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Category Archive : Investing

Eviction Moratorium

Nearly 4,000 Eviction Cases Opened in Las Vegas Since End of State Eviction Moratorium

LAS VEGAS, NV – Since Nevada Governor Steve Sisolak lifted the state eviction moratorium on October 15 – originally put into place in March due to the ongoing COVID-19 pandemic – nearly 4,000 eviction cases have been opened in Las Vegas Justice Court, according to reports.

Despite the state eviction moratorium ending October 15, the earliest landlords could start eviction proceedings against tenants for non-payment of rent due to pandemic-related financial reasons was October 29 due to official court timelines.

Since that date, October 29, 3,981 cases have been opened, although the overall number of evictions could actually be higher due to the fact that cases are often filed with the court after the initial serving of the eviction notice by the landlord, not before. Once an eviction notice has been served, a tenant has seven business days to make good on back rent owed or vacate the property; if they do not, then the landlord or property manager can open a case in court and start formal eviction proceedings.

Governor Sisolak originally put the eviction moratorium in place after the pandemic wreaked havoc with the economy, costing thousands their jobs and creating wide-scale financial hardship. However, after several extensions of the moratorium – and complaints from landlords who were suffering financially themselves – Sisolak finally lifted the moratorium approximately one month ago. Despite the moratorium, landlords were still able to evict tenants for some safety-related issues.

A Centers for Disease Control and Prevention eviction order remains in place throughout the end of the year, although to be eligible tenants were required to opt-in to it; if a tenant has not done so, the federal order would not apply to them, and eviction proceedings would be allowed to begin if they did not make good on back rent or arrived at a repayment plan with their landlord.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of HendersonLas Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

Real Estate Prices

Single-Family Home Prices in Las Vegas Set Record for Fifth Month in a Row, Despite Pandemic

LAS VEGAS, NV – Despite the COVID pandemic continuing to flare up around the country – and the economic woes that follow in the disease’s wake – Las Vegas has nonetheless managed to set records as home prices have managed to hit all-time highs for the fifth consecutive month in a row, according to recent reports.

October 2020 saw the demand for residences in Las Vegas to continue to climb, with the median sales price of previously-owned single-family homes – which make up the majority of the marketplace – reach $340,000, representing a 0.9 percent increase from September, itself a record-making month for the real estate industry. In addition, jumps in home prices last month saw an increase of 10.8 percent from October 2019, showing that despite the economic impact of COVID still being felt, it hasn’t done much to slow down home prices.

Market inventory is still growing smaller as well, with the end of October seeing only 4,501 single-family homes on the market without offers, a decrease of 6.2 percent from the previous month and a decrease of 37.6 percent from October 2019. 3,225 homes were sold in October, representing a decrease of only 1.4 percent from the previous month but a jump of 11.2 percent from the same time period in 2019.

While negatively affected early on in the pandemic, the Las Vegas housing market bounced back far more quickly than anticipated and has been described as being “on fire” in recent months, due in part to much lower interest rates on loans as of late.

Before the pandemic hit, the record median sales price of single-family homes was $316,000 in February, a milestone that had taken 13 years to reach after the mid-2000’s recession; in mid-2006, right before the market crashed, the record median home price was $315,000.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of HendersonLas Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

rebound

Real Estate Industry in Southern Nevada Evolves to Survive and Thrive in the Age of COVID-19

LAS VEGAS, NV – In a recent report, the lengths that Southern Nevada real estate agents have gone to in order to reinvent themselves amid the challenges presented by the ongoing COVID-19 pandemic were laid out, and it paints a picture of an industry that has not only managed to survive adversity, but actually thrive despite it.

The pandemic initially caused issues for the local real estate market due to mandatory stay-at –home orders and business closures to help contain the spread of the coronavirus, which causes the respiratory disease known as COVID-19. While real estate was considered an “essential business” and thus was allowed to continue to operate, it was nonetheless hamstrung by high unemployment levels and the resulting extreme financial uncertainty in the region, not to mention restrictions caused by social distancing guidelines.

However, the real estate industry has bounced back amid the chaos by adapting to conditions; many agents, according to the interview, have moved everything to a “virtual platform,” setting up 3D online tours of properties in their inventory and producing far greater amounts of video content highlighting the homes and rental units on offer.

