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Stumbledowntown las vegas:
Can’t afford a glitzy condo unit?
Many in workforce can’t, so developer has plans to build housing for them
Sam Cherry, showing a unit in SoHo Lofts in 2007, has a new idea for downtown Las Vegas housing. He’s proposed two apartment buildings with units that would be attainable for renters who don’t qualify for government assistance, but who cannot afford to purchase costly condo units.
Thursday, March 5, 2009 | 2 a.m.
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- Business group set to take on Culinary (2-23-2009)
- Condos struggle in icy market (2-6-2009)
- Changes downtown coming from on high (8-27-2007)
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After downtown developer Sam Cherry finished building his two high-priced Las Vegas condo towers, SoHo Lofts and Newport Lofts, a couple of the buildings’ doormen asked him to consider building “a nice place downtown where we can afford to live.”
Cherry took their request to heart. Filling what appears to be a gap in the local housing market, he has plans to develop two downtown apartment buildings to provide workforce housing and to appeal to young professionals and artists who live downtown.
Last week the Las Vegas Planning Commission gave its approval for Cherry to build two four-story, 60-unit buildings. One is to be on the southwest corner of Casino Center Boulevard and Colorado Avenue, the other on the southeast corner of 11th Street and Stewart Avenue.
The apartments, which will boast corrugated metal exteriors and several “green” features including solar panels, are the first planned for downtown in some time, officials and residents say.
And the timing could work well — assuming the economy rebounds before too long. Cherry is hoping to break ground by the end of the year, and then to open by late 2010, when several city redevelopment projects are expected to be gaining momentum.
“Our goal is to have people live in downtown, work in downtown and walk to work,” said Cherry, the developer behind the first upscale condos downtown a few years ago.
He started a condo-building trend — one that’s been torpedoed by the economic plunge locally and nationally.
The condo market across the valley, including downtown, is hurting badly. As of a few months ago, buyers at four of the five condo projects recently completed or under construction in Las Vegas — Newport Lofts, Juhl, Allure and Streamline Tower — were finding it difficult, if not impossible, to get financing to close on their units.
Cherry said he didn’t expect another high-rise condo tower to be built anywhere in the valley for the foreseeable future.
On the other hand, there appear to be few if any apartments downtown like the ones Cherry plans to build. And with the recession deepening, how better to fill the need for housing downtown — especially for those who don’t need government assistance but can’t afford high-rise living?
“People really do have a desire to live downtown. What Cherry’s doing seems like the right move,” said Michael Cornthwaite, owner of the Downtown Cocktail Room.
“We went from flophouse motels and government-subsidized housing to half-million-dollar condos — with nothing in between,” Cornthwaite said. “We need these kinds of appealing, reasonably priced apartments.”
Doug Rankin, planning manager of the city’s Planning and Development Department, agreed that there’s been a need for rentals downtown, especially for those open to everyone but with modest leases.
“It appears the timing of this project might be good,” Rankin said. “Sam Cherry may be on the forefront of another new trend.”
L’Octaine Apartments, near SoHo Lofts downtown, received positive reviews after opening in 2005, and the 51-unit complex maintains a waiting list for renters. But those apartments are designated as Section 42 “affordable housing” units, for people whose incomes are below certain levels.
For example, according to Sean Mattingly of the Tom Hom Group, which developed L’Octaine, three people living in a one-bedroom apartment cannot have a combined income of more than $34,500.
Cherry said he hopes to qualify for a different type of federal Housing and Urban Development Department loan that does not disqualify residents who make too much money. Instead, he said, such a loan is designed for developers who build residences within urban redevelopment areas.
Cherry said the apartments he proposes will be about 500 square feet each and rent for market rate, likely $700 to $900 per month. Plans still need City Council approval, and the arduous process for HUD financing may take several more months.
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Jeez, we don't have enough vacant buildings in this city that we have to build yet some more? And I'm sorry, but the moment the economy gets better, these "affordable" new apartment rents are going to get jacked very high, and their tenants will be out on the streets in no time. This is Vegas, remember?
This guy is right on. Are we supposed to just roll over and die? I hope it works for him and for Vegas.
We just don't learn our lessons, do we?
Sure, build more housing units. That's a GREAT idea!
Station Casinos did this p.r. stunt a few months ago.
What it REALLY says is this:
We can afford to build something, that gives US an asset, that we can sell down the road, but we can't afford to just pay our workers an extra few dollars per hour so they can afford to buy a condo because THAT is a cost.
Same thing with Stephens Media ( owners of the Review-Journal ) when they claim poverty and end 401K matching to their employees to "cut costs", yet they were in Austin a few days later looking to buy a newspaper company there.
Is every "reporter" in this town too gutless to actually ASK a question anymore or is it all "cut and paste" from press releases now?
LOL! A 500 SF apartment is slightly bigger than a two car garage. It's not enough space for more than one person -- two if the people like each other.
Who wants to live downtown anyway?
As apartments where the idea is you can walk to work it's a good idea. Apartments aren't usually intended to be permenant dwellings, they are intended to be starters for people pulling themselves up from the bootstraps.
That being said, he needs to keep the rent/income at less than 30% if the person has a car, 40% if they don't and make sure there are other services available like grocery stores.The people he says he's targeting make $20K-$30K a year ($9.80-$14.80 an hour).doing the math he would have to rent these out from $500-$900 a month...
Downtown would great if it weren't for all the homeless bums and deviants around. Who the hell wants to deal with that nonsense on the walk to work each day? I'll give them this though, at least they seem affordable for the moment.
A lot of people who teach at unlv, younger single people making from the mid 40s to, let's say, the mid 70s, would love places like this....
Have you looked at the average salaries at unlv lately, drollo? Salary range for faculty far exceeds the mid 40s to mid 70s.
Thank you, Sam Cherry, for having the vision to see what so many others refuse to see. Downtown Las Vegas is headed the same place other urban areas are headed, which is gentrification, diversification and prosperity.
It takes vision to change the world, and guts to execute that vision. Cheers.
Good to see the city gave approval for these new apartments.
I was disappointed when DT became so gung ho pursuing luxury housing developments. If there is a place in LV that seems suited for a mix of middle range and some higher end places, seemed like DT would be ideal.
While many prefer the suburbs (and larger homes,) there are those who want a more urban environment and are happy with smaller living areas. To each their own. Nice to see Cherry is willing to build something for the latter group.
Just hope he will let residents have a cat. (Hint.)