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High-Rise Condo Project Shuts Down

LAS VEGAS-On the heels of a lawsuit filed by buyers wanting their deposits back, the sales gallery is closed, sales agents are laid off and deposits are being returned

By Brian K. Miller | Updated on March 05, 2008

LAS VEGAS-Pinnacle Las Vegas, the distinctive high-rise condo project planned for a site across from the Orleans hotel, casino and arena, has shut down operations. Norm Fornella, chief executive of Dick Pacific Construction Co., a partner in the project and also the general contractor, confirmed for GlobeSt.com that the sales center has been closed, that the sales staff has been let go and that Nevada Title had been instructed to release buyers’ deposits along with interest in accordance to their contract.

“The financial markets just turned on us,” Fornella says. “The [construction lender's] requirements for presales increased dramatically and condo sales weren’t happening.”Pinnacle Las Vegas, estimated at $740 million, was first announced in 2005. The project was originally scheduled to be complete in June 2009. Since that time construction and completion dates had been pushed back twice. As of earlier this year, the 12-acre site on Tropicana Avenue had been cleared but no construction had taken place. The last time line announced by the developer called for construction to begin in mid-2008 and be complete in mid-2010.

Fornella says the shutdown was not related to a lawsuit filed last month by disgruntled buyers who wanted their deposits back following multiple development delays. On behalf of Florida-based Green Cable LLC and 250 other buyers who each put down a 10% deposit for a unit in the project under contracts with addendums that included certain performance targets for each side, local attorney Samuel A. Schwartz filed a would-be class-action complaint in the US District Court of Nevada. The complaint claims breach of contract and seeks upward of $5 million in returned deposits, damages and attorney fees.

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