Las Vegas Sun NewsVeer Towers virtually sold out with bulk sale of 427 units
Facebook
Fark
Digg
Reddit
Stumble
Friday
21 December 2012
10:44 a.m.
Updated
21 Dec. 2012 1:15 p.m.
A New York investment firm has paid $119 million cash for more than 60 percent of the condos at CityCenter’s Veer Towers.
The bulk sale of 427 units to Ladder Capital, recorded Thursday in Clark County, means almost all the available inventory has been snapped up.
The 37-story luxury high rises on the Strip are 98 percent sold, developers said today. The 11 remaining units are all penthouses.
Ladder paid around $300 per square foot, while asking prices for individual buyers have started in the $500 range, said Tony Dennis, executive vice president of CityCenter Residential. About 320 of the units sold to Ladder are already being rented, he said.
Dennis said the deal was in the works for more than a year and brings "new energy and new money" into the market. The deal gives a boost to Las Vegas' condo sector and, as Dennis sees it, shows that "the future is going to better than it is today."
Ladder CEO Brian Harris did not return a call seeking comment.
Veer Towers, which lean at a 5 degree angle, have 335 units each. The homes range from about 500 to 3,300 square feet. Amenities include valet parking, exercise facilities, steam rooms and saunas.
The 67-acre CityCenter complex is a joint venture between MGM Resorts International and a subsidiary of Dubai World, a Dubai-owned holding company.
This was at least the second bulk sale of residential units on or near the Strip this year.
Hilton Worldwide’s timeshare division bought roughly 300 condo units at Donald Trump’s golden high-rise, Trump International Hotel Las Vegas.
Hilton plans to use the units as timeshare accommodations starting next spring.
Share
Join the Discussion:
Previous Discussion:
Discussion 1 comments
Only trusted comments are displayed on this page. Untrusted comments have expired from this story.
Most Popular
- New Las Vegas Strip arena to cost $350 million
- Company preparing to sell tickets for Las Vegas party train
- Genting planning art exhibits, dragon dancers — even before Resorts World opens
- Move over, NY-NY Roller Coaster: The Polercoaster is proposed for the Strip
- Metro officer is relieved of duty after pleading guilty in drug case
Some quick math suggests that the buyer forked over about $278,000 per unit, on average.
I'm wondering if this is going to be the same outcome that the Trump Tower went thru...next thing they are rented out thru time shares...eeesh, good luck being a homeowner there. I wouldn't.
278K per sounds cheap. The problem with some of those units is they are "filthy" with internal columns, the result of the leaning aspect of the towers. Also the floor plans on the smaller units had terrible furniture layouts. Everything looks nice until you can't figure out where to put a flat screen and actually watch it. Sounds like MGM can now layoff their salespeople on that one.
That's about $268,000 per unit.
Not an unreasonable price. Are they going to be managed properties like the Cosmo?
So, by selling 60 percent of the units to a single investor, that makes Veer 98 percent sold. In other words, before this cut-rate bulk deal, only 38 percent had been sold. In other words, the place stiffed in the retail market.
So, how's that Manhattanization of Las Vegas working out for you, real estate shills?
Also, anytime I get the urge to look into a "bargain" rental at Veer or one of the other condo ghost buildings on or near the Strip, I realize I would be living in a dead building most of the week. Then on the weekends, it would be filled with frat boys partying on Daddy's dime, screaming "Vegas, baby!" in the hallways all night and probably vomiting in the elevators.
I think I'll pass.
Incidentally, no one should be foolish enough to think the Harmon was the only CityCenter building with potentially disastrous workmanship or bad engineering, in my opinion. I wouldn't want to be in Veer or any other CC buildings if we ever get an earthquake of any significance in this city. I'm just sayin'.
Chunky asks:
Why is Mr. Dennis still with the company considering residential sales have FAILED at City Center?
Rejoice! The company just blew out 427 units of dead inventory at a fraction of the cost to build and maintain, much less the original asking prices.
That's what Chunky thinks!
After this monumental disaster--they have finally, years after everyone else, realized they can't sell this overpriced crap--not enough suckers left to sell to. So now they dump the condos at a loss and try to spin it in a positive fashion....don't forget they only sold 2 units at the "high end" mandarin tower---1 million plus each---who will buy these in bulk???? in previous articles they admitted they had only sold 163 (i think) of the vdara units, thats about 80% empty being rented out.
No way to spin all this as good---this was easily the biggest financial blunder in gaming history---maybe in all real estate history...all for a property that was not needed and in a market they already had 10 properties already that they would be competing against themselves with....BRILLIANT! now your saddled with 14 billion in debt and 276 million in interest payments every three months!!!
Well, I'm sure CEO Murren will still get his annual multi-million dollar bonus check.