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IN BUSINESS REAL ESTATE VACANT LAND MARKET HAS LONG SLOG TOWARD RECOVERY By Buck Wargo staff writer The demand for vacant land in Las Vegas remains low and prices declined in the second quarter, a report released by Applied Analysis says. The firm reported the price per acre paid for the 477 acres acquired during the second quarter was $235,071. That's a 25 percent increase from the second quarter of 2010, when the price was $187,779, and 14 percent higher than the first quarter of 2011, when it was $206,275 per acre. But Applied Analysis Principal Brian Gordon said the numbers are misleading because the pricing was bolstered by a 40-acre property that transferred ownership through a trustee sale for $51.8 million, or $1.3 million per acre. Excluding such distressed sales, the vacant land price was $138,100 an acre. That's an 11.9 percent decline from the first quarter and 10.7 percent from the second quarter of 2010. The 477 acres of land transactions in the second quarter is slightly above the 442 acres in the first quarter but below the 745 acres in the second quarter of 2010. Fifty-four percent of the land transferred in the second quarter was trustee sales in a reflection of the continued distressed nature of the land market, Gordon said. Traditional sales accounted for 39 percent of the transfers, while deeds in lieu of foreclosure and quitclaim deeds accounted for 6 percent. Continued problems loom for the land market, Gordon said. Residential housing inventory outpaces demand because foreclosures remain high and population growth remains modest, he said. Commercial and industrial properties continue to report vacancies near all-time highs, and the resort industry struggles with its capacity issues, he said. COURTS SPECTER OF NEW CHARGES RAISED IN DEVELOPER'S CASE By Steve Green senior staff writer The possibility of another criminal charge against Las Vegas developer Jean Marc El Jwaidi has been raised in his bankruptcy case. In the two-year-old case filled with unusual twists, this possibility was revealed this month by El Jwaidi's bankruptcy attorney. In a filing arguing El Jwaidi has the right to object to creditor claims in his case, his attorney wrote: "The debtor cares very much about the amount of claims ultimately allowed as it affects the amount he may be required to pay if his (bankruptcy) discharge is not granted and it affects the distribution to his creditors and the amount of restitution, if any, that he may be required to pay in any subsequently- filed criminal matter." Attorney Matthew Johnson, who filed the brief, said he was unaware of any pending criminal actions against the local developer. "I included it in my argument as a precaution,'' Johnson said. The context of the filing is that while El Jwaidi has been trying to reduce the dollar amount of claims in his case, so far totaling $23.2 million, his attorneys say "the majority of these claims have been grossly exaggerated." These claims compare to El Jwaidi's declared assets totaling $6.273 million. And several creditors' attorneys say debtors in Chapter 7 liquidation cases like El Jwaidi have no standing to file such objections. Bankruptcy Judge Linda Riegel has not yet ruled on this dispute. El Jwaidi filed for bankruptcy in 2009, the same year he was arrested by securities regulators on charges of bilking elderly investors in a failed real estate development project. Those charges were resolved when a benefactor for El Jwaidi stepped up to pay $338,306 in restitution to the alleged victims. Legal Marketing Association Presents Corporate Counsel Panel: Key Insights for Attorneys and Marketing Professionals Discover and capture methods corporate counsel strategically implement to resolve comprehensive challenges! Date Friday, September 16, 2011 11:30 AM -1:00 PM Location Lawryʼs The Prime Rib 4043 Howard Hughes Pkwy. Moderator Bruce Spotleson Vegas Inc. Las Vegas' No.1 Business Resource Has Never Been More Important. P R E M I E R E I S S U E 4 APRIL 2011 2011 minding your business min d in g y our b usines s™ THE TOURIST THE RETURN OF They're back. Now what? J. PATRICK COOLICAN INVESTIGATES EXCLUSIVE THE INTERVIEW 5 20110404_VI01_F.indd 1 UNLV PRESIDENT: READY TO RUMBLE BIG STORY DISASTER SCENARIOS, REALLY SCARY TRUTHS IN BUSINESS Construction Jobs On The Rise Look Who's Flying To Mexico Now Is Retail Actually Heating Up Again? * DesertXPress: Derailment, Vegas Style p.39 + Where's the heart of Las Vegas? "There's a new consciousness that has seeped into our brains." 3/31/11 3:48:22 PM Get your one-year subscription to and we'll include our best leads via email. All for only $50 a year. Register NOW at LMAEVENT.COM or call Navé for more information at 702.944.2464 16 For additional information call 800.254.2610 or email subscriptions@gmgvegas.com VEGASINC.COM/SUBSCRIBE | 12 SEPTEMBER 2011 |