15,000+ Investor Group Is “All In� For Its Las Vegas Condo Conversion
The announcement came yesterday that the investors for GetPreconstructionDeals.com will actively participate in a Henderson, Nevada condo conversion has caught many by surprise in the industry. Historically, the group is known for large acquisitions of preconstruction investments but rarely invests in condo conversions.
When the group’s co-founder, Michael Zari, was asked about the unusual investment, he stated that, “we believe this condo conversion is ideally suited for our investors, rather than much higher priced preconstruction projects in the area. Given the unbelievably high cost of acquiring land in the Las Vegas area, it is impossible for us to buy a better valued investment, even if we get the absolute best preconstruction prices. Essentially, we are buying properties at 40-50% below the average sales price in the area.�
The Traverse point condo conversion is located just a few minutes drive from the Las Vegas strip. Because of its proximity to Vegas and its ever expanding employment opportunities, the city of Henderson is one of the fastest growing cities in the nation. Last year, the average price of homes in the area escalated to more than $380,000.
Apparently, GetPreconstructionDeals.com is not the only group that has noticed the area. K&B holmes and Centra Properties announced in October of 2005 that they were teaming up to build a $400 Million, mixed use development called Stone Lake just a few blocks from the Traverse Point condo conversion. In addition, Realty Management Incorporated has announced its plans to build a 100,000 square foot, mixed use 17th and Vine project in the same area.
When asked their investor’s strategy for the Traverse Point condo conversions, Mr. Zari stated that, “we envision our investors will want to hold these properties for at least 12 months but the really smart ones will probably rent them for 3-5 years. At that point, we see tremendous capital gains opportunities with very minimal risk.�
(Source: GetPreconstructionDeals.com press release)