Vertical Market Update by Ike Moore

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VEGAS

LUXURYSKYRISE

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VegasLuxurySkyRise.com


Mid-Year Review 2012


As we look back at the first six months of 2012 and assess how the market has performed relative to the same time last year we find that sales volume is down slightly, but pricing in many of the towers has gone up. Much of this can be attributed to a very active high rise market over the past two years which has worked through much of the distressed inventory and now supply is shoring up and with the continued demand we are seeing some upward pricing pressure and value building. As we continue to move past the real estate bubble, there is now a sense of optimism and we are seeing more and more vacation- and retirement-home buyers, looking not only to capitalize on the value opportunities, but for luxury properties to spend time enjoying the entertainment capital of the world. While the number of bank-owned properties has gone down, short sales continue to be a part of the collective inventory and are likely to continue for the remainder of the year. International investments are still a significant portion of sales capitalizing on historically low pricing and leveraging currency positions. The data on the following pages will provide insight into select highrise properties in the Las Vegas valley. Please call us if you require any additional information on a specific property.

Isaac Moore 702.306.5866 Ike@SynergySIR.com

VegasLuxurySkyRise.com


16

6

Fash Mirage / TI Caesars Palace

Gold Coast Rio

Palms

5

P

Bellagio

4

2

3

Cosmopolitan

Bally’s Paris

City Center

Monti Carlo NewYork NewYork

Planet Hollywood

1

MGM Grand

Excalibur Tropicana Luxor

D

LV

eg

sV

La

B as

Mandalay Bay

McCarran International Airport


14

Downtown

12

11

8

15

13

Stratosphere

Sahara

Circus Circus

9

Wynn / Encore

Fontainebleau Riviera

Hilton

hion Show Mall

Las Vegas Country Club

10

Las Vegas Convention Center

Venetian Palazzo Sands Convention Center

Wynn Golf Course

7

Harrahs Imperial Palace Flamingo Bill’s

UNLV Thomas & Mack Center

1. 2. 3. 4.

MGM Signature Mandarin Oriental Veer Towers Panorama Towers

5. 6. 7. 8.

The Martin Palms Place Park Towers Trump

9. 10. 11. 12.

Metropolis Regency Towers Sky Allure

13. 14. 15. 16.

Turnberry Place Newport Lofts Soho Lofts One Queensridge


One Queens ONE QUEENSRIDGE PLACE Dedicated to the most discriminating owners, One Queensridge Place serves as one of the very finest luxury residences in Las Vegas. There is soon to be a new opportunity with a release of developer inventory, which will provide some great units at great prices. Contact us for more details.


sridge Place

# of Average Sales Price % REO % Short Sales Transactions ($) 2011MidYear 4 1,008,750 25% 75% 2012MidYear 7 1,132,571 14% 57% Δ 3 123,821

Sales Price (Max) Sales Price (Min) Sales $/SF (Max) Sales $/SF (Min) 1,700,000 2,700,000 1,000,000

550,000 684,000 134,000

355 543 188

242 254 12

VegasLuxurySkyRise.com 2012 - TIME Nevada, LLC


CityCenter MANDARIN ORIENTAL As the most prestigious residential address on the Las Vegas Strip, Mandarin Oriental sets the standard for luxury highrise living.

There are still a few

opportunities with the initial developer inventory, but very few resales have come to market.

# of Average Sales Price % REO % Short Sales Transactions ($) 2011MidYear 1 3,034,000 0% 0% 2012MidYear 2 2,399,500 0% 0% Δ 1 (634,500)

Sales Price (Max) Sales Price (Min) Sales $/SF (Max) Sales $/SF (Min) 3,034,000 2,874,000 (160,000)

3,034,000 1,925,000 (1,109,000)

1,012 959 (53)

1,012 919 (93)

VEER TOWERS The iconic architecture and contemporary design of the Veer towers set these towers apart on the Las Vegas Strip. While

there continues to be little activity in resales there is still an active market with new inventory.

# of Average Sales Price % REO % Short Sales Transactions ($) 2011MidYear 2 1,068,000 0% 0% 2012MidYear 2 396,550 0% 0% Δ (671,450)

Sales Price (Max) Sales Price (Min) Sales $/SF (Max) Sales $/SF (Min) 1,180,000 407,000 (773,000)

956,000 386,100 (569,900)

748 488 (260)

689 461 (228)


PALMS PLACE Hip and modern is definitely the theme of Palms Place and it is getting more attention from buyers this year over last. The average sales price for Palms Place has gone up over the same time last year and the volume of transactions is up over 60%.

