“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 Property Management specializes in the areas of  Henderson, Las 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, NV – The Vegas Strip is set to welcome back a seasoned player in the hotel game, and one of the most iconic brands in the business. According to recent reports, McLean-based Hilton is slated to open a massive mega-resort – comprised of three hotels – that will potentially add up to one of the biggest multi-brand deals in the company’s existence.

The original Las Vegas Hilton, an enormous resort, opened in 1971 and was located just one block from the Strip at 3000 S Paradise Road until the company’s property management services ended in 2012. However, now the brand is set to return to the Strip in a big way, with a $4.3 billion investment in a sprawling new hotel complex – opening in partnership with Resorts World Las Vegas – that is anticipated to open its doors for business in the summer of 2021.

The hotels, which will be operated under Hilton Hotels & Resorts, LXR and Conrad brands, will offer up a number of amenities for guests, spread out amongst a grand total of 3,500 rooms between the three hotels, and spread out over 88 acres of land. The complex will also feature 350,000 square feet of meeting and convention space, a 5,000-seat theater, and a 220,000 square foot pool complex with seven pools, a spa and fitness center.

The original Las Vegas Hilton – from 1981 to 1990, considered the largest hotel on the planet at 2,956 rooms on 65 acres – was lauded for its posh nature and the large number of celebrities that resided there; of special note was famous rock-and-roller Elvis Presley, who famously owned a penthouse on the hotel’s 30^th floor. The original Las Vegas Hilton is now branded as the Westgate Las Vegas Resort and Casino, owned by Westgate Resorts and operated by Paragon Gaming.

Shelter Realty Property Management specializes in the areas of  Henderson, Las 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, NV – Ascot Group, a New York-based developer, has submitted plans with the city of Henderson for a potential apartment complex to be constructed at the base of a local mountain, according to recent reports.

The proposed apartment complex, which would be comprised of 132 units spread out over three buildings and featuring a separate clubhouse, would be situated behind a neighborhood near the Paseo Verde and Horizon Ridge parkways.

The proposal was submitted in the form of a letter to Henderson by Cray Flynn of the Ascot Group, which included plans drawn up by Wood Rodgers, an engineering firm based in Nevada. City officials will review the plans and respond to Ascot with any concerns, changes, or feedback that they deem needed.

According to the correspondence sent to Henderson officials, a Wood Rodgers representative notes that “The proposed layout of the buildings is designed to complement the overall character of the area while preserving access to the adjacent open space and the Amargosa Trail.”

The project would call for three 45-foot tall buildings, comprised of two building types, according to the letter submitted to Henderson officials. Underground parking would also be available to residents of the apartments, although Ascot states in their letter that they would need to extend two streets through tunnels in order to create access, while encroaching as little as possible upon the surrounding landscape. According to the letter, “the development goals are to maintain and enhance the natural setting of the mountainside.”

It should be noted that this is merely a proposal; Ascot has not officially submitted any official documents or applications to begin actual construction on the apartment complex.

The areas that Ascot is proposing for the potential construction is currently a low-density residential zone; if the project were officially pursued, Ascot would have to successfully petition Henderson to re-zone the area to a medium-density residential district in order to allow it to proceed, as a low-density district would not allow for an apartment complex.

Shelter Realty Property Management specializes in the areas of  Henderson, Las 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, NV – Elon Musk’s The Boring Company has announced that a milestone has been achieved on a massive tunnel project in Las Vegas on behalf of the city’s convention center.

The Boring Company – an infrastructure and tunnel construction company owned by Musk, a technology entrepreneur, investor, engineer, and co-founder of Tesla, Inc. – has been pegged for a project involving the construction and operation of an underground “people mover” that would service the Las Vegas Convention Center, slated to be completed in time for the January 2021 Consumer Electronics Show, according to officials.

