Queensridge developer disputes report, says loan is solid

By Buck Wargo

Friday, April 24, 2009 | 2 a.m.

The developer of One Queensridge Place disputed a report it has had trouble with its loan payments and said the luxury condominiums remain in good financial health.

An In Business Las Vegas story last week about problems in commercial real estate said New York-based Real Capital Analytics listed One Queensridge Place as one of several Las Vegas projects with troubled loans. In the report, the company said payments in 2008 for a $100 million loan had been late to Credit Suisse.

Frank Pankratz, president of Executive Home Builders, the developer of One Queensridge Place, said April 21 that’s not the case and the only issue he can think of was that negotiations with lenders were stagnant at one time.

“We never had a problem with our loan,” Pankratz said. “The loan is stable, and we have excellent relations with our lender. They are a strong equity partner.”

Guy Penini, chief financial officer, echoed that. He added “maybe some technical issues came up last year” with the loan, but he did not want to elaborate.

“Nothing is going on,” Penini said. “The loan is stable.”

The development in Summerlin sold 80 percent of its 219 units, but about 15 percent of the sales were canceled, Pankratz said. One Queensridge kept the 10 percent to 15 percent deposits in those cases, which helped pay debt, he said.

The developer has sold only six condominiums in the past six months due to the recession. But in an effort to spur sales, Pankratz said the next 10 units will be sold for a 25 percent to 50 percent discount.

The regular prices start at $900,000 for a 2,000-square-foot unit and surpass $20 million for 17,000 square feet, he said.

There has been interest because there is nothing else like it in the market with its “custom homes in the sky,” Pankratz said.

“People are cautious right now and they are weighing their buying decisions carefully,” Pankratz said.

For those who are having trouble securing financing, Pankratz said they are willing to help those people.

As for its mixed-used development across the street, Pankratz said Tivoli Village remains under construction.

The pace of construction was slowed last year because many tenants said they would not be able to occupy the space until 2010, Pankratz said.