Summerlin developer’s new projects to cost more than $200M
Summerlin developer Howard Hughes Corp. has put a price tag on its two newest projects in Las Vegas: more than $200 million.
Hughes Corp. said Wednesday that its upscale 10-story office building next to Las Vegas Ballpark will cost an estimated $120.4 million to develop, and that the 295-unit second phase of its luxury Tanager apartment complex nearby will cost $81.6 million.
The Texas-based company, which broke ground a few months ago on the projects located off Sahara Avenue and the 215 Beltway, across from its open-air Downtown Summerlin mall, disclosed the dollar amounts in its quarterly earnings report.
The developer did not announce the costs when it unveiled project plans in January or when it announced in June that it broke ground on the two projects.
Hughes Corp. has spent hundreds of millions of dollars building out Summerlin’s commercial core and still owns plenty of land there for future projects, though its newest ventures come at a mixed time for Las Vegas’ commercial real estate market.
Many people have been working from home since the pandemic hit, sparking discussions about how much office space companies really need. Southern Nevada’s apartment sector has seen higher rents, tighter vacancies, and more construction but also faced plenty of questions about evictions amid government-mandated freezes that keep ending and restarting.
Hughes Corp. expects to finish the new office building, called 1700 Pavilion, next year, and the apartment project, Tanager Echo, in 2023, the developer said in June.
The company’s Las Vegas regional president, Kevin Orrock, said at the time that he’s always believed people will want to return to their offices and that interest from prospective tenants in the new building was “really strong.”
He also said that Tanager, which opened in 2019 and has 267 units, was nearly fully leased.
Hughes Corp. sells land to homebuilders in Summerlin, which spans 22,500 acres along the valley’s western rim, boasts more than 100,000 residents, and commands some of the highest home and land prices in Southern Nevada.
As of last year, Hughes Corp. had also developed more than $640 million worth of projects in the heart of Las Vegas’ largest master-planned community, securities filings showed, bringing retail shops, office buildings, apartments and baseball.
It built the 10,000-fan-capacity ballpark and owns the minor league team that plays there, the Las Vegas Aviators. It also developed a six-story office building near the stadium and the neighboring 106-acre outdoor mall.
Contact Eli Segall at esegall@reviewjournal.com or 702-383-0342. Follow @eli_segall on Twitter.