Two more high-rise condominium projects have financial trouble

Two luxury high-rise condominium projects on opposite ends of Las Vegas Boulevard have run into financial trouble, though both developers remain optimistic about the market’s long-term prospects.

The 275-unit Streamline Tower in downtown Las Vegas filed for Chapter 11 bankruptcy protection Wednesday, while the twin-tower, 359-unit One Las Vegas development near Windmill Lane has been taken over by the lender.

Both projects were financed by Corus Bank of Chicago. Estimated construction cost was $150 million for One Las Vegas and $125 million for Streamline.

Streamline developer Dusty Allen said the project is 10 percent sold and actively selling units as the reorganization plan works through the courts. Streamline received its certificate of occupancy in September and initial move-ins have now been completed, he said.

“We’re not victims of this market. We’re participants in it,” Allen said Thursday. “This is a global economic meltdown we’re participating in. It takes some creativity to work though this.”

One Las Vegas developer Wayne Krygier, who’s been in Las Vegas for 20 years, said the fundamentals that helped Las Vegas grow from 500,000 population to 2 million remain in place.

“We still have in-migration from California. We still have inexpensive housing. We still have tax benefits. The jobs will come back,” Krygier said. “I’m optimistic.”

Corus will be offering units at One Las Vegas at a discount of about 50 percent from original prices that started in the $400,000s, he said. The development was completed in June and had 40 escrow closings.

“I think it’s a great opportunity. It’s the nature of the economy, the resetting of prices, just like the hotel rooms,” Krygier said. “But I think the bank is being proactive rather than reactive. They’re recognizing the resetting of value. Certain people are still asking $400 a square foot.”

Corus is one of two banks that were highly exposed to the Las Vegas condo market, the other being Hypo Real Estate Corp., a New York-based subsidiary of Hypo Real Estate Bank International.

Three years ago, Corus had 90 percent of its $9 billion loan portfolio allocated to condo projects around the country, including $750 million in Las Vegas. The bank funded Juhl ($106 million), Panorama ($236 million), Allure ($150 million), Streamline ($123 million) and One Las Vegas ($140 million).

The latest events follow several other Las Vegas condo projects going back to the lenders, including Newport Lofts, Cosmopolitan, Turnberry Towers and Mira Villa.

Allure held an auction in April for 10 units that were reserved with 15 percent nonrefundable deposits. Buyers canceled their contracts either because they could not close escrow or they felt values had dropped to the point that it made more sense to walk away from the transaction.

Alan Schactman, vice president of Chicago-based Fifield Cos., developer of Allure, would not discuss specific results from the auction, other than to say some minimum bids were not met.

“There was bidding and interest on all 10 units and we are currently working with the winning bidders,” he said. “This was not an absolute auction where the property is automatically sold to the highest bidder regardless of the amount of the winning bid. We are currently working with these folks to meet the minimum reserves.”

The auction reaffirmed the ongoing interest in luxury high-rise living in Las Vegas and underscored the value that is currently available in the market, Schactman said.

High-rise condos accounted for 4 percent of home sales in March with 98 units changing hands, Frank Nason of Residential Resources reported.

 

