VEGAS INC Magazine - Latest Las Vegas business news, features and commentaries about gaming, tourism, real estate and more
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In business real estate quarterly real estate quarterly apartment complex's new owners want to bring back rat pack vibe REPORT: land prices on dangerous rise By Eli Segall staff writer Some real estate investors want to bring back the style and charm of an aging Las Vegas apartment complex where members of the famed Rat Pack once lived. If all goes as planned, residents will soon be sipping cocktails poolside, walking their dogs near mosaic art and charging their electric cars before heading out for a night on the town. Executives at Deco Communities, the new owner of Rainwalk Apartments, have their work cut out for them. The 104-unit complex near the Boulevard Mall needs physical and aesthetic upgrades and is surrounded by run-down apartment buildings. Deco bought the 3-acre property on Dumont Boulevard in November for $2.9 million. The Scottsdale, Ariz.-based company said March 26 it will rename the complex Cabana on Dumont and immediately start a $2 million overhaul. More than 60 architects, master landscapers, construction workers and designers will work "around the clock" the next several months, the company said. Executives say the "first round of hip Las Vegas urbanites" can move in by sum- By Eli Segall staff writer mer. The complex, built in 1973, is slated to have mosaic art installations, a hotel-style leasing center, refurbished laundry facilities, a new bike storage area, pet walks, electric car charging stations, WiFi club rooms and new pool areas with colorful seating. The units already have stone fireplaces, wet bars, swag lighting and entertaining areas. According to Deco, the property was a "highly desirable" place to live for decades for celebrities and entertainers, including the Rat Pack — Frank Sinatra, Dean Martin, Sammy Davis Jr., Peter Lawford and Joey Bishop — whose members were occasional residents at the complex, then known as The Villas. Deco rehabilitates aging apartment complexes near retail, public transit and recreation and then markets them to young, urban professionals. The company bought Rainwalk from mortgage finance giant Fannie Mae, which had acquired the complex through foreclosure in August 2010. As recently as January 2005, at the height of the building boom, Rainwalk sold for $15.9 million — more than five times what Deco paid. Las Vegas land prices are rising at an unsustainable and "downright scary" pace as the valley's home building market continues to rebound, a new report says. Residential developers bought land in the Las Vegas Valley in November and December for about $175,000 to $185,000 per acre. Prices climbed to more than $200,000 per acre in January and to the $250,000 to $275,000 range in February for some parcels, according to Home Builders Research. In March, a few parcels were in escrow for more than $350,000 per acre. Land prices are expected to level off around mid-year and hold steady for a while, as the economy still is too weak "to sustain this level of increases," research firm President Dennis Smith said in the report. "Aside from being downright scary how quickly the raw land values rose, it is good to hear that values in Las Vegas are returning," he wrote. Land prices are soaring as builders sell more houses and ramp up construction plans in the valley. There were 510 new home sales in the region in February, up 65 percent from 310 sales in February 2012. The median sales price last month was $234,467, up 21 percent from $193,900 a year earlier, Smith reported. Las Vegas, NV // Mandalay Bay May 6-10, 2013 // Expo: May 7-9 Building IT Innovation 515 300 Exhibitors, 120 Sessions, BYOD, Mobility, Networking and more! 95 215 EXPERIENCE IT INNOVATION TOGETHER. Buy One All Access Pass and Get a Free All Access Pass for a Colleague. Register at interop.com with Priority Code LVBOGO. | 15 APRIL 2013 20130415_VI14_F.indd 15 | 15 4/11/13 2:57:44 PM