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Land plans signal growth in Summerlin
Monday, July 5, 2010 | 2 a.m.
The prospects
There is plenty of Summerlin land left for development. The 22,500-acre community has 8,900 undeveloped acres and plans to market and sell 7,000 net acres, owner General Growth has said in court papers.The proposed deal
General Growth plans to sell hundreds of acres to homebuilders familiar with Summerlin and more land to an unnamed high-tech manufacturer.
Sun Archives
The owner of Summerlin has disclosed plans to sell hundreds of lots to homebuilders in a sign that the residential building industry is preparing for growth in the master-planned community.
In papers filed last week in Bankruptcy Court in New York, General Growth Properties Inc. said it also anticipates selling Summerlin land to a high-tech manufacturer that would bring thousands of jobs to the region.
General Growth and Summerlin officials didn’t name the manufacturer, but it appeared to be the billionaire founder and CEO of Red Digital Camera. Last year he won Clark County zoning changes and waivers to plan a high-end digital movie camera plant, a sound studio, and homes for himself, actors and others in the movie industry in Summerlin “Village 16A” on Hualapai Way between Warm Springs and Sunset roads.
In a third proposed deal, General Growth would sell a parcel in Summerlin Centre. "Originally designed for condominium development, (the land) is a 7.21-acre parcel slated for development into an in-line retail strip center supporting luxury automotive dealerships with the possibility of two restaurants on the property," General Growth said in its court filing.
Tom Warden, senior vice president of community and government relations for a General Growth subsidiary, The Howard Hughes Corp., developer of Summerlin, said the commercial land sales haven’t been finalized and the bankruptcy filing was intended to clear the way for those sales, should they occur.
Big land sales in Summerlin — like the rest of Las Vegas — have virtually ground to a halt during the recession, and the homebuilding deals are the first significant land sales proposed by Summerlin since General Growth filed for bankruptcy protection last year.
Numbers compiled by Las Vegas analysis firm SalesTraq show how severely the local homebuilding industry has been hurt by the recession. Builders took out 30,149 permits in 2005 in the area, 20,999 in 2006, 12,836 in 2007, 5,551 in 2008, 3,776 in 2009 and this year through May have been pulling about 465 per month.
The time is right for Summerlin to resume development, Kevin Orrock, Summerlin’s top executive, said in a court declaration.
“After thorough analysis of business considerations, my colleagues and I believe that it is presently the appropriate time to continue the development of the Summerlin area by engaging in a series of sales of undeveloped property to capable builders,” Orrock said.
“We’re excited about it,” Warden said in an interview Friday. “It’s a positive turn for development in Summerlin.”
The bankruptcy court filing said the land is in the Amado neighborhood of the Mesa Village in the southern portion of Summerlin and is under contract with Richmond American Homes and Pulte Homes, each of which is experienced in building in Summerlin and complying with its design plans.
The neighborhood is expected to contain 503 finished lots, which are being sold to the two homebuilders for $37.9 million.
Land sales in Summerlin will be of special interest to the heirs of Howard Hughes, who claim a 50 percent ownership in its undeveloped land. General Growth last week filed court papers saying that since it’s in bankruptcy court proceedings, payments under a 1996 “contingent stock agreement” to the Hughes heirs should be subordinated to the claims of unsecured creditors.
There is plenty of Summerlin land left for development. The 22,500-acre community has 8,900 undeveloped acres and plans to market and sell 7,000 net acres, General Growth has said in court papers. The community is home to 100,000 people living in about 40,000 residences.
CORRECTION: This story originally misstated details about 7.21 acres in Summerlin Centre. The land originally was planned for condominium development, but the plan now calls for a retail center with luxury automotive dealerships and possibly two restaurants. | (July 5, 2010)
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just as the second stage of the depression takes hold, stimulus is stopping, tax credits stopped, belt tightening around the world, china is about to collapse in the same way we have, guess what builders are going to start flooding market with more empty properties... lol lol
What about the vacant land with steel framing on 215 and Charleston. We do not need more houses built. I live in Summerlin and there are enough houses now vacant and ready to be sold.
Yeah I'd rather see the mall resume construction than more homes built.
Yeah, I agree. Finish the mall.
I agree with Journey. Something positive for a change!
When the land belongs to you, then you'll get to decide what gets built on it and when. Until then, it's all "whoosh!" as the hot air travels over the Internet to these comments!
Selling the land is one thing but having more houses built is only going to prolong whatever recovery that they claim is happening.
The market is not ready for new homes. Unemployement is high in Clark County. Without jobs, or job growth, any new housing project is sure to fail. You will lend the money to the builders? And who will by the houses? The same people that have lost their homes will be needed to drive any new housing market. There is not an new wave of home buyers in Nevada to fuel a new housing market. Not enough jobs, not enough income, plus the banks have strict lending requirments that current job holder cannot qualify.
Am I missing something? With all the unemployment.The enormous amount of foreclosed homes the banks are "still" holding.The amount of housing empty and neither not sold or not rented,why not finish projects started and not completed.
Actually there are people that weren't foolish enough to buy a home during the building boom. They understood how overpriced homes were during that period and that you can't buy a home and flip it for a profit. The fools that purchased homes during that time also weren't smart enough to realize or care that a home is a major long term investment the requires money and effort to maintain a home properly. This is one reason people like myself (that are in the market for a home) are tired of looking at foreclosures, short sales, reo's. I would rather buy a new home that is free of major and costly issues due to neglect, lazziness, and ignorance from a majority of the valley's homeowners, that should just live in an apartment because they aren't ready for the realities or responsibilities of homeownership. Please quit crying about how much you overpaid for your home or that you weren't smart enough to know if you could afford your mortgage or understand your loan. Last time I checked only adults were allowed to buy a home, so quit complaining, pay the loans, that you signed, promising to pay, and quit looking for a handout. Lastly quit complaining about a free market, when there is a demand for new homes. Those of us, that are responsible want new homes, not your S#!thole of a house!!!
They are selling the land to home builders. It does not mean that homes will be built right away. If the builders can get the land for the right price, they should buy now. Just because they buy it doesn't mean the have to build it right away.
As far as the rest goes, good for them. Las Vegas desperately needs to diversify our economy. Moving into the manufacturing industry would do great things for our city. It provides a lot of blue collar jobs, which are what's needed with our work force. People who were previously in the construction industry can easily transition to a manufacturing job in a factory.
I agree with Informant23. Sales of residential lot inventory, by large bankrupt land developer, is a standard, fast and easy to take in much needed cash to pay operating expenses during a Chapter 11 bankruptcy. It doesn't mean anybody is going to start mass building "spec" houses any time in the forseeable future.
The solvent national homebuilders are stockpiling lots they can buy on the cheap, in the hopes that when the market turns around they will be well positioned to market houses without waiting to go through the planning process.
bape702:
I lived next door to an Indian techno geek, and his wife, in SW Las Vegas for 5 years. They didn't stink and were very kind to my family. He lost his job in LV, rented out his house, and moved to Silicon Valley or Redmond, WA, I forget which. My daughter lives in that house now, and we would be happy to have that family back as her neighbors, because we know we could rely on them, rather than some anonymous tenants.
I agree with real_lv_local 100%
GOD I LOVE THE SELF RIGHTEOUS PEOPLE HERE
And you know who you are.
peace out
God does love the righteous. Sounds like the last post was one of those fools, that has contributed to the housing problems in Las Vegas, and can't accept responsibility for their actions. The truth hurts!
And you know who you are.
peace out
Who wants to live way the hell out there? Crime, long commute? No thanks.