In addition, Zoom – a popular video conferencing app – was highly utilized to conduct open houses, a move that may have actually changed the way real estate business is conducted going forward, even after the pandemic is eventually a thing of the past. After all, these steps can greatly decrease the amount of time a sale takes, and it allows people who live in other areas to check out a property without having to travel; instead, they can get all the information they need about their potential new home right in the comfort of their current abode.

That said, Las Vegas has seen a bump in the number of real estate buyers from both out of town and out of state throughout the course of the pandemic, particularly from California, mainly due to the affordable lifestyle in Nevada when compared to their home state.

As for what the future could potentially bring – especially now that Nevada is slowly but surely coming out of lockdown – experts believe that the real estate market will continue its impressive rebound, although that enthusiasm is tempered by the fact that is a so-called “second wave” of the pandemic hits in the fall, the economic damage could be just as bad as the first time… if not worse.

However, the current low interest rates in the market have encouraged many U.S. residents to purchase homes, with noted mortgage loan company Freddie Mac noting that current purchase demand activity has actually gone up 20 percent from the same time period in 2019, placing it at its highest level since 2009.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of HendersonLas Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

Land

38 Undeveloped Acres of Vegas Strip Property Goes for Over $108 Million in Auction

LAS VEGAS, NV – According to reports, 38 acres of undeveloped land located on the famed Las Vegas Strip recently sold for $108.6 million during an online auction that garnered four separate bids by undisclosed buyers.

The virtual auction was the first of its kind held in Clark County due to social distancing guidelines brought about by the ongoing COVID-19 pandemic, which made a traditional in-person auction problematic. The land has been designated as a “qualified opportunity zone,” meaning that it can be developed for a variety of uses, including as a casino, hotels, retail, restaurants, parking, resorts, in addition to a variety of other establishments. The land is just west of McCarran International Airport, which would mean that different parts of the property would have varying degrees of maximum height allowances.

The property is located on the corner of Hacienda Avenue and Las Vegas Boulevard, and is within walking distance of Allegiant Stadium, the upcoming home of the NFL Las Vegas Raiders and the University of Nevada Las Vegas Rebels. The land includes 750 feet of frontage on Las Vegas Boulevard across from the Mandalay Bay Resort and Casino.

The auction involved the sale of six separate lots in the area which were owned by Desert Land, LLC, Desert Oasis Apartments, LLC and Desert Oasis Investments, LLC. The property came into Clark County ownership after the aforementioned firms filed Chapter 11 bankruptcy petitions in the District of Nevada.

At the time, Kavita Gupta was appointed by the Chapter 11 Trustee, and oversaw the sales process and was given management of the debtors’ business and property dealings. The trustee, in turn, engaged Keen-Summit Capital Partners LLC and Colliers International as the real estate agents for the auction.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of HendersonLas Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

Nevada Sign

Moody’s: Nevada Economy Likely to be Hit Hardest by Coronavirus Outbreak

LAS VEGAS, NV – In a recent research report, financial analysis firm Moody’s noted that out of the numerous states feeling the pinch due to the ongoing coronavirus outbreak, Nevada is the one most likely to be hit the hardest financially.

The spread of the coronavirus is making it difficult for experts to pin-point all of the specific factors that can determine what regions will be hit harder than others in terms of statewide economy. However, Moody’s research focused on several key factors – including demographics, trade and travel, tourism, finance, and commodities – and they have used those factors to determine the areas that are most assuredly to be the hardest hit financially.

Unfortunately, Nevada – and the city of Las Vegas in particular – is forecast to be the most affected, due to the fact that it relies on the lucrative tourism industry more than most states. As a result of non-essential business closures and stay-at-home orders instituted by state officials in the early days of the pandemic in order to help prevent the spread of COVID-19 – the respiratory disease caused by the coronavirus – the city has already suffered great financial losses.

This early and deep impact upon Vegas’ economy does not bode well for the speed of its recovery, according to Moody’s Analytics Chief Economist Mark Zandi.

“If you’re getting hit hard now and businesses are failing, and there’s bankruptcy and people are taking on debt or starting to default on debt, it’s going to be harder for those economies to recover,” he said. “So the No. 1 criteria for determining who recovers more gracefully will be who gets hit least hard during this period.”

