Historical multifamily construction deliveries for the Vegas Valley average 7,000- to 8,000 units per year, with absorption tracking pretty closely. In 2005, however, new supply for 2005 was negative--by between 1,200 units and 4,000 units depending on who is crunching the numbers--in large part due to condo conversions outpacing new deliveries. Demand is expected to continue to outpace supply in 2006 and 2007 before stabilizing in 2008 or 2009, Allen says.

"Beyond that, it's too far out to tell what's in the pipeline," Allen says. "A lot will depend on land costs and parking requirements and upzoning."

Alexan Black Mountain is penciling out despite the land cost of $850,000 per acre in part because zoning allows the project to be three stories instead of two and because the parking requirement was relaxed just enough that the project could be built without structured parking, which adds upwards of $30,000 to the cost of each unit, Allen says.

The future also looks good for the area around the development. Within walking distance of the site is a proposed 600-acre campus for Nevada State College. Also within walking distance is a planned regional light rail line that is expected to run on a Union Pacific Railroad spur that runs between Boulder City and McCarran International Airport.

There are several developable properties in the immediate vicinity of TCR's project. Across Conestoga from TCR's project, Standard Pacific Homes is developing an attached for-sale housing development. At Conestoga and Nevada State Way, Picerne Real Estate Group, which is responsible for the majority of the multifamily product in the pipeline, has another project in the works, though delivery is further out than TCR's project. A 25-acre mixed-use development also is being planned on a nearby parcel, Allen says.

Allen left the family-owned, Rhode-Island-based Picerne company 14 months ago to help TCR enter the Vegas market. In part, he says he made the move in order to have a stake in the developments he was directing, an incentive not offered by Picerne. In addition to Alexan Black Mountain, Allen says TCR has an additional 1,200 units planned in multiple projects around the Valley.