# of Average Sales Price % REO % Short Sales Transactions ($) 2011MidYear 16 169,906 6% 63% 2012MidYear 26 175,550 8% 19% Δ 10 5,644

Sales Price (Max) Sales Price (Min) Sales $/SF (Max) Sales $/SF (Min) 190,000 380,000 190,000

140,000 113,000 (27,000)

309 341 32

228 184 (44)

TRUMP TOWER This classic and luxuriously appointed condotel is now seeing more attention, primarily from international buyers. The number of sales has more than doubled from the same time last year and the pricing has notched up as well. There are still great options on developer inventory for those who are still looking for luxury at an opportunistic price.

# of Average Sales Price % REO % Short Sales Transactions ($) 2011MidYear 12 229,750 0% 58% 2012MidYear 26 256,067 0% 35% Δ 14 26,317

Sales Price (Max) Sales Price (Min) Sales $/SF (Max) Sales $/SF (Min) 382,000 480,000 98,000

145,000 155,000 10,000

468 563 95

272 271 (1)


R E S I D E N C E S PARK TOWERS These two towers continue to serve as one of the most distinctive and exclusive highrise addresses, home to many of the most influential Las Vegas residents. This property doesn’t traditionally have much in the way of turnover, but we did see two discounted sales earlier in the year.

# of Average Sales Price % REO % Short Sales Transactions ($) 2011MidYear 3 2,486,667 0% 0% 2012MidYear 3 1,761,667 0% 0% Δ (725,000)

Sales Price (Max) Sales Price (Min) Sales $/SF (Max) Sales $/SF (Min) 3,750,000 2,750,000 (1,000,000)

1,710,000 785,000 (925,000)

765 561 (204)

389 269 (120)

TURNBERRY PLACE The four towers of this prestigious compound continue to be one of the premier residences of the Las Vegas Strip. While sales volume was down over the same time last year of over 30%, the pricing has been stronger.

# of Average Sales Price % REO % Short Sales Transactions ($) 2011MidYear 37 400,215 35% 30% 2012MidYear 24 497,556 17% 25% Δ (13) 97,341

Sales Price (Max) Sales Price (Min) Sales $/SF (Max) Sales $/SF (Min) 1,170,000 1,526,067 356,067

160,000 175,000 15,000

321 381 60

122 96 (26)


R E S I D E N C E S ALLURE After closing out the last of the developer inventory earlier this year, the building has remained steady in resales, but the average price is up over 40% from the same time last year. This is still one of the most affordable highrise opportunities on the Strip and people are starting to take notice.

# of Average Sales Price % REO % Short Sales Transactions ($) 2011MidYear 25 157,848 48% 32% 2012MidYear 27 222,159 26% 11% Δ 2 64,311

Sales Price (Max) Sales Price (Min) Sales $/SF (Max) Sales $/SF (Min) 328,900 700,000 371,100

73,500 89,000 15,500

180 278 98

74 89 15

SKY LAS VEGAS With some promising news of development for the old Sahara site, there has been an increased interest leading to over 25% increase in sales volume and average pricing edging up slightly.

# of Average Sales Price % REO % Short Sales Transactions ($) 2011MidYear 26 209,052 35% 58% 2012MidYear 33 211,739 39% 30% Δ 7 2,687

Sales Price (Max) Sales Price (Min) Sales $/SF (Max) Sales $/SF (Min) 298,000 485,000 187,000

136,500 119,000 (17,500)

205 256 51

133 136 3


R E S I D E N C E S PANORAMA The two towers overlooking the world-class architecture of CityCenter saw a significant decrease in sales relative to the same time last year. This is primarily due the high demand of investors and second homebuyers over the past two years. The pricing has increased slightly and is likely to continue as the majority of the building gets turned over from distressed sales.