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

ad-high_impact_4
News
NSPCA Gets Kittens From LA
Man killed during road-rage incident
Las Vegas police are looking for two men involved in the shooting death of a man outside a 7-Eleven story at Bonanza Road and Maryland Parkway on Nov. 12, 2018. (Las Vegas Metropolitan Police Department)
VA Southern Nevada Healthcare System hosts Veterans Day Car Show and BBQ
The 4th Annual Veterans Day Car Show and BBQ is held in celebration of Veterans Day at the VA Southern Nevada Healthcare System Medical Center in North Las Vegas, Saturday, Nov. 10, 2018. (Caroline Brehman/Las Vegas Review-Journal)
Wildfires in Southern California
Wildfires hit Ventura County, Calif., on Nov. 9, 2018. (Richard Brian/Las Vegas Review-Journal)
Dedication of Nevada's Battle Born memorial
The state of Nevada on Friday dedicated its Battle Born memorial honoring 895 state residents who have died in America’s wars.
Las Vegas police and Sunrise Children's Hospital hope to prevent infant deaths
The Metropolitan Police Department and Sunrise Children's Hospital held a press conference to get the message out on preventable infant deaths attributed to "co-sleeping" and other unsafe sleeping habits. (K.M. Cannon/Las Vegas Review-Journal)
No serious injuries after car hits tree in south Las Vegas
One person reported minor injuries but wasn’t hospitalized after a Wednesday morning crash in the south valley.
Nellis Air Force Base keeps airmen fed
Nellis Air Force Bass airmen have delicious and healthy food items, and a variety of dining facilities to choose from. (K.M. Cannon/Las Vegas Review-Journal)
Suspicious package found at central Las Vegas post office
Las Vegas police determined that a suspicious package found Monday morning at a central valley post office was not a threat.
Suspicious package found at central Las Vegas post office
Police evacuated the area around the Garside Station post office early Monday morning near Oakey and Decatur boulevards.
With husband's passing, family in limbo for workers' comp claim
Meredith Tracy's husand, Russell Tracy, died more than a year ago on his first day working for a new company when he fell 22 feet into a manhole that was not properly safeguarded. His employer was fined $82,000 in penalties for unsafe practices, but the company has denied her workers' compensation claim, leaving her with no compensation since the death. Rachel Aston Las Vegas Review-Journal @rookie__rae
With husband's passing, family in limbo for workers' comp claim
Meredith Tracy's husand, Russell Tracy, died more than a year ago on his first day working for a new company when he fell 22 feet into a manhole that was not properly safeguarded. His employer was fined $82,000 in penalties for unsafe practices, but the company has denied her workers' compensation claim, leaving her with no compensation since the death. Rachel Aston Las Vegas Review-Journal @rookie__rae
Las Vegas family shares flu warning
Carlo and Brenda Occhipinti lost their son, Carlo Jr., or “Junior,” to the flu last year.
Author Randall Cannon shares an anecdote about Stadust Raceway
Author Randall Cannon shares an anecdote about Dan Blocker, who played Hoss Cartwright on the TV show "Bonanza," and the actor's passion for auto racing at Stardust International Raceway in Las Vegas during the 1960s. (Ron Kantowski/Las Vegas Review-Journal.)
Project Neon 85 percent complete
On Wednesday morning Oct. 31, Interstate 15 northbound lane restrictions were removed opening up Exit 41 to Charleston Blvd. On Thursday Nov. 1, Interstate 15 southbound lane restrictions were removed. The new southbound off-ramp to Sahara Ave. and Highland Dr. also opened Thursday, November 1. With Project Neon 85% finished the flow of traffic on Interstate 15 has substantially diminished. (Michael Quine/Las Vegas Review-Journal)
Girl killed after jumping from bridge onto 215 Beltway in Henderson
Eastbound lanes of the 215 Beltway are shut down by the Nevada Highway Patrol after a female juvenile jumped from the 215 overpass at Stephanie and was struck by a FedEx tractor trailer. Michael Quine/Las Vegas Review-Journal @Vegas88s
Kristallnacht story
An interview with 94-year-old Holocaust survivor Alexander Kuechel who survived seven concentration camps and didn’t leave Germany until after World War II was over. (Mia Sims/Las Vegas Review-Journal)
1 dead in central Las Vegas crash
An early Wednesday morning crash left at least one person dead and another injured. The crash was reported just around 3 a.m. at the intersection of Flamingo Road and Swenson Street. At least two vehicles were involved in the crash, one of which caught fire. Debris was scattered across the intersection as police combed the area as they investigated the scene. Flamingo is blocked in both directions between Swenson and Cambridge Street. Northbound Swenson is blocked at the intersection.
Richard Knoeppel named the 2018 Nevada Teacher of the Year
Richard Knoeppel, an architecture design instructor at the Advanced technologies Academy, named the 2018 Nevada Teacher of the Year on Monday, Oct. 29, 2018. (Bizuayehu Tesfaye/Las Vegas Review-Journal) @bizutesfaye
Mojave Poppy Bees
(Zach Portman/University of Minnesota Department of Entomology) Male Mojave poppy bees exhibit territorial fighting behavior. The Center for Biological Diversity wants the bee, found only in Clark County, to be added to the endangered species list.
Clark County Schools announce random searches
Clark County School District middle and high school students will be subject to random searches for weapons under a new initiative to combat the wave of guns found on campus. (Amelia Pak-Harvey/Las Vegas Review-Journal)
Ron Jeremy and Heidi Fleiss React to Dennis Hof's Death
Ron Jeremy and Heidi Fleiss speak about their friend and prominent brothel owner Dennis Hof's death at Dennis Hof's Love Ranch. (Benjamin Hager/Las Vegas Review-Journal)
Nevada brothel owner Dennis Hof has died
Nevada brothel owner and Republican candidate for Nevada State Assembly District 36, Dennis Hof has died. He was 72. Nye County Sherriff's office confirmed. Hof owned Love Ranch brothel, located in Crystal, Nevada.
Las Vegas police investigate suspicious package at shopping center
Las Vegas police evacuated a southeast valley shopping center at Flamingo and Sandhill roads early Tuesday morning while they investigated reports of a suspicious package. (Max Michor/Las Vegas Review-Journal)
The Las Vegas Metro hosts the K-9 Trials
The Las Vegas Metro K-9 Trials returns to the Orleans Arena to benefit the Friends For Las Vegas Police K-9 group.
Kingman residents love their little town
Residents of Kingman, Ariz. talk about how they ended up living in the Route 66 town, and what they love about their quiet community. (K.M. Cannon/Las Vegas Review-Journal)
Service at Southern Nevada Veterans Memorial Cemetery
Twelve unclaimed veterans are honored at Southern Nevada Veterans Memorial Cemetery in Boulder City in Oct. 9, 2018. (Briana Erickson/Las Vegas Review-Journal)
Las Vegas house prices reach highest level in 11 years
Las Vegas house prices are rising But so is the amount of available homes on the market Still, properties priced below $300,000 are selling fast And September was the first time since June 2007 that the median house price reached the $300,000 mark Las Vegas home prices have been rising at one of the fastest rates in the country over the past year Recent data show the market is now less affordable than the national average
National Night Out
About 100 Summerlin residents gathered at Park Centre Dr. in Summerlin on Tuesday for National Night Out. Lt. Joshua Bitsko with Las Vegas Metro, played with 3-year-old David who was dressed as a police officer. Face painting, fire truck tours and more kept kids busy as parents roamed behind them. (Mia Sims/Las Vegas Review-Journal)
Rural homeless issue comes to a head in Pahrump
On Sept. 12, Pahrump sheriff deputies told residents of a homeless encampment on private property that they had 15 minutes to vacate and grab their belongings. That decision might face some legal consequences. (Rachel Aston/Las Vegas Review-Journal)
TOP NEWS
News Headlines
Add Event
Home Front Page Footer Listing
Circular
You May Like

You May Like