After three months of work, the Las Vegas Convention and Visitors Authority (LVCVA) officials announced this week that excavation has been finished on the first of two tunnels – nearly a mile in length and 40 feet underground – that will comprise the people mover, dubbed the Convention Center Loop. The Boring Company will now begin excavation on the second tunnel.

Upon completion of the $52.5 million project, each tunnel will be one-way and will whisk up to 4,400 attendees per hour from the Convention Center’s South Hall across the 200-acre campus in all-electric Tesla vehicles, free of charge. The tunnels will connect the South Hall with the campus’ new West Hall, which was built when the Convention Center recently underwent an extensive expansion and renovation valued at $1.52 billion.

The tunneling was achieved by way of a massive machine that will now be taken apart, transported back to the South Hall, and reassembled, at which time it will start the tunneling process anew, this time on the second tunnel.

The project is designed with the potential to be expanded as needed in the future, and could aid in easing congestion throughout the Las Vegas resort corridor if needed, officials say.

Shelter Realty Property Management specializes in the areas of  Henderson, Las 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, NV – With the recent news that the city of Henderson has approved the operation of Airbnb – an online marketplace for arranging or offering lodging – within city limits, some questions have been raised – such as what’s the best way of getting involved, and what precautions should you take?

According to a recent article, there are a number of important things you should bear in mind if you’re considering renting out your home on Airbnb, a process that has been described as potentially fraught with difficulty; that is, unless you’re armed with the following knowledge.

First of all, make sure your dwelling – whether you’re renting out a couch, bed, room, or an entire house – is ready to go once you place your Airbnb listing. Believe it or not, you can be hit with an immediate booking, so it pays to make sure that your space is clean, presentable, and that there are no issues to deal with, such as water quality or defective air conditioning. Any negative reviews and/or cancelled stays can affect your “Super Host” status, which in turn affects your placement in Airbnb searches.

Next, make sure that you do your homework and familiarize yourself with all of the regulations and guidelines in your community or municipality, as well as Airbnb’s rules in order to ensure that there is nothing illegal about your venture. Sometimes local laws can be tricky when it comes to short-term rentals and it’s your duty to adhere to them in order to prevent your guests from encountering any headaches during their stay.

If you don’t live in the property that you’re renting out via Airbnb, then it’s probably a smart move to hire a property manager to take care of things in your stead. Cleaners, plumbers, electricians and more can be hired as needed by a property manager, and problem tenants can be dealt with in a timely manner, saving you stress and financial hardship.

But regardless of your preparations, things will inevitably go wrong; be it a burst water pipe, an infestation of insects or rodents, or a host of other issues, so be prepared for to encounter a problem, one which you will have to solve quickly and efficiently.

Also, bear in mind that while short-term rentals often allow you to charge more per night than long-term rentals, you could always end up having more overhead as well. Short term rentals patrons are most likely to be on vacation, and will be using significant amounts of air conditioning, electricity, hot water, internet, and all sorts of other amenities; figure this into your financials and make sure you charge fees that make renting worth it in the long run.

Additionally, Airbnb allows hosts to set policies regarding cancellations, fees per-guest, fees for excessive amenity use (hot water, electricity, etc), requirements for damage deposits, and more. Make sure you set guidelines for potential renters and stand by them to make sure you’re not taken advantage of or you’re liable to lose money at the end of a stay when guests have invited more friends than you thought for a huge or destructive party. And finally, just remember that you won’t make everyone happy. No matter how much you prepare, someone will find something to complain about. Just accept it, move on, and look forward to the next guests in your home…and the money they will bring.

Shelter Realty Property Management specializes in the areas of  Henderson, Las 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, 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 Property Management specializes in the areas of  Henderson, Las 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, NV – shareDOWNTOWN, a new Las Vegas apartment complex which completion is expected in May 2020, will be offering a new and unique twist on the lifestyles of its tenants; a focus on healthy and active activity and is said to truly set the facility apart from the many other apartment buildings springing up in the region.

