The developer is San Diego-based CityMark Development, which was selected by the city in 2003 following a nationwide RFP process. The company tied up the 2.4-acre development site the following year for $5.2 million, its appraised value at the time, according to an independent appraisal commissioned by the city. CityMark principal Russ Haley tells GlobeSt.com the construction cost is about $100 million and has been locked in with a guaranteed maximum price agreement with the contractor, Turner Construction.
CityMark Principal Russ Haley tells GlobeSt.com that the company closed on its construction financing and the development site about one month ago. Prior to that, it had been exhausting the equity in the project. Currently, rebar is sticking up out of the ground, the foundation has been poured and the first deck should be completed in a couple of weeks, he says.
Approximately 60% of all residential units have been sold, Haley says. Excluding the penthouses, the unit sizes range from 600 sf to 2,500 sf. The sale prices for the units range from the high $200,000s to the mid $700,000s. The penthouses will sell for between $1 million and $1.5 million. Haley says he expects to be sold out prior to completion. The expected gross sell-out is $175 million, he says.
The buyers are mostly locals, says Haley, in part because his price point is below the ultra-luxury product that's being built. "The local market represents two-thirds of sales," he says. Much of the remainder is being sold to the usual suspects--folks from Southern California.
The retail space includes 10,000 sf of what Haley describes as traditional retail space. The remainder is broken into 11 spaces connected to townhouse-style residential units directly above each space; Haley describes the live-work product as shopkeeper units. The spaces of the buyers to date will house an art gallery, dentist office, optometrist office, and jewelry store.
There are several other condominium projects underway in Downtown Las Vegas. In early June, GlobeSt.com reported that Cherry Development began closing sales for homes in its 120-unit condominium project Soho Lofts , the first residential high-rise development in Downtown Las Vegas. The project essentially sold out in two months when it came to market back in 2004. Located several blocks north of the Fremont Street Experience and several blocks south of the main part of the Strip, the project's buyers are running 60% local.
In May, the developer of Streamline Towerin Downtown Las Vegas cleared its pre-sale hurdle and in early May closed on its construction loan. Vertical construction of the 21-story, 275-unit project began earlier this month. The developer is Barclays North of Everett, WA. The senior lender for the $150-million project is Corus Bank.
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