Veer Towers, The Martin, Panorama Etc.

[Scott Miller]

Hi All,

I am curious to hear everyones thoughts on Veer Towers at City Center as well as Panorama and The Martin.

Here are my initial thoughts

1. Las Vegas is a world class destination- there are only so many apartments on the strip. AKA: LOCATION,LOCATION,LOCATION

2. With the Raiders coming to town, I think that these rentals will be very attractive to wealthy Raiders fans living in California and who want to fly into Vegas for all home games

3. After doing due diligence, these are not cash flowing trophies. HOWEVER, there is a finite amount of condominium product on the strip- which could in return provide upside in appreciation.

Please feel free to let me know your thoughts on the above. I look forward to hearing your thoughts.

[John P.]

I am a big VEGAS guy and I have looked at those towers. The cash flow is so bad. Only a few buildings are allowed for str. I don’t recall if veer is. Bigger question how much money would you need to make on 8 or 9 home games to make this a good investment? I suspect more than is possible. The raiders move to Vegas is great but it’s only 8 or 9 weekends. Plus a few concerts and events. It’s not 40 or 50 weekends. 

[Marty True]

I have intimate knowledge of Veer and they do not allow short-term rental and forget about getting a mortgage, they are over the 50% renters threshold and nobody is lending on Veer. Also, the already high HOA fees just got raised at the last board meeting. Nearly impossible to cash-flow at Veer.

@Scott Miller all your points have been the "sales pitch' by every realtor in town but it just isn't happening like they thought it would. Rents are pretty much maxed at market+ at all three of the towers you mentioned and with acquisition and holding costs, it's super hard to cash-flow. 

[Bill B.]

Why don’t doomsayers ever use their regular account? They always make a new one so they don’t wreck their main account. Or maybe just so they can make a feedback loop with a bunch of accounts?

[Kurt Brauner]

I would have to agree you are going to have a tough time cash flowing on those 3 high rise properties you have listed. All three of those properties require a minimum of a 6 month lease based on each properties CCR's. I could see the possibility of making these properties cash flow as a STR but unfortunately Clark County has banned all STR and all 3 properties are within the county.

HOA Monthly Fees & Average Rent (Based on Smallest Unit in Building currently listed - HOA are based per/sqft)

Veer $556/month. - $1950/month

Martin $678/month - $2200/month

Panorama $681/month - $1850/month

Also, as stated above, trying to get traditional financing on this type of asset is extremely difficult too secure. I would almost would almost venture to say with current lending turmoil it would almost be impossible.