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Juhl Tops Off In Las Vegas; Move-Ins Scheduled for Spring 2008 By Kelly Sheehan, Online News Editor For Multi-Housing News


CityMark Development has topped off its mid-rise condominium building, Juhl, in downtown Las Vegas. The mixed-use project is located at the southeast corner of Bonneville Avenue and Third Street.

600 to 2,500 square feet. The project will also offer street-level shopkeeper units, available in more than 100 floor plans. Many homes are also customizable, allowing residents to personalize their living space.

This is the six-building community’s first topping-off. Juhl will consist of six towers, ranging from six to 15 stories, and feature 341 units as well as 24,000 square feet of retail space. Juhl broke ground in June 2006 and move-ins are scheduled to begin in spring 2008.

Units’ features include 10 foot ceilings with exposed mechanicals; floor-to-ceiling dual-glazed windows with low E glass for sun protection and energy efficiency; granite slab countertops; European maple cabinetry; stainless steel appliances; and Grohe plumbing fixtures. In addition, each home will come pre-wired for high-speed Internet access.

Studio, one and two bedroom residences will range in size from


Juhl homeowners will enjoy a two-story state-of-the-art fitness facility; rooftop courtyard featuring a 75 foot pool, spa, cabanas, lounge chairs, barbecue grilling areas and teak wood decks; and ninth-floor view deck that affords views in every direction. Juhl also will provide gated parking and 24-hour security. Located only blocks from the famed Fremont Street Experience in the heart of downtown Las Vegas, Juhl is just steps away from world-class shopping, dining and entertainment.


Apartment Rentals May Offset Sluggish Multi-Family Market By Linda Frembes, Freelance Writer

While much fuss has been made in the news lately about price drops in the single-family housing market, the multi-family housing market has taken a few blows of its own. Over the past year, multifamily inventory has risen while prices have dropped, especially in markets where speculative buying was popular. This change is occurring after a heady time in the multi-family market. According to management consulting and investment banking firm FMI Corporation, Raleigh, N.C., the median price of condos rose at a higher rate (57%) than the median price of single-family homes (25%) between 2001 and 2004. Previously, sales of multi-family homes had been driven by several factors, including the recent trend of condo conversions, short-term investment properties, and private owners turned landlords who can both live in the home and rent out the remaining units. According to Reed Construction Data's “U.S. Construction Outlook 2007-2008,” the current multi-family slowdown is the result of financial mismanagement rather than a weak job market or high credit costs. The report predicts that the slowdown will be severe for condos but perhaps not for apartments. Overall, the multi-family surplus is expected to last well into 2007 before it is fully absorbed. “Last year, the condo market crashed along with the single-family homes, but the apartment rental segment still grew since people have to live somewhere,” says Jim Haughey, director of research & analytics for Reed Construction Data, Norcross, Ga. “Typically, the single and multi-family markets have an inverse relationship. As the single-family housing market drops, the multi-family market gains in terms of rentals.” Immigration is a big factor fueling the apartment rental segment of multi-family because “due to cost, an immigrant's first home tends to be a rental rather than a purchased home,” notes Heather Jones, construction economist at FMI. “We're looking at a massive amount of immigration over the next several years, so the growth in the apartment segment will continue.” ACCESSLASVEGAS Developed By:


Jones points out that in 2006 the multi-family housing sector had expected a large downturn but instead registered a mild growth of 1%. “But the market was coming off of huge gains from the past several years,” she said. “Now, I see the multi-family market improving with 5% growth in 2007 and possibly 7% in 2008.”

“Last year, the condo market crashed along with the singlefamily homes, but the apartment rental segment still grew since people have to live somewhere...” Jim Haughey

The multi-family market has not suffered as large of a drop as its single-family counterpart because mortgage rates are still reasonable and the softening of price due to surplus inventory makes it an attractive option for first-time home buyers. Regional factors also play a role in the multi-family market. “There is more demand in the South and Southwest; and anywhere that is land-starved with dense populations,” says Jones. “They tend to build up because they can't build out. Urban Revitalization is also adding condos onto the market in mix-use development.” Haughey agrees that multi-family development is significant in urban centers and older cities as well as resort markets such as: Las Vegas; Tampa, Florida; Miami; and Myrtle Beach. He also notes there are often construction starts that are never finished on massive investment complexes that include hundreds of condos. “Those that are completed release several hundred units onto the local market that depresses price and leads to a regional surplus,” he explains. According to new data from the American Housing Survey (AHS) for the National Association of Home Builders (NAHB), the segment of the multi-family market occupied by Americans age 55 or older is growing. “There were an estimated 41.8 million households headed by someone age 55 or older in 2005, accounting for 36.8% of all U.S. households. Those figures are expected to increase to 53.2 million and 41.7%, respectively, by the year 2014.” As the population ages, the uses of multi-family housing is expected to change as well. Although the multi-family market looks to remain fairly stable in 2007, Haughey points out that there may be a surprise on the horizon. “One lessthought-of option is manufactured homes,” he says. “It is an inexpensive alternative to a condo or apartment, and recent quality improvements have heightened their image. A rise in manufactured housing would add affordable homes on the single-family market and cut into the multi-family market.”