Hawaii and Washington come in at number two and three, respectively, as states that are expected to experience severe financial woes due to the impact of the coronavirus upon the tourism industry. New York also ranks highly on the list, and currently contains the most cases of COVID-19 out of anywhere else in the nation.

In contrast, West Virginia and Missouri have seen the least coronavirus exposure – at least for the time being – and as a result their economies have been damaged far less, making their eventual recovery a less arduous task. But given the nature of the coronavirus outbreak, these factors and their effect upon statewide economies are subject to change as time goes on.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of HendersonLas Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

COVID-19

COVID-19 Brings House-Flipping in Vegas to Temporary Standstill

LAS VEGAS, NV – With the disturbance that the ongoing coronavirus pandemic is causing in the real estate industry word-wide, house-flippers in Las Vegas – as well as across the nation – have taken a temporary pause while riding out the effects of the devastating outbreak upon the economy, according to recent reports.

Among the organizations putting the brakes on buying homes to quickly renovate and put back on the market to make a profit is the Zillow Group, which is ceasing such activities in Vegas as well as 23 other markets where it engages in flipping, through its “Zillow Offers program.”

The main driving factor behind Zillow’s decision, reports say, is compliance with ordinances passed by many local municipalities dictating that businesses deemed as “nonessential” temporarily close to reduce the spread of coronavirus. But while refraining from acquiring new properties, Zillow will still be selling homes already in their inventory.

In addition, numerous other flippers, both present in Vegas or with a web presence – including Opendoor of San Francisco – is reporting a pause from buying homes in the Southern Nevada region as well while quarantine measures are in effect.

According to experts, the Las Vegas real estate scene stands to be hurt more than average due to the effects of the pandemic for a number of reasons, not the least of which being its massive tourism industry; due to travel restriction measures and temporary business and retail closures – and no certain timetable yet for their re-opening – tourism in Vegas is completely off the table for the time being. This, unfortunately, is causing economic havoc in a city that was previously skyrocketing back to the top after recovering from the mid-2000s recession.

Real estate sales are expected to take a large dip while the coronavirus scare persists, but experts are also predicting a fast turnaround of Las Vegas’ fortunes once again when the pandemic eventually levels off. It’s simply a matter of riding out the storm until it subsides.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of HendersonLas Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

Understanding Leasebacks on Book

“Leasebacks” Playing Increasingly Larger Role in Las Vegas Real Estate Scene

LAS VEGAS, NV – According to recent reports, the Las Vegas Raiders’ practice facility – which is still currently under construction – was sold by team officials last week for the hefty sum of $191 million. But where will the Raiders practice then, you might ask? Why at that very same facility, since right after the sale Raiders officials leased the facility right back, a growing and popular trend in Las Vegas real estate known as a “leaseback.”

A form of flipping – buying a property, building upon it or renovating existing structures, and then selling it for a profit – the leaseback takes the concept to the next level by having property owners sell a building, only to rent it right back for whatever use they may need it for. The practice has generated billions of dollars in revenue in Vegas in recent months, and apparently the Raiders are the latest entity to get in on the action… and they’re not even officially residents of the city yet.

The Raiders sold their Henderson-based headquarters and practice center – which is still being built – to Mesirow Financial of Chicago in February 21, and then immediately entered into a lease agreement with Mesirow for 29 years, with the option of extending that lease for a total of 70 years, divided up into seven separate ten-year options, according to Clark County records.

The rent the Raiders will be paying to Mesirow is not currently known.

Leasebacks are common occurrences in many industries in Las Vegas, including fitness centers, fast-foot restaurants, and casino hotels; the advantages are many, including a large influx of cash up-front to the seller and the opportunity to establish a lock in long-term lease. For the buyer, the advantage is that they have an instant renter for their property, as opposed to acquiring it and then having it sit vacant – and not generating a dime in revenue – while they search for a tenant. However, leasebacks have their potential pitfalls as well, especially if the seller has financial issues or closes their doors for business; but regardless, leasebacks are growing in popularity in Vegas, as the benefits often far outweigh any potential issues that might come down the line.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of HendersonLas Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

Lucky Dragon Hotel

Former Lucky Dragon Hotel Re-Branded and Re-Opened as “Ahern Hotel,” Plans Extensive Renovation

LAS VEGAS, NV – According to reports, the former Lucky Dragon has been given a new lease on life, as new ownership has re-branded and re-opened the facility with plans to give the hotel and casino a huge make-over.

