Before I discuss Allure, I like to start by discussing land prices in Allure’s neighborhood. Allure’s builder purchased his land for about 3.5 Million dollars per acre. The land across on Sahara was purchased by MGM Mirage. The 25.4 acre parcel that has commercial tourist zoning (h1) was bought for about 18 million dollars per acre in May 2007. On the NE side of Sahara and the Strip sits a two acre parcel at the site of the former Holy Cow Casino, which was once going to be the Ivana Trump condo, sold for 23.5 Million dollars per acre in October 2007.
As you can see, once Allure and like projects sell out whoever is going to build the next high-rise luxury condo in Allure’s neighborhood is going to look at much higher land prices than what Allure’s builder paid, even now.
From 2004 to late 2006 every one and their auntie who had a few million dollars, bought a parcel of land with proper high density zoning such as MUD1, H1 or R5, went through the entitlement process, got an architect rendering, opened a sales office and became a high-rise builder. I wrote at the time that only 10% to 15% will ever be constructed. I was too optimistic and the final number is much lower than 10%. At the end, only experienced high-rise builders succeeded.
Allure’s builder is a high-rise builder with extensive background, I remember his interview with the Review Journal at the height of Ivana’s Tower (RIP) hype, when he said that he doesn’t have Trump for his last name and he is not flashy, but he will finish his project and correct, he was.
I want to start a series of blogs about Las Vegas high-rise and mid-rise condominium because some great bargains are starting to hit the market and better opportunities are still to come. The other reason is that the current real estate market provides for an unprecedented opportunity for real estate investment firms to buy into these magnificent high-rise condos in bulk and at unprecedented prices.
More on Allure in the next post.