Roberta's Las Vegas Real Estate Blog: Las Vegas - Israel Investment Perspective

Las Vegas - Israel Investment Perspective

Recently there have been some major Israeli investors in the Las Vegas market. The most often heard mentioned is EL-AD Group with their purchase of the Frontier property on the Las Vegas Strip at a record price per acre, and it now being on hold until credit markets relax. There are others as well, including EL-AD's partner in the Plaza, Nochi Dankner's multi-billion dollar IDB Developments / Property and Building that is in for 50% of the estimated $8 billion project.

Artist Rendering of Las Vegas Plaza

Dankner's investment in Las Vegas doesn't end there. They have recently refinanced and increased their stake in Queensridge in Summerlin, as well as the soon to be $850 million Tivoli Village mixed use project next door. The 700,000 square foot development will include retail and restaurant space, a 36,000 square foot 8 screen theater with reclining 'Lear jet style' seats, and 340 loft condo units similar to the District at Green Valley Ranch.

CLICK FOR LARGER IMAGE
Queensridge Las Vegas - Click for larger image.

Another major player in Las Vegas is Africa Israel. They are the majority partner in the group that acquired the former Las Rambles / W Hotel site on Harmon. They have already received approvals for a new resort project on the site and are currently working on consolidating the parcels and vacations and abandonment of streets to accommodate their planned layout of the new design.

So how are these investments, in this media portrayed 'horrible' Las Vegas market, being viewed from their homeland of Israel? Analyst Shai Lipman of Tel Aviv-based IBI Investment House was quoted as saying he is unmoved by the crisis reports of Las Vegas. With that in mind he's given Dankner's Property & Building and Africa Israel Properties a buy rating. He also said that the planning for the Plaza project will be complete in 8 - 10 months, and the financial markets will be clearer by then. Strangely enough, the Plaza and Queensridge loans have been extended until next May.

I also was enlightened to an interesting interview of Segi Eitan, the CEO of Property and Building, in Israel's Hareetz. Some of the interesting highlights was the very favorable 6.3% interest rate they received for extending the Plaza loan, and she states it's affirming Goldman Sachs and Credit Suisse potential in the project. When asked if there were regrets on being in the Las Vegas market during this downturn, she replied "If you want to make money in life, you have to take risks. "There's no such thing as reward without risk. Looking backward is no great trick. I remain optimistic about the success of this project." In response to slowdowns in the luxury condo market that includes their Queensridge, she states that they aren't compromising in pricing because..."These are some of the best luxury apartments constructed in the city. When the storm passes, the apartments will go at the speed of a missile launch."


It would appear that in spite of all the gloom and doom heard from the media, there are those that still see the potential in Las Vegas' future and continue to invest in it, even from half a world away.

 

If you are interested in relocating to Las Vegas or would like information on Las Vegas real estate, please email me roberta@search4lasvegashomes.com or call me at 702-354-8988. I look forward to hearing from you!

 

 

Roberta's Las Vegas Real Estate Blog

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Comment balloon 8 commentsRoberta LaRocca • August 21 2008 01:46AM

Comments

Roberta - Very impressed with the information on your post. Your source of information is wonderful.

Thanks

Posted by Robert Vegas Bob Swetz, Las Vegas Henderson Homes for Sale (Realty ONE Group) almost 10 years ago

Roberta, that is interesting information.  It is good to have investors looking to continue the building in Las Vegas.

Posted by Tony & Darcy Cannon, The C Team (Aubrey and Associates Realty) almost 10 years ago

WOW that is just FANTASTIC! I had no idea so much was going on. I need to come visit!

Your friend in Charlottesville!

Posted by Charles McDonald, REALTOR®, Blogger, Principal Broker®, Owner (Charlottesville Real Estate Solutions) almost 10 years ago

Robert: Thanks! Have a good supplier for my sources, it comes in handy to know what is really happening around Las Vegas.

Tony & Darcy: Yes it is, and have heard there are others taking some hard looks at Vegas properties for developments or investment. Like Segi said..."When the storm passes"...

Charles: Even with a couple projects on delay for better financing, there is so much going on it's hard to imagine it all. You should plan a trip and see for yourself!

Posted by Roberta LaRocca, REALTOR®, Broker, Salesperson, Property Management (Simply Vegas Real Estate) almost 10 years ago

One Queensridge Place is one of the finest properties in the nation. 

Posted by Aaron Auxier - "Hollywood's Connection to Vegas"® (Realty ONE Group) almost 10 years ago

Aaron: Yes it is. Easy to understand why they aren't compromising their prices.

Posted by Roberta LaRocca, REALTOR®, Broker, Salesperson, Property Management (Simply Vegas Real Estate) almost 10 years ago

hey stranger....  those are some cool and interesting pictures.  And I need to get up to Vegas one of these days.... in any case, hope all is well.

Jeff Belonger

Posted by Jeff Belonger, The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans ( Social Media - Infinity Home Mortgage Company, Inc) almost 10 years ago

Jeff: Hey....Stranger than what? :-) Yes, some cool stuff around here, you'll have to make the trip. Doing well, and hope you are, too!

Posted by Roberta LaRocca, REALTOR®, Broker, Salesperson, Property Management (Simply Vegas Real Estate) almost 10 years ago

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