The newly christened Ahern Hotel – named after owner and developer Don Ahern – will eschew the Lucky Dragon’s previous Chinese-themed design aesthetic – most of the decorations, including statues and a dragon chandelier, have been removed from the premises and are currently in storage awaiting sale – in favor of a more conventional look and feel, although the building still features its previous red exterior, but with all-new signs reflecting the name change.

Originally opening in 2008 with 203 rooms and a 27,500 square-foot casino – considered small compared to their local competitors – the former Lucky Dragon was inspired by Asian concepts in an effort to appeal to Asian customers, who were expected to be the resort’s primary customer base.

However, the establishment experienced low customer turnout over the years that it was open and as a result, the Lucky Dragon permanently closed for business on October 2, 2018. It was eventually sold for $36 million in April 2019 to Don Ahern, and reopened as the Ahern Hotel and Convention Center in late 2019.

Currently, the casino is not being re-opened; instead, Ahern noted that he intends to transform the casino into conference and convention space, with work expected to begin in March 2020; currently, the new facility is slated to have a separate name, although that moniker has not yet been publicly revealed.

Ahern estimated that he will be spending less than $10 million on the changes to the former casino space – including new eateries such as an Italian and a sushi restaurant – and hopes the entire resort would be ready in time for a grand opening on July 4, 2020.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of HendersonLas Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

Lotus

New Luxury Apartment Complex Approved for Las Vegas’ Chinatown Region

LAS VEGAS, NV – According to reports, developer Jonathan Fore is set to build a new luxury apartment complex in Las Vegas after having the project recently received the approval it needs to go forward from Clark County commissioners.

Fore is also responsible for the construction of Lotus, an apartment complex located on Spring Mountain Road, adjacent to Valley View Boulevard several years ago. The developer noted that the proposed new complex – dubbed The Pearl – will be a 170-unit building spread out over seven floods, and will be situated nearby the Lotus on the opposite side of Valley View Boulevard.

The first three floors of the building would be comprised of a private parking garage and over 11,000 square feet of retail space at the ground floor, according to documents filed with Clark County. The complex would be on a 2-acre plot of land, and apartments would range from 690 to 1,382 square feet, with rents in the neighborhood of $1,550 to $2,500 per month.

Las Vegas has seen a large number of apartment complexes built there in recent years as the economy has bred rapid job growth and a subsequent influx of new residents from other states looking to take advantage of that fact, as well as Vegas’ overall lower cost of living when compared to many other regions of the United States. Apartment construction in Vegas has been mostly in the suburbs, due to the relative ease and affordability of doing so when compared to other areas of Southern Nevada.

Fore announced that he hopes to hold the groundbreaking for The Pearl in August of this year, and is eyeing a construction completion date of summer 2022. Fore also noted that adding a new apartment complex in Chinatown would be a boon to both prospective future tenants and local businesses, as there are many retail, dining, and entertainment options nearby.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of HendersonLas Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

Apartments Condominiums

2019 Saw Several Las Vegas-Based Apartment Complexes Sell for $100 Million+, Reports Say

LAS VEGAS, NV – 2019 was a big-money year in terms of apartment complex sales, according to recent reports. As an affordable alternative to the rising costs of home ownership in the Southern Nevada region, apartment rentals have surged in popularity in Vegas as more and more people move to the area in search of employment due to the vastly improved economy in recent years.

Several apartment complexes have changed hands in Vegas throughout 2019 for some impressive dollar amounts; one example is Evo, a complex situated in the suburbs that went for $104.5 million shortly before the beginning of the 2020. The complex is indeed impressive, as it offers high-class amenities for residents such as an indoor basketball court, steam and sauna rooms, and a rooftop lounge.

Other apartment complexes that have sold for big money in Las Vegas in 2019 include Allanza at the Lakes for $152 million; Elysian at Flamingo for $104.6 million; Vegas Towers for $104 million; and Pointe at Centennial for $100 million.

However, despite these impressive total dollar amounts, there’s another aspect of these sales that need to be taken into account in order to estimate the true value of these properties- price per unit. Price per unit is relatively simple to figure out- it is the price paid for the complex divided by the number of rental units.

