Las Vegas - New Construction

With Las Vegas foreclosures keeping prices down in all segments of the market, Las Vegas homebuilders and commercial developers are looking for ways to cut expenses during the development stage so that they can keep prices competitive with existing projects. Many are exploring new building systems that incorporate "green real estate" for energy savings as well.

In the Las Vegas condos high rise market, a yet to be announced project has a cost cutting system that will save the developer more than a third over the traditional high rise building expense building from the ground up. The developer says this will allow him to price his units competitively with low rise product, and blow other high rise projects out of the water.

In downtown Las Vegas VERGE, a midrise project, is utilizing more new technology to build their product in the redevelopment district. Inspired by architect Dennis Rusk, VERGE was initially priced about 20% under existing competition.

Both projects will also offer special financing on Las Vegas mortgage loans to entice Las Vegas new homes buyers to the table.

And innovation is also coming to the Las Vegas commercial real estate sector, which until now has resisted change. Booming market conditions dissuaded builders from considering out of the box solutions, but a slow down has them scrambling for alternatives. The following are excerpts from an article about a new commercial building application:

Developer touts new construction concept
By Mark Hansel / Staff Writer

A local developer has introduced an innovative building concept to the Las Vegas market.
LM Construction is using the Koreteck system - a series of connected panels that can be installed using a small crew with minimal equipment to quickly enclose a building - at Wagon Trail Village, a shopping center at Decatur Boulevard and Wagon Trail Avenue, just off Interstate 215.
Larry Monkarsh, owner of LM Construction, said this is the first time Koreteck has been used in the valley.

Monkarsh is a third-generation contractor and developer, and LM Construction has built more than 3 million square feet of industrial and commercial space. Local projects include the Arrowhead Commerce Center on Pearl Street, and the Arroyo, adjacent to I-215 between Buffalo Drive and Rainbow Boulevard.

He has been looking for a project that would be a good fit for Koreteck, but had a hard time persuading local partners of its value.

"Everybody I brought this idea to thought I was crazy," Monkarsh said. "Now I believe the market is ready for this product."

Monkarsh said the development business is very much an "if-it's-not-broke-don't-fix-it" industry and with the prolonged success of proven methods in the valley, builders were reluctant to explore new concepts.

Changes in the development landscape, including increased construction costs and slumping real estate sales, have made the industry more receptive to alternatives, especially those that reduce cost.

A product with the potential to shorten a development timeline and decrease the number of workers needed on a job makes more sense now than ever, even if it has never been tried in Las Vegas before.

In a recent demonstration at Wagon Trail Village, a crew of five was able to completely attach the product to a 50-foot-wide, 25-foot-tall end wall in less than an hour.

Although developers who market Koreteck probably cringe at the comparison, the product's exterior looks remarkably like Styrofoam, which may explain the reluctance of some to embrace its use.

Kris Kutterer of Virginia-based Koreteck said, however, that in this case looks are deceiving.
Koreteck, he said, is extremely durable and consists of a solid, galvanized 20-gauge steel core surrounded by polystyrene insulation. It can be ordered in heights up to 18 feet, which are stackable for greater heights. Widths are 2 to 4 feet with solid, noncavity construction in 6 or 8 inch thicknesses. Interior and exterior finishes are applied as they are with other building material.

Kutterer said the product also offers energy savings over traditional building methods with heating and cooling systems, regardless of climate and location.

The monolithic (single-piece) nature of the insulation that is formed around the metal core increases efficiency by eliminating the thermal bridging at the panel-to-panel connection used in conventional wall construction. Although the amount of credits vary by market, Kutterer says the system adds points toward Leadership in Energy and Environmental Design certification.
Modifications, Kutterer said, are much simpler than traditional brick-and-mortar construction because panels can be easily removed to install an additional entrance or window.
"We can pretty much modify a project to suit a change in our clients needs, with a minimal increase in costs to them," Kutterer said.

Wagon Trail Village, Kutterer says, is typical of the type of project Koreteck was designed for. The roughly 24,000-square-foot center will include two future pad sites along Wagon Trail Avenue.