Currently under construction by Cherry Developments in the Arts District at Casino Center Drive and Colorado in the downtown are of Las Vegas, shareDOWNTOWN focuses on small, affordable apartments conveniently situated within a busy employment area, giving local workers a place to live within easy walking distance of their jobs.

The apartment complex, which will be four stories in height, will feature over 60-one bedroom units, which are being aimed at people who work at the many bars, clubs, restaurants and retail establishments that are in the area. The apartments are slated to be 480 square-feet in size, with a projected rent ranging from $1,100 to $1,300 per month.

But the truly unique draw of shareDOWNTOWN will be the emphasis placed upon physical fitness and health; reports say. Unlike the average apartment complex, which typically features gym or fitness facilities in one centralized location in the premises, shareDOWNTOWN will offer calisthenic exercise stations on each and every floor, allowing residents easy access to the equipment they need to adhere to a healthy and active lifestyle.

Eschewing complex machinery and equipment in favor of what the developer referred to as “an urban style workout,” shareDOWNTOWN’s exercise rooms primarily rely on body-weight exercise stations that will provide for a full-body workout making use of movements such as dips, pull-ups, push-ups, and more. Such exercises, the developer says, are effective, as they don’t rely on machines that can become “outdated” or bulky dumbbells and free weights. Instead, they merely utilize the tenant’s own body alone, which can have its own advantages when it comes to convenience and safety.

Rendering photo credit: shareDOWNTOWNLV on Facebook.

Shelter Realty Property Management specializes in the areas of  Henderson, Las 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, NV – Short term rentals were recently approved for operation in Henderson, Nevada, with the Community Development manager laying out a series of rules and legal guidelines that participating residences must abide by in order to operate on these services.

Short term rentals have been steadily gaining in popularity over the years as a cheap and convenient way for landlords to accommodate guests with short-term lodging and tourism-related activities by essentially renting out their home to relative strangers. Much like ride-sharing services such as Uber and Lyft and the drivers they employ, AirBNB, VRBO, Booking.com, do not own any real estate listings, nor do they host events; instead, the services acts as a broker, receiving commissions from each booking.

Initially approved by the City of Henderson in mid-July of 2019; previously, short-term rentals where only allowed in commercial-tourist zoning areas, such as Lake Las Vegas. However, Henderson officials changed their stance on the issue after the City of Las Vegas made regulations governing short-term rentals far stricter. Seeing a potential money-making opportunity for Henderson – it’s estimated that the city could make as much as $370,000 annually with the introduction of Airbnb into the community – officials approved the move, albeit with a series of regulations of their own attached.

According to the City of Henderson, Short term rentals are allowed to operate in residential areas within the limits of Henderson as long as they adhere to the following set of rules:

1. The local Homeowners Association (HOA) approves, and the homeowner proves compliance with HOA rules.
2. The owner of the property must take a class at the College of Southern Nevada (Cost: $250. Duration: 2 days in-class or 2 weeks online).
3. Pay the City of Henderson an annual fee of $820.
4. Pay a 13 percent monthly lodging tax.
5. Install noise monitoring systems both inside and outside the home (via a company like Noise Aware).
6. Notify all neighbors within 200 feet of the property (via certified mail) that the home is going to be an Airbnb.

Rentals can range from a complete home, a single bedroom, or even just crashing on someone’s house in a pull-out sofa bed. The allure of allowing short term rentals within Henderson is obvious when it comes to a cash-flow standpoint; the services have been generating significant revenue in other regions of Nevada for some time now. For example, in 2019 Nevada Airbnb hosts ‘as a whole’ earned $53.5 million from Memorial Day weekend through Labor Day, according to figures released by the company. In addition, Clark County Airbnb guest usage generated $36 million in a period spanning from May 25 to Sept. 2 that same year.

