Archive for December, 2012

Red Rock Business Center Drawing New Tenants

Wednesday, December 5th, 2012

The Red Rock Business Center at 6180 Brent Thurman Way acquired new life and vigor as a rental property. WGH Acquisitions, a Las Vegas-based concern, has purchased this bank-owned building and is rehabilitating the center which has been empty for two years. WGH is hoping that the building’s strategic location near Russell Road and Las Vegas Beltway will draw much-needed tenants. The building is visible from multiple directions of the Beltway, providing a unique location for the center.

Already, Keller Williams Realty, which is expanding its southwest Las Vegas Valley operation, has signed a lease for a 13,000-square-foot space at the Red Rock Business Center. More of such leases are being negotiated following the well-attended open house held recently at the center. Some sixty commercial real estate agents attended the center’s open house, and they were briefed on the improvements that are in the works for the property.

The Red Rock Business Center is undergoing a major facelift, having been vandalized in the years that it sat idle. WGH is putting in new landscaping, constructing a stone façade, and replacing windows for better energy efficiency.

The pricing for the center was quoted at $1.45 per square foot. There’s an additional 30 cents charge per square foot for the maintenance of the building’s common areas. A lease agent said that the center, as it is shaping up now, has received a lot of positive feedback. This widespread interest indicates that the center will generate good lease activity, another agent agreed.

WGH Acquisitions paid U.S. Bank $3.1 million, or slightly below $40 per square foot, for the center which consists of two building structures with a total floor area of 74,246 square feet. A WGH partner, David Garfinkle, expressed satisfaction with the purchase. He said that his company will still pour a substantial investment to complete the base buildings and institute property improvements. Notably, each building will sport its own pylon sign which is expected to be put up within the next thirty days. The buildings’ façade will also have available space for signage.

WGH also purchased another building at Rainbow Sunset, a four-story edifice with a floor area of 108,000 square feet. The company is also negotiating for the acquisition of the mothballed ManhattanWest condo project on Russell Road also near the Beltway. Garfinkle said that these initiatives manifest their confidence on the long-term economic prospects for Las Vegas.

Las Vegas Home Market Gains Noted

Tuesday, December 4th, 2012

A study covering the inclusive period of October 2011 to October 2012 indicated that the ailing U.S. home market might have entered a stage of recovery. The analysis, which appeared on the monthly housing summary of Realtor.com, showed that listed home prices in sixteen major metro areas across the United States rose by double-digit levels during the one-year period. Notably, even some of the areas hardest hit by the real estate meltdown, like Las Vegas, appear to be gaining some stability.

The Realtor.com market reading covered 146 U.S. metro areas. Several market data were factored into the analysis, among which are total number of listings, median list price, and median age of inventory. The monitored asking prices of residences for sale indeed indicate that the sellers engaging the market are showing a higher level of confidence. Increases in the median list price were noted in over one-half of the studied cities.

Las Vegas, one the cities hit the earliest (as well as the hardest) by the mortgage foreclosure in 2006, may have reached a turnaround point earlier this year. According to the Realtor.com study, the average listing price in this metro area gained 12.41 percent from October 2011 to October 2012. This increase was traced to home investors hunting for bargains as residential prices started to level off and showed signs of stability.

Curiously, the state of California which led in the housing boom and bust as a result of subprime mortgage lending, now appears leading the U.S. home market out of that debacle, as Bloomberg observed. Eight California cities are in Realtor.com’s list of top sixteen metro areas which posted double-digit spikes in home asking prices.
Sacramento topped this listing with a gain of 31.01 percent, a hefty increase that was reflected even on a month-to-month gain. The median list price rose by over 14 percent for this metro area from September to October this year, the only U.S. locality to have achieved such a monthly double-digit gain.

Median home list prices Santa Barbara, which came in second in the listing, rose 27.03 percent. Significant reductions in housing inventory have been registered in this California metro area for the past two years. Another California city topping the Realtor.com list, San Jose, at fourth place, experienced a 20.49 percent increase in the average asking prices. Several months ago, Zillow ranked this metro area as the No. 1 sellers’ market in the U.S. Realtor.com also tagged San Jose as a “top turnaround town” where the homes listed for sale have fallen already by 44 percent.