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February 24, 2017

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realtybites

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Total Comments: 10 (view all)

Going forward with Vdara as a condo-hotel is a mistake and is being influenced by short-term thinking. Look at what has happened at MGM Mirage's other condo-hotel concept -- it has been a disaster. CityCenter's better location or amenities will not change the fact that the condo-hotel concept in Vegas has been a failure.

Yes it's possible that MGM Mirage will close a few units at Vdara, but then what. There are no other financing options to buyers that don't qualify for their program. If MGM Mirage wants to close more Vdara sales, they would need to adjust prices which will weaken values of other CityCenter units. The 18-month restriction of listing units for resale with not stop foreclosure units from eventually hitting the market. Because of the listing restriction, foreclosures would be the only comparables which will further weaken property values of units at Veer or Mandarin Oriental.

The solution is simple: contract holders at Vdara should be given the option to transfer their deposits to purchase in Veer or Mandarin Oriental or otherwise refund their deposits in full. The pure residential condo offerings at CityCenter (not condo-hotel) have a very good chance of holding their property value and eventually appreciating nicely, but with Vdara creating a downward pressure on pricing, this will negatively affect all values at CityCenter and other strip projects.

It's clear that the condo-hotel concept was brought to Las Vegas by short term thinking on the behalf of the developer and will end up being a long term liability and ultimately a huge detriment to MGM Mirage.

Those executives that don't see this as the right thing to do, don't fully understand the condo-hotel concept and it's affect on cash flow and operations, as well as the long term negative consequence to CityCenter property values.

(Suggest removal) 2/6/10 at 3:01 a.m.

Going forward with Vdara as a condo-hotel is a mistake and is being influenced by short-term thinking. Look at what has happened at MGM Mirage's other condo-hotel concept -- it has been a disaster. CityCenter's better location or amenities will not change the fact that the condo-hotel concept in Vegas has been a failure.

Yes it's possible that MGM Mirage will close a few units at Vdara, but then what. There are no other financing options to buyers that don't qualify for their program. If MGM Mirage wants to close more Vdara sales, they would need to adjust prices which will weaken values of other CityCenter units. The 18-month restriction of listing units for resale with not stop foreclosure units from eventually hitting the market. Because of the listing restriction, foreclosures would be the only comparables which will further weaken property values of units at Veer or Mandarin Oriental.

The solution is simple: contract holders at Vdara should be given the option to transfer their deposits to purchase in Veer or Mandarin Oriental or otherwise refund their deposits in full. The pure residential condo offerings at CityCenter (not condo-hotel) have a very good chance of holding their property value and eventually appreciating nicely, but with Vdara creating a downward pressure on pricing, this will negatively affect all values at CityCenter and other strip projects.

It's clear that the condo-hotel concept was brought to Las Vegas by short term thinking on the behalf of the developer and will end up being a long term liability and ultimately a huge detriment to MGM Mirage.

Those executives that don't see this as the right thing to do, don't fully understand the condo-hotel concept and it's affect on cash flow and operations, as well as the long term negative consequence to CityCenter property values.

(Suggest removal) 12/9/09 at 12:42 p.m.

The only option that would make sense for Vdara at CityCenter is if its contract holders are given the option to transfer their deposits to purchase in Veer or Mandarin Oriental or otherwise refund their deposits in full. The reality is that it is nearly impossible to obtain financing on a condo-hotel unit. Those that end up closing will be very few. Price adjustments will spiral downward in an attempt to close more sales penalizing those that honor their contracts and further weakening property values of other units at City Center and other strip properties.

And from MGM Mirage's perspective, running a condo-hotel will prove to be a loss in the long run and is not a viable option for a successfully operating luxury hotel.

The condo-hotel concept was brought to Las Vegas by short term thinking on the behalf of the developer and will end up being a long term liability and ultimately a huge detriment to MGM Mirage.

Those executives that don't see this as the right thing to do, don't fully understand the condo-hotel concept and it's affect on cash flow and operations, as well as the long term negative consequence to CityCenter property values.

(Suggest removal) 10/5/09 at 3:36 p.m.

The only option that would make sense for Vdara at CityCenter is if its contract holders are given the option to transfer their deposits to purchase in Veer or Mandarin Oriental or otherwise refund their deposits in full. The reality is that it is nearly impossible to obtain financing on a condo-hotel unit. Those that end up closing will be very few. Price adjustments will spiral downward in an attempt to close more sales penalizing those that honor their contracts and further weakening property values of other units at City Center and other strip properties.

And from MGM Mirage's perspective, running a condo-hotel will prove to be a loss in the long run and is not a viable option for a successfully operating luxury hotel.

The condo-hotel concept was brought to Las Vegas by short term thinking on the behalf of the developer and will end up being a long term liability and ultimately a huge detriment to MGM Mirage.

Those executives that don't see this as the right thing to do, don't fully understand the condo-hotel concept and it's affect on cash flow and operations, as well as the long term negative consequence to CityCenter property values.

(Suggest removal) 9/17/09 at 9:29 a.m.

The only option that would make sense for Vdara at CityCenter is if its contract holders are given the option to transfer their deposits to purchase in Veer or Mandarin Oriental or otherwise refund their deposits in full. The reality is that it is nearly impossible to obtain financing on a condo-hotel unit. Those that end up closing will be very few. Price adjustments will spiral downward in an attempt to close more sales penalizing those that honor their contracts and further weakening property values of other units at City Center and other strip properties.

And from MGM Mirage's perspective, running a condo-hotel will prove to be a loss in the long run and is not a viable option for a successfully operating luxury hotel.

The condo-hotel concept was brought to Las Vegas by short term thinking on the behalf of the developer and will end up being a long term liability and ultimately a huge detriment to MGM Mirage.

Those executives that don't see this as the right thing to do, don't fully understand the condo-hotel concept and it's affect on cash flow and operations, as well as the long term negative consequence to CityCenter property values.

(Suggest removal) 9/14/09 at 8:31 a.m.

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