Newport Lofts Las Vegas condos has lender woes under new management by previous lender. The 23 story downtown luxury condominium project has canceled a proposed auction, of 60 units with prices starting from $229,000, due to new ownership.
Fidelity Investments institutional assets management division, Pyramis Global Advisors, is Newport Lofts’ managing partner.
The $115 million real estate development is scheduled to have a meeting with bank officials and developer West Seegmiller.
Condos for sale have been stagnant the last six months for Newport Lofts, with only one completed. Six months ago, when the first units closed, the average price totaled $536,315 of 32 units sold.
Neighboring luxury condo development SoHo Lofts, by developer Sam Cherry, contributed with financing, marketing and construction of Newport Lofts with a joint venture with West Seegmiller. Cherry has a continued good relationship with Breslin Builders, the general contractor and Corus Bank, provided the construction loan for the development.
Cherry Development has not felt any financial impact from the change in ownership. Because the Las Vegas Strip is very popular with local an international investors, they are not particularly interested in off Strip or away from the resort corridor.
Due to the mortgage crisis and financial difficulties of mortgage loan borrowers there have been problems at closing of the condominiums.
This year should see more investors not having the ability to refinance or sell their condos in the Las Vegas high rise market.
Some condominium developments for sale have several remaining units with never lived in resale homes selling for less than direct from the developer. Source: Review Journal