American Nevada positioning itself for substantial growth

Jennifer Shubinski

Monday, March 1, 2004 | 11:11 a.m.

American Nevada Company, developer of master-planned communities Green Valley, Green Valley Ranch and Aliante, said it plans to aggressively expand throughout the Las Vegas Valley and hired the former chief executive of a big Henderson developer to assist with its growth.

American Nevada hired Dan Stewart, formerly with Basic Management Inc. and its sister company The LandWell Co.

Basic/Landwell is one of the largest developers in the state with a portfolio of 5.5 million square feet of industrial and other space in the valley.

The planned expansion of American Nevada's commercial portfolio and continued focus of purchasing land through Bureau of Land Management auctions for future development is to "ensure the long-term viability of American Nevada Company as one of the most recognized and respected real estate developers in Southern Nevada," John Kilduff, company president, said.

The Greenspun family, owner of the Las Vegas Sun, also owns American Nevada.

The company now holds a commercial portfolio of more than 2.1 million square feet and has more than 5 million additional square feet planned for development in office, retail, industrial, hotel, gaming and medical projects.

American Nevada has been active in the last year with projects such as the opening of Aliante, beginning construction on its town square-like, 268,660-square-foot Shops at Green Valley Ranch and the addition of more office space in Green Valley.

In 2003, American Nevada started construction on more than 340,000 square feet of office space, with much of the expansion in the Green Valley Corporate Center and Green Valley Corporate Center South office parks.

"We feel very bullish about the market," Kilduff said.

Ron S. McMenemy, chief executive of real estate brokerage NAI Horizon, said the move is a good sign for the market.

"My thoughts are that it's a good thing that a very solid and significant player is still wanting to continue to grow; that's a good sign overall," McMenemy said. "There are some folks when it comes to larger pieces of land, they've slowed down a little bit (because) it's getting too difficult."

McMenemy said American Nevada isn't the only company thinking long term.

"Other developers are strategically positioning themselves for the future," he said. "The smart folks are saying 'we will make adjustments for water (scarcity), work on improving the infrastructure and everything that goes along with it.' There's a lot of long term opportunities -- it is by no means over."

To help spur the expansion and the search for property and deals, American Nevada hired Stewart as vice president of development. Stewart has been with the company about a month, Kilduff said.

Kilduff said Stewart's experience in the local market will be a valuable asset to the company. Stewart was president and chief executive of Basic Management Inc. and The LandWell Co. from May 1994 to September 2003. Prior to that he was vice president and general manager of Bonanza Materials and Industrial Construction.

The LandWell Co. has been involved in projects such as the Black Mountain Industrial Center and other space such as the Valley Auto Mall.

LandWell is one of five wholly owned subsidiaries of Basic Management Inc. BMI is a privately owned holding company incorporated in 1952 to manage the common assets of industrial plants now known as Black Mountain Industrial Center.

Many people know Landwell because of its plan for a planned community that has remained on hold as its sister company, Basic Remediation Co., continues to work on plans to clean up contaminated soils and ground water on 2,400 acres in Henderson.

"Dan's entire career has been in real estate development and construction and he is very familiar with the Las Vegas Valley," Kilduff said.

In his newly created position, Stewart will be responsible for identifying, evaluating and completing transactions to expand American Nevada's commercial portfolio.

Dennis Smith, president of research firm Home Builders Research Inc., said Stewart's experience will be a benefit to American Nevada.

"He understands parts of the market better than others because he's been doing it for so long," Smith said. "There's no substitution for experience and he's got the experience, so it should help them."

American Nevada is looking to expand outside its current development areas -- Green Valley in Henderson and Aliante in North Las Vegas, Kilduff said. Kilduff said all areas of town will be looked at for future expansion and that areas along the Las Vegas Beltway are good possibilities for development.

"We have not eliminated any portion of the valley," he said. "You never know where the next corner is going to be."

Kilduff said the company will stay within the metropolitan area, and is not looking to expand to areas outside the valley, such as to Pahrump and Mesquite.

Land and the search for land are what fuels many development companies, McMenemy said.

"I think what they're saying between the lines is 'We need land' and land is the engine that feeds the factory, drives the car, land is the key," he said. "He who has the land leads in the market place."

In addition to finding properties for acquisition for development or joint venture opportunities, Stewart will do due diligence on land expected to come up for auction at future BLM auctions, including 1,600 acres in northwest Las Vegas and a 2,300-acre parcel in North Las Vegas.

"We are going to be very aggressive about this, that's why we're bringing Dan on full time," Kilduff said.

Smith said American Nevada's success at Aliante and the hiring of key people will help the company meet the growing demand for new development.

"I think it's pretty typical of any large developer, and we don't have that many in Vegas that have the pockets that are deep enough to buy big hunks of BLM land," Smith said.