For example, the Evo is a 367-unit complex; since it sold for $104.5 million, the price per unit comes to approximately $284,741. Allanza at the Lakes, which sold for $152 million, has 896-units; that brings its price per unit to approximately $169,643. These contrasting prices per unit totals underscore the fact that there is far more to any rental property purchase than the initial buying price.

The Las Vegas valley is currently the epicenter of investor activity in terms of interest in apartment properties; one property owner recently noted that when he put up three Vegas-based properties in a $241 million bulk deal, he quickly received 40 offers; 30 of those were for individual buildings in the offer, whereas 10 of those offers were for the entire three properties. Clearly, Las Vegas is in the midst of an apartment boom; however, it’s up to landlords to make sure it stays that way with stable rents that take long-term affordability concerns into consideration.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of HendersonLas Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

House with Two Car Garage

“Las Vegas Housing Market Will Continue to Grow in 2020 Due to Low Inventory”

LAS VEGAS, NV – According to a recent interview with a noted real estate professional, the Las Vegas housing market – booming in recent years after laying in dormancy for over a decade – will continue to be fueled going into 2020 and beyond by a number of factors, not the least of which is how the region’s low home inventory will only help to increase overall demand.

The population of Las Vegas is increasing by as much as 50,000-60,000 people annually; that factor, combined with new home construction not keeping pace with demand, has resulted in shortages, especially in price ranges considered affordable to the average working Joe. In contrast, unlike the housing market, rental construction has been keeping pace with demand, resulting in more stabilized pricing.

Homes in Las Vegas at the $350,000 price range are attracting buyers in particular, given the fact that – due to steadily rising prices overall – homes at this price are becoming more and more rare. In recent years, skyrocketing prices of homes in Vegas have begun to raise affordability concerns, as previously Southern Nevada had been lauded for its low cost of living.

While still far more affordable when compared to the national average and especially neighboring states such as California, the cost of a median single-family home in Vegas has been getting to the point where it could potentially become an issue if prices maintain on this path. The $350,000 price range has become the magic bullet, so to speak, offering a balance between profit for sellers and affordability for buyers, especially for new transplants to the regions who have been lured there by job prospects born out of the newly-blossoming economy. In addition, loans for buyers – complete with low interest rates – are widely obtainable in Vegas, although the qualification process is said to be stringent due to the high rate of applicants. Thus, ultimately, getting a house at an affordable price in Las Vegas is a combination of patience and vigilance, in addition to being ready.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of HendersonLas Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

Las Vegas Sign

Dallas Real Estate Firm Purchases $345 Million in Las Vegas Apartment Properties

LAS VEGAS, NV – NexPoint Residential Trust, a real estate firm based in Dallas, Texas, recently made a huge purchase of Las Vegas rental properties to the tune of $345 Million, signifying the group’s desire to get in on the Southern Nevada apartment scene in a big way.

NexPoint acquired four apartment complexes recently- the 528-unit Bloom, the 320-unit Bella Solara, the 315-unit Torreyana, and – through a related party – the 360-unit Elysian at Flamingo, all of which are located in the western Las Vegas Valley. The first three properties were purchased from the Bascom Group and Oaktree Capital Management, whereas the fourth was purchased from the Calida Group, reports say.

This buying spree comes amid a record period of growth for the Las Vegas rental market; following a housing shortage in recent years due to a rapidly-expanding economy and recovery of the local real estate market after a decade of stagnation, developers have surged in the last year, building numerous apartment complexes as a solution to the shortage. 

But regardless of the increase of availability in the rental market, tenants have been forced to contend with a general lack of vacancies and increasing rent prices, creating real concerns regarding affordability. 
According to reports from Moody’s, the average rent for an apartment in Las Vegas in the third quarter of 2019 was $1,138, which represents an increase of 5.2 percent from the same period of time in 2018; the average growth rate for the United States overall in that same time period was 4.1 percent. However, recent reports have indicated that some degree of stability has been occurring in the Las Vegas market due to the increase in rental units, due to the diligence of construction developers.

According to their website, NexPoint Residential Trust is an externally advised, publicly traded, Real Estate Investment Trust, focused on the acquisition, asset management, and disposition of multifamily assets, located primarily in the Southeast United States and Texas. The company pursues investments in class A and B multifamily real estate property, typically with a value-add component, where they can invest capital to provide “life style” amenities to “work force” housing.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of HendersonLas Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.