Another reason for Henderson’s approval of is a potential remedy for the ongoing issue of the unauthorized renting of homes in the area; in addition, officials have announced that they will be working with an outside company that will monitor rental websites – utilizing advanced compliance software – for local homeowners who are violating rental ordnances; those who do may face fines of $500 a day that the property is rented. Instances of holding a party or wedding, or operating with a suspended license, will also incur a $500 a day fine.

Clearly, Short term rentals are growing in popularity and government officials of Henderson – faced with the dollar amounts other areas of Nevada have seen an influx of recently in conjunction with the short-term lodging service – found it was in the city’s best interests to get in on the action themselves.

Shelter Realty Property Management specializes in the areas of  Henderson, Las 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, 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 Property Management specializes in the areas of  Henderson, Las 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, 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 Henderson, Las 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, NV – The Las Vegas real estate scene has been on an upward trajectory ever since the recovery of the recession, and the apartment scene has been no exception. With more and more businesses calling Vegas home as the economy has improved rapidly, more and more people have been picking up and moving there in search of job opportunities, and apartments offering a fast and less expensive alternative to houses for single people or new families just starting out.

Until recently, given the rapid growth of Vegas real estate, housing prices – including apartments – have been steadily on the rise, igniting affordability concerns in many; however, according to the Nevada State Apartment Association, Vegas apartment rents, while still rising, are nonetheless doing so more slowly than in recent months and years past.

Based on reports, the average rent in Las Vegas towards the end of 2019 was $1,080 per month, which represents a 4.5 percent increase over the same period one year prior; in contrast, the rent growth from 2018 to 2017 was 7.4 percent. In addition, late 2019 saw an apartment vacancy rate of 6.5 percent, a drop of .3 percent from 2018 and an increase of 11 percent from the depths of the recession era.

Clearly, according to these figures, apartment vacancy rates are declining, and rents are increasing, albeit more slowly than in recent years. Part of the slowing in rent increases can be attributed to the current market inventory; responding to demand, with developers constructing more apartments, with over 12,000 going up in early 2015, and over 2,100 built in 2019. Additionally, reports note that the new 3,800 are slated to go up in 2020, with many of them to be located near the famed Las Vegas Strip, as well as along the I-215 Beltway adjacent to Henderson, Summerlin and the southwest valley.

Shelter Realty Property Management specializes in the areas of  Henderson, Las 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, NV – According to recent reports, 2020 in Las Vegas is expected to be the year of the condominium, as the affordable housing alternative – often replete with numerous amenities that stand-alone house owners aren’t privy to – are showing a distinct increase in popularity.

The reasons condos are attracting so much attention from buyers recently are numerous; many people prefer the security that living in such a community often affords its residents, whereas others also enjoy the different amenities – such as fitness facilities, gaming clubhouses, and swimming pools – that are typically available to residents.

And the fact that condos are, on average, cheaper than full-on home ownership in a real estate marketplace with steadily climbing prices is an attractive feature as well, allowing owners to be able to swing the cost of living in an affluent community that they might otherwise not be able to afford.

Some condos run from the $200,000s to $300,000 range for one- and two-bedroom condominium flats and three-bedroom loft-style town homes, ranging from 1,058 square feet to 2,500 square feet. In contrast, the median price in Las Vegas for a single-family home in December 2019 was just under $313,000, and those homes do not come with the additional benefits provided by living in a condo community, including the aforementioned security, amenities, and other extras, such as landscaping, underground parking, and more. Many condo communities are also situated near major shopping and entertainment complexes, or sometimes even feature their own exclusive shopping facilities for residents to use.

With the prices of the Las Vegas housing market still climbing since the end of the recession (although prices are starting to slow and stabilize as available inventory increases), more and more people it seems are turning to condominiums for their housing needs, and as a result more developers are constructing additional condo units in order to satisfy that need.

Indeed, while the Las Vegas housing market as a whole remains one of the most prosperous in the nation, 2002 is expected to see condos come to greater prominence than they have in many years.

Shelter Realty Property Management specializes in the areas of  Henderson, Las 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.