When Southern Nevada's residential real estate market began to slide a while back, much of the ensuing talk was focused on the single-family house segment. At about the same time condominiums below the ultra luxury level were also having their troubles, yet for some reason they seldom generated cat-size headlines. Recently, though, that has changed.
Pinnacle Las Vegas is the latest one to become a discussion topic. The planned complex in western Las Vegas was to have two 36-story towers containing 1,100 condo-hotel units, several restaurants and shops, a fitness center and a spa and a large wet deck. The project's developers were last month served a class action lawsuit on behalf of upset buyers who were under the impression they'd be moving in by August, when in fact no ground has been broken yet.
The lawsuit claims breach of contract and is requesting a minimum of $5 million in deposit returns, damages and legal fees. The buyers who evidently saw no progress in sight ran out of patience and decided to turn to the legal arena to recover what they can.
Demand for the high-rise and luxury condominium product in the valley has certainly tapered off which puts more pressure on any project's presale stage. A viable development requires strong presale numbers to carry it on to a completion. In a soft market like today's it becomes a major hurdle to clear.