Homebuilders’ land purchases in Summerlin fell in recent months, company says

By Eli Segall Las Vegas Review-Journal

7 years ago

Kevin T. Orrock, Summerlin President of the Howard Hughes Corporation, speaks before the ceremonial groundbreaking of Aristocrat Technologies’ new office complex in Summerlin, Friday, June 23, 2017. (Gabriella Angotti-Jones/Las Vegas Review-Journal) @gabriellaangojo

Kevin Orrock, president, Summerlin, The Howard Hughes Corp. (Courtesy Howard Hughes Corp.

Heavy duty earth moving equipments at the site where Summerlin developer Howard Hughes Corp. has plans to build an office tower next to the new NHL practice rink in Summerlin on Tuesday, Dec. 20, 2016. (Bizuayehu Tesfaye/Las Vegas Review-Journal)@bizutesfaye

From left: Kevin T. Orrock, Summerlin President of the Howard Huges Corporation, Susan Brager, Clark County Commissioner, Matt Wilson, Managing Director of the Americas for Aristocrat, Governor Brian Sandoval, Mark Dunn, Executive Vice President and General Counsel for Aristocrat, at the ceremonial groundbreaking of Aristocrat Technologies’ new office complex in Summerlin, Friday, June 23, 2017. (Gabriella Angotti-Jones/Las Vegas Review-Journal) @gabriellaangojo

Homebuilders’ land purchases in Summerlin dipped in recent months amid rising prices.

Summerlin developer Howard Hughes Corp. reported Monday that it sold 51.8 acres of residential land in the three months ending June 30 in Las Vegas’ largest master-planned community, down 3.5 percent from the same period last year.

Sales proceeds, however, rose 5.2 percent to $28.9 million, as the average price per acre climbed 9.2 percent to $559,000.

Summerlin spans 22,500 acres along the western rim of the valley. It fetches some of the highest land prices in the valley and the most new-home sales among master-planned communities.

Overall, it had about 107,000 residents, or 5 percent of Clark County, at the end of last year.

Dallas-based Howard Hughes disclosed the land sales and prices in its second-quarter earnings report. The company, which also has properties in such states as Hawaii, Texas and New York, booked $3.1 million in net income for the quarter, down 55 percent year-over-year.

Also mentioned in the report:

— Buyers picked up 244 new homes in Summerlin in the second quarter, up 21.4 percent from the same period in 2016.

— Howard Hughes started construction in the second quarter of a 152,000-square-foot office building near its Downtown Summerlin open-air shopping center. The building will feature an adjacent 424-space parking structure.

The project has an estimated price of $48.3 million. Howard Hughes did not say who would occupy the building but noted that it’s seeking financing for the project and expects to finish construction by the end of the third quarter next year.

Shares of Howard Hughes gained 36 cents, or 0.29 percent, to close at $125.77.

Contact Eli Segall at esegall@reviewjournal.com or 702-383-0342. Follow @eli_segall on Twitter.