Residential Real Estate

A so called "Celebrity Real Estate Agent" has released a video of himself giving his point of view or take on commercial property that is or seems to be going into foreclosure in Las Vegas, NV.

The problem is he has a layman's (residential Agent's) view of the situation.  His example of Deutsche Bank having so many properties in and around the "Strip" that are in trouble is laudable.  But, he doesn't understand the commercial mortgage market right now -- as I write this.  Deutsche Bank has written a lot of commercial loans on "Strip" properties, but that doesn't mean they or the property owner will have a significant interest in these properties for years to come.  And, their investments will pay off in time. 

For example:  He mentions Town Square as being in foreclosure.  Yes.  It is on the Notice of Default list.  BUT.  I have had the opportunity to discuss this shopping center's financial situation with representatives of the owner.  It all boils down to: this foreclosure notice is a power play by the bank.  I know first hand that Turnberry has been for more than a year been trying to refinance their debt for better terms, reduced loan amount and monthly payment.  And, I don't blame them for doing this.

When you are as strong financially as Trunberry, and you are seeing nationwide "other" developers re-negotiating their loans successfully, you follow suit.

Will Turnberry lose Town Square to foreclosure?  I can't answer that.  (As a proper disclosure, Turnberry did fail miserably with The Las Vegas Fountainbleau and it eventually Sold to Carl Ichan.)  However, Town Square was built at the right time, in the right location, and with the progressive future development of pads and other buildings in their overal plans, this property has a promising future regardless of the loan status that will go a long way into the future.) 

And, Jeffrey Soufer knows this.  (I think he got in over his head with The Las Vegas Fountainbleau.) But, Town Square is more in line with his true development experience.  He will fight the good fight and NOT let the bank take this property back.  (They will most likely file bankruptcy -- as they did on The Fountainbleau and reduce the debt significantly just as other companies have over the last two years.)

That leads us to whether investing in Las Vegas is still a viable option.  I firmly believe it is.  Even if prices of homes are still trickling down, there are still worth while commercial investments that may require some capital to re-tooling a property.  And that is when you can get back a good return on your investment.

Also, if you are an owner of a commercial type building, you need to visit: http://www.realisticterms.com/.  Yes, it is a little bit of a pain to hear some one explain to you again how to save your property, but these guys got it right.  And, they have been doing it for several years before it became fashionable.

If you have any interest in Las Vegas Real Estate contact me at (702) 501-9388 or by email at david@davidhowes.net.