Las Vegas Metro Occupancy May 2006 through April 2007 100% 98% 96%




95.51% 94.10%










Source: CB Richard Ellis


Ap ri l

ar ch M

ua r Fe br

20 0 ry



r Ja nu a





be r N

be ct o O

ov em


r be em

Ju ly

Ju ne

Au gu st

Se pt



20 06




Las Vegas Snap Shot KEY INDICATORS

Source: Red Capital




Vacancy Trend


up 0.6%


Effective Rents


up 4.9%


Cap Rate


down 0.6%



up 36,100



Access Investment Offerings COMMUNITY (UNITS) Emerald Suites (717)

ASKING PRICE $ 90,000,000

PER UNIT PRICE BROKER / CONTACT INFORMATION $ 125,523 The Bentley Group / 702.855.0440

Deer Creek Apartments (328)

$ 28,500,000

$ 86,890

The Bentley Group / 702.855.0440

Sierra Ridge Apartments (193)

$ 22,000,000

$ 113,990

Dunn Properties / 702.878.5000

Arabella Apartments (120)

$ 15,000,000

$ 125,000

The Bentley Group / 702.855.0440

Bruce and Rochelle Apartments (60)

$ 5,495,000

$ 91,583

NAI Horizon Las Vegas / 702.938.6561

College Court Apartments (42)

$ 3,150,000

$ 75,000

The Bentley Group / 702.855.0440

Lido Arms (38)

$ 2,950,000

$ 77,631

Hendricks & Partners / 702.866.6333

Access Recent Transactions COMMUNITY (UNITS)



Mesa Club (368)

$ 43,800,000

$ 119,022

May 14, 2007

To Be Announced

Piedmont Springs (100)

$ 8,450,000

$ 84,500

April 20, 2007

Shalimar Vavra

The Palms (200)

$ 9,904,784

$ 49,524

April 17, 2007

Gary Gallelli Jr. and Sr.

Estancia (252)

$ 35,640,000

$ 141,429

April 12, 2007

Mark Hammerschmidtt

Embassy (74)

$ 6,400,000

$ 86,486

March 29, 2007

Fisher Brothers

Mirabella (344)

$ 23,300,000

$ 67,733

March 28, 2007


Ridgewood (112)


$ 76,786

March 27, 2007

ACI Commercial




For additional information and / or broker information on Access Investment Offerings and / or Access Recent Transactions contact Michael Fazio at 702.755.7477.



Former Apartment Community Has Strong Sales As Condos Former apartment community Princess by The Lakes, now Dolce by The Lakes, has reported strong sales as condominiums according to sales agent Pauline Knowles. "Many people have been quick to make the choice to live at Dolce since it gives them a chance to own a home in this very desirable area," she said. "Given everything that owning a home at our community offers, it's no surprise how strong demand for our homes has been." The nearby Canyon Gate Country Club is available for residents as is The Lakes and the Desert Breeze Park, which offers walking trails, picnic areas and a dog park. The gated property offers mature landscaping and winding paths.

promotion that allows home buyers to apply up to 3 percent of the home's base price toward closing costs, some buyers may qualify for a reduced earnest money deposit and Frigidaire washer and dryer," said Knowles. The Acqua measures 704 square feet and features one bedroom and one bath. Measuring 1,016 square feet is the Capri, which contains two bedrooms and two baths in an open floor plan. The largest unit is the Solare at 1,154 square feet, which includes three bedrooms and two baths. The plan features an open design. Prices start in the high $130,000’s. Dolce by The Lakes is located at 2750 South Durango Drive, between Sahara Avenue and Desert Inn Road.