Koreteck can be custom designed for a client almost as a kit, with predetermined specifications and custom-made, numbered pieces shipped to the site. If a piece is damaged during construction, it can be reordered by number. Mark Hansel covers retail and Las Vegas homes for sale for In Business Las Vegas and its sister publication, the Las Vegas Sun. He can be reached at 259-4069

Las Vegas Real Estate - Media Slow to Report Good News

It has long been my contention that the national media created both the real estate boom of 2004 and 2005, and then the real estate bust in 2006 and 2007. But unfortunately, bad news sells better than good news, and so the busts tend to last longer. Buyers are timidly trying to come back into the market, yet every new article about the sad shape of the economy makes them wonder if the time is right. Locally, the big question is: When is the Las Vegas housing market going to turn around? Sales of existing homes have picked up this spring, dropping housing inventory to a thirteen month supply, and in April the market had its first year over year increase in more than two years. The number of single family Las Vegas homes for sale rose for the fifth consecutive month to 2,206 in May, a 29.2 percent increase from a year ago. Applied Analysis, a Las Vegas-based financial consultancy, listed less than 22,000 homes in the resale inventory as of June 2, the lowest total since February 2007.

The number of contingent and pending sales has been escalating since the beginning of the year. About 45 percent of contingent sales have been identified as "short sales," or sales in which the lender will agree to accept less than the mortgage balance owed against the property as well as Las Vegas foreclosures. But local Las Vegas real estate agents are reporting multiple offers on homes under $225,000, reminiscent of 2004 when buyers were lucky to have two or three homes to choose from. Jackie Goodman, an agent on our team with Prudential Americana, started out with 21 homes from the MLS system last week to preview for her client, and 18 already had offers in on them waiting for final seller approval! Jackie had to start all over again to find enough good properties to show her client who was discouraged that her favorites had already sold.

And we are getting this type activity despite the “experts” who declare Las Vegas will see a 30% decline in the next few months. Are prices down? Yes, of course they are. But with the strong job growth and ever increasing population coupled with a steadily diminishing supply, my own personal prediction is that we will start to see actual appreciation in early 2009.

And fortunately the Fed is cooperating by keeping interest rates down near all time lows, even though credit restrictions are limiting the Las Vegas mortgages programs buyers have to choose from. Right now FHA is the most popular choice as purchasers that are buying a primary residence can still do a version of 100% financing through the Nehemiah program where the seller contributes 6% for down payment and closing costs.

So if you are wondering if now is the time to buy Las Vegas homes, well, they don’t ring a bell when the market hits bottom, but all the signs are there. And if you are trying to sell your home, hang in there, baby, better times are ahead as the market comes around to being more balanced!

Age Restricted High Rise Condos Coming to Las Vegas?

Las Vegas is a retirement haven for the up and coming baby boomers. Clark County already boasts four large Las Vegas Sun City communities as well as a plethora of smaller age restricted neighborhoods. Prospective residents are looking for three things: no state income tax, warm weather and a sustainable cost of living. Florida, Texas and Nevada are the most popular states with no state income tax that retirees are considering.

Because of hurricane damage over the past few years Florida's insurance rates have gone through the roof and a monthly insurance payment can equal or be higher than the monthly mortgage payments. In Texas annual state property taxes are almost three times that of Nevada, though the average sales price for homes is a bit less expensive. That leaves the Las Vegas real estate market as the clear cut winner to date.

One of the reason the existing Sun City developments have been so popular is the amenity rich activities being offered: resort style pool and spa areas, business centers, workout facililties, restaurants, wellness centers, golf courses and social clubs. But population demographics are rapidly shifting, and now across the country many Sun City homeowners are ready to forego that single family retirement home in favor of a low maintenance lock-and-go condominium with nearby/on site medical facilities.

As of yet, there are no age restricted high rise condos in the country's most popular retirement area, Las Vegas, though there is one mid rise in the popular Sun City Anthem development in Henderson. So where are the adult age restricted Las Vegas high rise condos?

One progressive Las Vegas developer has been listening to pent up demand, and is currently working on plans for a multiple tower project that would incorporate the city's first adult high rise condo towers. This upscale community would be located in the center of town within easy commute to the Las Vegas Strip and adjacent to a major hospital. Plans call for almost every unit to have a fabulous Strip view and all would come standard with every luxury upgrade imaginable, including granite, flat screen TVs and state of the art communications equipment. In addition to the usual amenities like fitness centers and spas, this multi use development would also include on site dry cleaners, restaurants, postal services, boutique grocery shopping, coffee shop, cleaning services, plus a few new tend setting twists that should prove extremely popular. Innovative building design should keep costs considerably below existing high rise projects so that the majority of current Sun City occupants from across the country would find them affordable.

Flloor plans, exact pricing and more details on this adult high rise project will not be available until sometime in early 2009 with estimated construction to be completed on the first towers in 2010. If you would like to be placed on our priority list to receive further information as it becomes available, please register online at: Las Vegas Adult High Rise Condos Or call us at 702-985-7654. The Tonnesen Team of Prudential Americana Group Realtors is proud to announce that the developer has chosen Prudential Americana to market the sales of this unique property. Stay tuned to this blog for more info!