Meridian condos is a short 10 minute walk from the intersection of Las Vegas Boulevard and Flamingo Road which means that Bellagio Fountains, City Center or Caesar’s Palace are within a stone’s throw from the Meridian. Flamingo and the Strip is the most expensive location in Las Vegas and yet these condos are now priced dirt cheap.
The vast majority of condos for sale in Meridian are either short sale or foreclosures, of the 125 condominiums 66 are bank owned. The reason that these condos listings are either foreclosures or short sales is the money that the original buyers paid for these condos in 2006.
For example, there are 4- 2 bedroom, two bath, 1294 square foot bank owned condo listings that are priced $178,000-$137,000. These condo units were purchased for $783,900-$615,000 in late 2005 and 2006. The condo unit that is priced at $159,900 had sold previously for $783,900 in 10/01/06. This is an 80% price reduction over the last 16 months and proof positive of rampant greed when these condominiums were originally purchased. Rental comps show one of these units had been leased last month for $3100 and was fully furnished.
The next smaller unit which is a 2 bedroom, two bath, 1062 square foot rents for $2100 for 1-6 month lease. The lease rates come down for longer leases.
Meridian has a long history of legal troubles. Those who originally purchased the units are now suing the builder for unfulfilled promises and some are not paying the home owner association fees (HOA fees) or condo fees as it is known elsewhere.
And then there is the matter of the Meridian Manager’s renting the units for nightly rentals that made a lot of noise last summer and was stopped by a cease and desist order from the Nevada Attorney General. It was claimed that of the 678 condos in the complex, 450 decided to participate in the hotel concept that requires them to buy new furniture for their units that ranged anywhere from $15,000 to $35,000. The room rates started at $79 a night and went as high as $499 a night for two bedrooms. Owners received 80 percent of the revenue. However Meridian was not zoned for hotel and the State of Nevada never received sales tax from the management and that made our Attorney General unhappy.
Meridian can legally rent their condos on a monthly basis and that is where it is most effective. Long term visitors can rent a furnished 1-3 bedroom unit in Meridian and reach the heart of the Las Vegas Strip in the matter of minutes and the owner makes a decent return on their investment. The owner of a Meriden condominium who paid $150,000 for his condo can get 8%-10% cash on cash return on the money and have a condo by the Las Vegas Strip.
More on Meridian condos in the next blog
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