corp. on Wednesday reported that it sold 37.7 acres of residential land in Summerlin – Las Vegas’ largest master-planned community – in the three months ending March 31 for $26.3 million combined, or $697,000 per acre.

In the same period last year, the developer said, it sold 118.1 acres for $42.1 million, or $357,000 per acre.

The imbalance resulted from Howard Hughes’ $40 million sale, in March 2016, to Pulte Homes for the long-planned Reverence community west of the 215 Beltway between Lake Mead Boulevard and Cheyenne Avenue.

Dallas-based Howard Hughes released the first quarter numbers as part of its corporate earnings report. The company, which also has properties in Hawaii, Texas, New York and other states, booked $5.7 million in profit in the first quarter, down 96 percent from the same period last year.

The steep drop came after the company notched $32.2 million in gains on property sales in the first quarter, down from $140.5 million a year earlier.

Also in the report:

— Builders sold 207 new homes in Summerlin in the first quarter, up 38.9 percent from the same period last year. But the median sales price slipped 2 percent to $550,000.

— The two-building, 180,000-square-foot office complex at Hualapai Way and the 215 Beltway that Howard Hughes plans to develop for slot-machine maker Aristocrat Technologies is expected to cost $45 million. The developer, which formally unveiled project plans Monday, is seeking financing and said the campus is slated to be finished next year.

— The 124-unit Constellation apartment complex, a joint venture between Howard Hughes and The Calida Group, is 77.4 percent occupied and 85.5 percent leased. Construction of the project, located off Town Center Drive and Charleston Boulevard, started in February 2015 and is being finished in phases. Tenants started moving in during the third quarter last year.

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

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