Las Vegas Feels The Heat As Housing Prices Dip


The first government housing-price numbers are in, and they're not pretty. But the figures certainly are not as bad as other surveys make them out to be. According to the Federal Housing Finance Board's quarterly survey of the country's 32 largest metropolitan areas, the average price of both new and resale houses dipped 1.4 percent in the first quarter. That's the first decline recorded by the FHFB in decades. Let's take a deeper look into the housing finance board's first-quarter findings:

"Residents report that they love the close proximity to the things they need. When you live here, you are surrounded by great restaurants and shopping opportunities. While we talk a lot about the benefit that comes from the wonderful location, as soon as a resident gets home, the great amenities they can enjoy makes buying a home here an even greater value," said Knowles. Amenities include indoor and outdoor pools, a spa and a sauna. Residents also have access to barbecue areas throughout the community, a fitness center and a clubhouse. Assigned covered parking is available for select homes. Interior amenities include stainless steel appliances, a balcony or private patio, decorative blinds throughout, designer-selected two-tone paint, custom-designed cabinetry and 4-inch baseboards. Select homes offer granite countertops, brushed-nickel features and wood-burning fireplaces. "Right now, we are offering some great incentive packages for those that use our preferred lender. In addition to a special


Of the 32 markets covered, 18 reported declining prices. Most of the 14 that recorded higher prices are located in the nation's heartland and did not take part in the buying frenzy that caused prices to soar in many big coastal markets. One poster-boy market for excessive prices -- prices driven up in large part by investors who were trying to may a quick buck by turning over their house shortly after buying them -- showed a big drop. That would be Las Vegas, where the average fell 9.4 percent, from $350,200 to $317,400. Numerically, the national average when the first quarter ended March 31 was $318,000, down from $322,400 at the same time a year earlier. But it's a modest decline compared to what other price surveys will soon report. One reason the housing finance board's figures tend to be higher than those of other studies is that it includes new homes. Despite the giveaways and other come-ons used by builders these days to reduce standing inventories, new homes still lead when it comes to setting the price pace.


ELAD Properties Rising Rents Put Pays A Record Squeeze On $33 Million An Acre Apartment Dweller By Brian Wargo For New Frontier Move over, Elvis. Vegas needs Eloise impersonators. ELAD Properties, owner of The Plaza, announced a $5 billion plan to build a "Plaza-inspired" casino-condo-hotel complex on the Las Vegas Strip. That means little Eloise -- who made The Plaza home in the eponymous series of children's books -- could be singing "Viva Las Vegas" by 2011. And if ELAD Properties President Miki Naftali plays his cards right with the Vegas venture, he may build 20 more Plaza's worldwide, from London to Tokyo. "I think it's terrific. You can never have too much of New York," said Donald Trump, a former Plaza owner whose Trump Towers will sit near the new Plaza. Not everyone agreed. "It's an insult," said Rose Ganguzza, whose 2002 documentary, "New York at the Movies," was filmed in The Plaza. "The Plaza was like this wonderful, fantastic wedding cake for everyone, and now they made it like a high-priced piece of Entenmann's cake." The Plaza Las Vegas (not to be confused with the one in downtown Las Vegas) will contain a 3,500-room luxury hotel, 300 private residences restaurants, retail, convention space and a casino. The main resort is said to be a replica of the New York landmark. The New York Plaza is a 19-story building, which holds 800 rooms, and the new hotel will have 3,500 rooms. This may cause some design challenges, especially with the escalating construction costs across the country. The New Frontier will close in July 2007 and be demolished in early 2008. No groundbreaking date has been announced for The Plaza.

The growth in apartment rents is beginning to slow in the Las Vegas Valley as more and more residents move out of their complexes because they can no longer afford their leases, according to a tracking firm. Apartment lessors requested average rents of $872 during the first quarter, a 4.3 percent increase over the $836 sought in the first quarter of 2006. That's a bit of a break for tenants because landlords were seeking a 6 percent increase a year ago, according to local research firm Applied Analysis. The rising rents lowered occupancy to 94.1 percent in the first quarter. It stood at 95.4 percent during the fourth quarter. Competition from condos and singlefamily homes, many with rental prices that have been attractive, have had an impact as well, said Applied Analysis Principal Brian Gordon. "The escalation of prices has been challenging for some consumers to afford in certain portions of the valley," Gordon said. "They are moving to more affordable parts of the valley or out of the market in some cases." The rental rate growth of 4.3 percent outpaces the rate of inflation, but it is better for consumers than the increase of 5 percent to 7 percent in recent years, Gordon said. He said rental growth should remain steady at 4 percent for several quarters. Despite the drop in occupancy and slowdown in rent growth, the dynamics of the market will improve for apartment owners because of the large number of construction jobs and casino jobs being created in the next two to three years with development along the Strip, Gordon said. In addition, many residents who lose their homes through foreclosures will also be moving into apartments, he said. Among highlights of the report:


Henderson and the southeast had the highest rent at $977 a month. That was followed by the southwest with $975, northwest with $883, south with $878. The northeast had the lowest rents at $770 a month. The west had $870, the north, $860 and the central and east had $817. The northwest had the highest growth rate at 6.4 percent while the northeast has the lowest growth rate at 2 percent. Brian Wargo covers real estate and development for In Business Las Vegas and its sister publication, the Las Vegas Sun. He can be reached at (702) 259-4011 or by e-mail at wargo@lasvegasun.com.

