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Author: Beth Bresnahan
Publishing date: 04/04/06

RISMEDIA, April 5, 2006-Las Vegas condo developers have no problem selling their projects - building them seems to be another story.

In the past few days the ambitious Las Ramblas development has been canceled along with a popular suburban high rise project, The Curve, and a downtown high rise, Sandhurst. In these instances sales volume was not the issue - materials and a massive local labor shortage were cited as the main reason for the cancellations.

Just weeks ago the Hard Rock Hotel announced that their Las Vegas condo hotel sales have temporarily been suspended pending the possible sale of the entire project to a new owner. Buyers were given the option of receiving refunds or staying in escrow to see if the project will be continued. Several condo buyers have been told by unidentified sources that the new project purchasers were hoping that most of the previous buyers would drop out, allowing them to continue the project and resell the units at prices up to 30% more than originally contracted for.

Prior to this several other projects that were more than 75% sold out were also cancelled including Krystal Sands, Liberty Towers, Icon and Aqua Blue. All had the same things in common - plenty of sales but rising construction costs and a severe labor shortage made building impossible.

With the uncertainty of construction, it is hard to identify which projects are "real." According to Todd Grotstein, Director of Prudential Americana's High Rise Division, there are five vital indicators to help determine a project's viability.

Q: Does the project have a building permit?
Q: Has the project locked in construction pricing and the construction company?
Q: Is the project paying commissions to cooperating brokers?
Q: Is site work or construction in progress?
Q: How strong is the developer's experience & reputation?

Buyers in existing developments that already meet these criteria can expect to see huge gains in the next few months as their competition dwindles away. The Tonnesen Team High Rise Division at Prudential Americana has compiled a current list of major projects that meet most of the standards above. For details and to register for these and other projects around the Las Vegas Valley contact a certified Las Vegas high rise expert at 702-985-7654 or visit www.GreatLasVegasCondos.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

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