Category Archive : Economy

LAS VEGAS, NV – The Gramercy – formerly known in its original incarnation as “ManhattanWest” – has sat partially finished in Las Vegas for a number of years, a mute testament to the impact of the recession upon Southern Nevada real estate. Construction originally started on the 187,000 square-foot mix of retail, office, and apartment space in 2008 by investor Alex Edelstein’s Gemstone Development, who pulled out six months after the first brick was laid – $170 million poorer – amid the crushing blows dealt by a collapsing economy and a real estate market no longer able to sustain itself as a result.

However, as a sign of Vegas’ continued revival, the mixed-use condo space on Russell Road west of the Beltway – re-dubbed The Gramercy – was recently sold to developers The Koll Company and Estein USA by WGH Partners and The Krausz Cos., who in turn originally purchased the property from Edelstein in 2013 and completed its construction. Koll/Estein paid a cool $61.75 million for The Gramercy, which is a bump-up in price from the $20 million Edelstein let it go for in 2013; part of the reason WGH Partners sold the property off this April was due to the difficulty in leasing out the retail space, although the vast majority of the office space has been rented.

Representatives of Koll/Estein have stated a number of reasons for their purchase of The Gramercy; among them the fact that they are happy with the amount of square footage that has currently been leased, and envision a continued influx of tenants – and, as a result, increased revenue – as the property sits amid a part of the southwest Las Vegas community, an area that is experiencing perhaps the largest spurt of rapid economic and population growth in Southern Nevada at the moment. As a result, investors across the board have been snapping up whatever properties in the region they can get their hands on.

The Gramercy consists of two apartment buildings with approximately 600 living units and two office buildings with retail space at ground-level; an additional condominium tower, started in 2008 but never completed, was imploded and destroyed in 2015. Plans currently exist for additional office space to possibly be built on the property.

Several high-profile retailers are currently taking up residence at The Gramercy, although precious few represent national chains, something the previous landlords purposely sought to avoid according to reports. Among the higher-profile retail tenants calling The Gramercy home are the DW Bistro, a 4,512-square-foot eatery described as “Jamaican Meets New Mexican Cuisine” and featuring a full bar; Pinches Tacos, a Mexican restaurant; The Cuppa Coffee Bar; exercise studio Raw Fitness; and, eventually, Kitchen Table Squared, the new second location of Henderson’s popular Kitchen Table upscale restaurant, slated to feature an “upscale dining room, formal pastry and coffee bar and an oyster bar.”

With the new buyers putting real money into a property that was considered almost dead and buried just a few short years ago, The Gramercy – along with record-breaking home and apartment prices and sales in the region as more and more people seeking employment opportunities move in – represents the real estate and economic boom that Southern Nevada in general, and Las Vegas in particular, is currently experiencing after several years of financial drought, and points to a bright and prosperous future as this trend is cultivated and grown.

LAS VEGAS, NV – As if Las Vegas’ economy – and as a by-product, it’s real estate market – wasn’t beefing up its already impressive profile, Amazon.com, the nation’s largest online retailer, is currently in the process of constructing a massive warehouse in North Las Vegas to be used as a regional fulfillment center for the countless orders placed via their website on a daily basis.

Amazon’s warehouse, one of over 75 Amazon currently has across the country, will ring in at an impressive 800,000 square feet, and is being erected near Lamb Boulevard and Tropical Parkway. The facility is expected to open its doors for business in summer 2017, and with the opening of said doors will come a immediate boon to the local economy in the form of 1,000 new jobs, many of which will man the warehouse stocking items and packing orders that are destined for numerous locations throughout the Southwest.

As an enticement for Amazon to set up shop in North Las Vegas, Nevada Governor Brian Sandoval has offered up $1.8 million in tax savings in the form of tax abatement’s for the online retailer. According to Amazon’s latest annual report to the Securities and Exchange Commission, the company saw net income of $2.37 billion for the year ended Dec. 31, 2016.

Governor Sandoval noted in a statement that Nevada has been attracting numerous big-name companies to its corporate landscape; in addition to Amazon, The Honest Company, CML Media Corp Sutherland Global Services, TH Foods and Zazzle are expected to set up shop in the area, not to mention the impending re-location of the Oakland Raiders NFL team to Las Vegas within the next 1-2 years. With this injection of fresh blood into the region, Sandoval said, is serving to turn Nevada in general and Las Vegas in particular into a destination not only for tourism, but business as well.

“That’s what provides the jobs…a variety of companies will spur growth in Nevada, including Amazon.com, the largest internet-based retailer in the world,” he said. “North Las Vegas is transforming…Nevada’s business-friendly atmosphere is not only helping existing Nevada companies expand, but also bringing industry-leading companies to our state.”

There is a bankruptcy bill that is being pushed by Democrats that would give Judges the power to dictate mortgage terms.

If this bill were to pass, a homeowner could file bankruptcy and the Judge could change the terms of his primary residence mortgage to make it more affordable for the homeowner so one they can afford their monthly mortgage payment and two to bring the mortgage down to market value.

The Mortgage Bankers Association, American Bankers Association and the U.S. Chamber of Commerce oppose this bill and have spent millions to try and prevent it from being passed.  According to the chief lobbyist for the Mortgage Bankers Association, Steve O’Connor, said “new homebuyers would end up paying higher interest and bigger down payments if lenders are saddled with the risk that a judge could change mortgage terms.”  Why would homebuyers end up paying a higher down payment and interest rate?  The lending guidelines are very stringent now and you can’t buy a home anymore without at least 3.5% down so I would imagine that the default rate on these new home loans would be very small?  So the risk for Lenders and Banks have dropped considerably compared to loans they gave out back in 2003-2006.

I can see why the Mortgage Bankers Association and American Bankers Association would want to prevent this bill from passing because it certainly would harm the bottom line for lenders and investors holding mortgages or would it?  How much harm would it really cause Lenders and Banks with the Government bailout?  Bank of America just received a 2nd bailout of $20 billion dollars!  Banks appear to be using their bailout money to acquire other banks so I am not too concerned with them complaining that they would lose money if this bill passes.  What I am concerned with is Lenders and Banks requiring homebuyers to come in with a higher down payment and increases in interest rates.

We need a solution to the foreclosure mess since Banks and Lenders can’t get short sales or loan modifications approved in a timely manner.  The passing of this bill would help streamline the process and allow homeowners to keep their homes by bring their mortgage down to market value and giving them a payment they can afford.  This will prevent more homes from going into foreclosure which helps keep inventory levels from increasing and should help prices begin to level out.  When there is confidence again in the real estate market, it will begin to spill over to other industries which will help lead us out of the recession our Country is facing.

Oil executives were summoned to the Senate today to discuss the rise in prices of oil.  The Oil Executives defended prices stating that prices are set based on supply and demand.  They stated that supply was tight and demand is up across the world causing prices to increase.

The Senate’s stance was that Americans were hurting in the pocket book as the average cost to fill up the gas tank is $60 and the big Oil Companies are generating record profits, $36 billion in just the first quarter of this year.

It’s ridiculous that these Oil Companies are generating these type of profits when the average person can barely afford to cover their monthly expenses as the price of gas, food and utilities keep rising!  When will the government step in and demand the Oil Companies make changes to drive down the cost of gas?  When will the government force Saudi Arabia to produce more oil?  Something needs to change and quickly, we just cannot afford to keep paying these prices for gasoline!