Does the Demand Meet the Supply of Luxurious Las Vegas Apartment Complexes?

artist rendering of south beach resort las vegas

Artist rendering of South Beach Resort in Las Vegas, NV – http://southbeachlv.com/

All the luxuries are there; and volleyball courts, opulent pool sides, and cabanas even a dog spa. South Beach, a new apartment complex soon to be completed in southwest Las Vegas is fitted with outdoor movie theaters, fire pits, and sports facilities.

The name makes us think of sunsets over the beach as party people hop from nightclub to nightclub; the Miami Beach ‘South Beach’. The images are gone when you see the apartments in question are surrounded by suburban tract divisions and office parks a good 2,500 miles from South Florida.

South Beach’s Website alludes to the dream of a favorite getaway and a luxurious lifestyle carefully prepared for you. South Beach is making use of a 10-acre patch of land at Russell Rd. and the 215 Beltway, which was owned by a less than scrupulous realtor until he was imprisoned for his misdeeds.

The whole thing, yet another example of the apartment construction surge throughout Las Vegas, is raising some question as to the need for all this development. The developers, in the meantime, are charging sky-high prices for these luxurious apartments that have all the amenities, including game rooms, dog parks and pools complete with cabanas.

3,000 new apartments hit the markets across the Valley last year with another 4,500 are scheduled for opening this year, according to Spencer Bailiff, Group Broker for CBRE.

Southwest Las Vegas

Southwest Vegas is hosting an unprecedented wave of commercial and residential construction greater than anywhere else in the valley. Some of the rental projects currently being completed are:

South Beach

This is shaping to be a vast realm of grassy courtyards and fashionable poolside additions: people laughing and smiling and maybe a volleyball match in progress.

Elysian West

West of the Beltway heading toward Tropicana Avenue, Elysian West will be an estate full of ball courts and a 1-acre dog park complete with an obstacle course. Plans include an 11,000 sq. ft. clubhouse which will have game rooms, arcades, and a tanning salon.

EVO

The Evo Apartments project boasts a rooftop pool and an indoor basketball court, there is also yoga classes, saunas, and steam rooms, at least that’s what the website says.

Brokers are very excited about the convenient location of southwest Las Vegas; it is not far from McCarran International Airport, the Strip, Summerlin and Hospitals. Plus when the apartment builders saw the area they were very optimistic, so up went the condos in Las Vegas.

“But why does a Wendy’s always seem to open in front of a McDonald’s? This is the kind of mentality at work in southwest Vegas” says Carl Sims, broker for Cushman & Wakefield/Commerce.

The new complexes have been filling up with residents, nevertheless, with the flood of valley projects surging higher and higher the vacancy rates could grow larger and rent prices grind to a halt, which will be great for the tenants who will have lower rates, but the investors will be at a loss for sure.

Many people are wondering how deep the “rent wells” go; Bailiff was quick to point out. “I think there may be too many cooks making too many cakes in this kitchen” he said.

Neither the planned rental sizes nor the specifics to the dimensions of the apartments appear on the South Beach website, but there is a notice that the opening is scheduled for this fall.

There have been many plans made for this site in the past as well. In 2002, plans were laid out for a 104 sq.ft. shopping center, according to county records. Then Jamal El Jwaidi purchased the site in 2006.

El Jwaidi made some plans to construct PG Plaza, which was to have vast office space, luxury condos, movie theaters and boutiques; it was to be modeled after the Beverly Hills venue, Rodeo Drive. But despite the intricate plans, the project mysteriously died on the drawing board

According to the city reports, El Jwaidi filed for bankruptcy three years later. He was arrested in 2010, the subject of investigation for massive real estate scams which cost dozens of victims their small fortunes.

Prison records report that El Jwaidi is now completing his sentence in a minimum security correctional facility in North Nevada.

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