# of Average Sales Price % REO % Short Sales Transactions ($) 2011MidYear 62 231,069 42% 37% 2012MidYear 26 271,353 27% 38% Δ (36) 40,284

Sales Price (Max) Sales Price (Min) Sales $/SF (Max) Sales $/SF (Min) 655,000 700,000 45,000

100,000 110,000 10,000

244 271 27

97 129 32

THE MARTIN The sister project of Panorama Towers has some excellent options in both resale and in developer inventory. As they have worked out the distressed sales, the project was recently re-launched and has a number of incentive opportunities for second home buyers and investors alike.

# of Average Sales Price % REO % Short Sales Transactions ($) 2011MidYear 15 420,160 87% 0% 2012MidYear 34 330,147 0% 0% Δ 19 (90,013)

Sales Price (Max) Sales Price (Min) Sales $/SF (Max) Sales $/SF (Min) 771,900 1,040,000 268,100

251,000 217,500 (33,500)

393 355 (38)

226 196 (30)


R E S I D E N C E S METROPOLIS Overlooking the prestigious Wynn golf course, these lofts have not had much activity as most owners have been holding on to them over the past year. With only one sale, it is showing pricing increases over what we saw last year.

# of Average Sales Price % REO % Short Sales Transactions ($) 2011MidYear 5 281,620 20% 80% 2012MidYear 1 375,000 0% 100% Δ (4) 93,380

Sales Price (Max) Sales Price (Min) Sales $/SF (Max) Sales $/SF (Min) 350,000 375,000 25,000

245,000 375,000 130,000

137 119 (18)

98 119 21

REGENCY TOWERS These long-standing Vegas residential towers, located within the Las Vegas Country Club, has seen a 50% increase in sales over the same time last year. This was due in part to some significantly discounted bank-owned sales.

# of Average Sales Price % REO % Short Sales Transactions ($) 2011MidYear 7 181,571 29% 0% 2012MidYear 14 156,207 36% 7% Δ 7 (25,364)

Sales Price (Max) Sales Price (Min) Sales $/SF (Max) Sales $/SF (Min) 425,000 425,000 -

52,000 59,900 7,900

122 192 70

67 38 (29)


Downtown NEWPORT LOFTS These contemporary lofts are the highlight of the downtown residential scene. With Zappos.com moving their headquarters to downtown Las Vegas, the demand for these units is strong and will continue as the redevelopment efforts continue.

# of Average Sales Price % REO % Short Sales Transactions ($) 2011MidYear 12 172,792 25% 17% 2012MidYear 7 165,286 0% 14% Δ (5) (7,506)

# of Average Sales Price % REO % Short Sales Transactions ($) 2011MidYear 9 160,767 22% 22% 2012MidYear 5 251,000 0% 100% Δ (4) 90,233

Sales Price (Max) Sales Price (Min) Sales $/SF (Max) Sales $/SF (Min) 379,500 330,000 (49,500)

100,000 110,000 10,000

139 200 61

97 104 7

Sales Price (Max) Sales Price (Min) Sales $/SF (Max) Sales $/SF (Min) 185,000 625,000 440,000

125,000 140,000 15,000

136 135 (1)

89 88 (1)


Condotels

This segment of the market has shown resurgence in the last two years as the prices have dropped dramatically and have provided an excellent opportunity for people looking for a luxury vacation property while getting a financial offset through various rental programs.

MGM SIGNATURE MGM Signature continues to be the predominant property of interest in the condotel market. With sales volume down more than 25% from the same time last year, it is primarily due to the lack of inventory rather than demand for the units. There are still opportunities to make key purchases in the three towers, but with so much interest at these prices over the past two years we are definitely seeing the tide turn and upward pressure on pricing. # of Average Sales Price Transactions ($)

REO

Short Sales

Sales Price (Max) Sales Price (Min) Sales $/SF (Max) Sales $/SF (Min)

2011MidYear

123

175,293

13%

46%

461,000

112,500

527

158

2012MidYear Δ

89 (34)

203,613 28,320

9%

18%

545,000 84,000

95,159 (17,341)

808 281

183 25


Isaac Moore

702.306.5866

• VegasLuxurySkyRise.com

®,™ and SM are licensed trademarks to Sotheby’s International Realty Affiliates, Inc. An Equal Opportunity Company. Equal Housing Opportunity. Each Office Is Independently Owned And Operated, Except Offices Owned And Operated By NRT Incorporated. If your property is listed with a real estate broker, please disregard. It is not our intention to solicit the offerings of other real estate brokers. We are happy to work with them and cooperate fully.


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