The luxury condo tower currently under construction in front of the Venetian and Palazzo resorts was planned some years ago when the real estate market in Las Vegas was moving along very nicely. The market conditions, however, have changed quite a bit since then. The high-rise condo segment in Southern Nevada is overbuilt, demand is waning and prices predictably are softening up. The current mortgage industry woes make getting financing for purchases much harder, too.
Las Vegas Sands, developer of the condos, likely realized that going alone with the project in this less than desirable market environment was going to be tough. To bring in a world-class hotel, resort and condominium operator like Starwood Hotels & Resorts Worldwide would make it much easier, so it contracted St. Regis, a Starwood brand, to operate the tower once it's built. A separate marketing firm will be signed up to handle the sales center.
The project will carry the name The St. Regis Residences at the Venetian Palazzo, Las Vegas. It'll have 398 residences priced, at this juncture anyway, from $1,500 to $2,000 per square foot, placing them among the most expensive units in town. The St. Regis name readily brings to mind luxury and impeccable service among the wealthy across the globe and ought to be of great help in marketing the property, even in this climate. Those who are used to certain high standards trust tested brands like St. Regis.
The Venetian also houses a massive convention, meeting and event facility that is very successful and forms the backbone of its operation here. The St. Regis Residences should definitely appeal to the cultivated corporate buyer for its own officer use or as a base for an important client attending a convention. Moreover, since the condo tower sits right on the Strip many of the units offer priceless up and down views of the action below. That ought to be a big draw.
As things stand right now, the successful marketing of the residences could be accomplished without any price adjustments. By the time the project is scheduled to open in 2010, the market could be much improved.