Sale of Vegas high-rise for $3.4 million is highest home sale this year — PHOTOS

GLVAR President Keith Lynam

Lee Medick of Luxe Estates & Lifestyles

The May 21 sale of No. 4505 at The Residences at Mandarin Oriental for $3.4 million or $1,234.10 per square foot is the Las Vegas Valley’s highest per-square-foot home sale so far this year, data show.

This sale raises a question: Is the valley’s high-rise market is on an uptick? Or is this sale a high-price blip on the sales chart?

Without a real estate crystal ball, we are left with sales reports, speculation and a casual observation: No. 4505’s sales price far surpasses the Greater Las Vegas Association of Realtors’ May statistics for high-rises, based on sales through the Multiple Listing Service.

“Our high-rise market is obviously getting stronger,” association President Keith Lynam said when reviewing May statistics that were released June 9.

“The median sales price of $345,000 for a high-rise unit in May is up dramatically from the May 2014 median sales price of $247,425 for a high-rise unit,” Lynam, who owns a high-rise residence, said. “This is a pretty healthy appreciation and it is holding from April 2015. This is key and shows a trend with the appreciation.”

“The high-rise units, especially in the mid- to lower-ranges of different buildings, are selling pretty quickly. I think that the market is, overall, pretty much experiencing the same. Certainly, those on the Strip are getting more per square foot than in other places, but I think that the overall appreciation has come up and a lot of that is due to the health of the economy. The housing market overall is more stabilized and the appreciation in the high-rise market is another sign.”

The May sales statistics show quite a difference — $930.30 – between the highest price per square foot and the median price per square foot. This range can be attributed to the varied types of high-rise units sold. Some are sold “unfinished” with only the home’s outer walls and cement floors, commonly called “gray shell”; some are built out with walls, flooring and cabinetry; and some come finished and furnished. Also, some are short sales and foreclosures.

“Gray shell versus unfurnished versus turnkey makes it difficult from a sales comparison prospective on paper,” said Lee Medick of Luxe Estates & Lifestyles, which is representing sellers in five high-rise properties. “However, educating the buyer on build-out costs versus custom finishes and furnishings will ultimately determine what value the buyer is willing to pay, and real estate agents rely heavily on appraisers to make the appropriate adjustments for price differentials.”

“Overall, the pricing of high-rises has taken a cautiously steady climb … primarily in the midpriced range units from 600-square-foot studio units to 1,000-square-foot, two-bedroom, two-bath units,” Medick said. “A completely different spin is occurring in the penthouse units. Builders quickly noticed that there was an influx of buyers when a unit was ‘designer ready’ and turnkey and noted they are willing to pay a premium price point for this convenience.”

“A noted $1,000-square-foot sale back in March and again a $1,234-square-foot sale in May confirmed that Las Vegas was back on their game, withstood the recession, and most importantly, has continued to prove that buyers who can afford luxury will pay for it. Only the very unique, one-of-a-kind penthouses will continue to break all records.”

Another high-rise sale that garnered media attention earlier this year was at One Queensridge Place.

“We had a record-setting sell at Queenridge in the first quarter of this year for $7.7 million, which at the time was the highest-price home sale of the year,” said Randy Char, senior vice president of marketing and sales for One Queensridge Place and president of Char Luxury Real Estate. “It was a ‘shell’ home, and by the time they are finished with the build-out and the design, it could reach $10 million which is really promising and speaks volumes for the market and the future of the market.”

“Sales are definitely robust and moving along. We’ve had in the ballpark of 16 or so sales this year at Queensridge, which is a pretty good pace considering that we only have one remaining developer-owned unit and the rest is resale activity. It seems like we are selling units across the board, but we seem to be getting more looks at our super high-end homes,” Char said. “This speaks to the confidence of the market that people are willing to pay that kind of money. It speaks to people seeing Las Vegas as a truly luxury destination, as a place to have a substantial home and a lifestyle,” Char said, adding that the 15,670-square-foot Crown Penthouse on One Queensridge Place’s 18th-floor residence is for sale for $9.9 million. The two towers have two other Crown penthouses.

Another “gray shell” listing that has raised eyebrows is a 12,940-square-foot penthouse at The Martin that is available for $4,995,000 and listed by Luxury Estates International.

Shari Sanderson and her business partner Michelle Manley of Award Realty, who have sold more than 160 high-rise residences in CityCenter, agree that buyer interest has increased.

“We have seen buyers coming in flock, and a lot of the clients are coming from California, New York and other states because of our tax structure,” Sanderson said. “If you look at the whole city, the whole city is popping. Different high-rise properties are seeing increases in sales prices, although there are properties that have not yet peaked, like in the northern part of the Strip. The whole north Strip is quietly under construction. We’ve had a complete turnaround in Las Vegas, very quietly this time,” Sanderson said, citing multiple construction projects such as the MGM Resorts International-Anschutz Entertainment Group arena, Resorts World and possible projects near Trump International and SLS.

“A lot of confidence is in the city. … The market dropped 79 percent, and it has come back about 30 percent,” Sanderson said. “For example, look at the Mandarin Oriental, where I have sold many, many units with Michelle Manley. When we started focusing there two years ago, only 35 percent of that building was sold. Now there are only five or six units left. That is an accomplishment, but we didn’t do it. It was the economy coming back.

“In my personal opinion, during the irrational exuberance when our prices skyrocketed, I think that our prices were still low when compared to California and other areas,” Sanderson said. “So now, even if we go back to where we were before, we are still lower than other places. I think the potential is huge.

“The confidence in Las Vegas is back big time. Las Vegas is popping again. But this time, it is rational exuberance and last time it was irrational exuberance.”