W Las Vegas Officially Cancels The W Las Vegas hotel and residences were set to open sometime in 2009 but Edge Resorts has cancelled the project. A letter received recently, by a potential W owner, stated the following: “Construction costs and financing requirements have grown considerably as we have pursued the development of this project, and it has become extremely difficult to successfully get the costs under control in order to make a proposed project such as ours feasible. As you are likely aware, many proposed projects in Las Vegas are either going on "hold" or being canceled. We appreciate your patience as we have attempted to deal with these issues. Unfortunately, after thorough analysis and discussion, we have decided to cancel the proposed W Las Vegas Residences project. Our contractual license to develop the W Las Vegas expires on May 18, 2007.” The project seemed doomed from the start. Edge Resorts snapped up George Clooney's failure, Las Ramblas, in the hopes of developing something that would complement a hot Las Vegas real estate stretch of Harmon Avenue. For now, we will give W the benefit of the doubt and say all hope for a W Las Vegas is not lost. Some other developer could come in and take over the project, but don’t count on it.


Rate Increases: Perception Is Reality No one wants to pay more for their apartment or to feel as though they're being affected by circumstances beyond their control. When it comes to increasing rents, it's important to remember the old adage that perception is nine-tenths of reality. This simple idea creates a twofold result: 1) it gives residents some control over the amount of their increase, and 2) it takes their focus squarely off of the rate increase alone and puts it on what they can stand to save. Start 120 days before a renewal with a rent increase / lease renewal letter, and include an attractive early bird incentive. If, for example, you need to increase your rate by 5% on a $1000 per month apartment, or $50 per month, inform your resident that rent is being increased by 8%, but offer them a 3% discount if they come and renew the lease within the next two weeks, 2% within four weeks, and 1% with the next five weeks. Design your letter to take the focus off of the increase and instead spotlight the savings they'll receive for renewing early:

Hispanic Rental Segment Grows Faster and Faster With our Hispanic population growing, you can be sure that if you're not already



• • •

The 3% discount = $30 per month or $300 per year. The 2% discount = $20 per month or $200 per year. The 1% discount = $10 per month or $100 per year.

struggling to bridge a communication gap, you may be soon. One solution is to implement a "Customer Service Spanish" class for your team. The key here is to first determine the vocabulary needed to communicate effectively with prospects, residents, and vendors. Hold a group Brainstorming session to discuss situations where it would be helpful to know specific words or phrases, and make a list, creating separate categories for leasing, management, and maintenance. To find teachers or tutors in your local area who will help you learn the words and phrases you've Brainstormed, try craigslist.com, searching on "Spanish lessons", or the language department at your local high school, community college, or university. You may even have a qualified staff member or resident. You could hold one class for all staff, or divide into groups for special attention to management, maintenance, and leasing scenarios.

The amount of the increase is in the resident's hands because the sooner they act the more they'll save, and you've given the resident a perception of having saved while you're still fulfilling your mission to increase revenue. Implement your property tip today!

This will by no means make your entire team fluent in Spanish, but a few lessons, a little dedication, and lots of practice will help your team communicate more effectively across the language gap! Between 1995 and 2005, the number of Hispanic renter-occupied households increased by nearly 1.2 million or 25 percent. Forty-eight of the 50 states registered gains in Hispanic renteroccupied homes. The rapid growth of the Hispanic population is having a profound effect on the U.S. economy and is prompting a dramatic evolution in the way business is conducted. The real estate industry, specifically the apartment sector, is no exception to this newly required order of business. Companies must act now and be proactive. Successful businesses react to changes in the market place; they don’t expect the market to adjust to them. The future is now...focus on it!


Advanced Management Group Develops Access Las Vegas Access Las Vegas, developed by Advanced Management Group, is a bi-monthly informational newsletter created with asset managers and owners in mind. Access Las Vegas ensures accurate market information, industry articles and multi-family housing trends that are delivered with flawless precision. Our goal when developing this newsletter was to deliver the strongest content possible, while helping asset managers and owners think differently than in the past. The multi-family housing industry changes quickly and we do not want you to fall behind, your financial success depends on staying ahead of changes. So Access Las Vegas, and leave the rest to us... Advanced Management Group Nevada, LLC is a real estate management company providing advanced property management, financial and accounting, and asset management services for multi-family properties in the southwestern United States. Specializing in each of these facets, Advanced Management Group strives towards excellence, with a foundation built on a close personal interest to our owners and owners’ assets. Advanced Management Group can be contacted at 702.699.9261. For information, article consideration and featured columns Access Las Vegas can be contacted at 702.755.7477. The editor of this newsletter is Michael Fazio.

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