Several years after the Gramercy’s unfinished condominium tower imploded to applause from onlookers, developers are moving forward with plans for more apartments in the mixed-use outpost.
Southern California real estate companies Lyon Living and LandSpire Group recently opened The Highline, a 294-unit rental complex located at The Gramercy, on Russell Road, just west of the 215 Beltway in the South- west of the Las Vegas Valley.
They plan to open the project in the winter of 2023, and its amenities are expected to include a rooftop lounge, communal workspace and beer garden, according to a press release, which noted that future plans include 71 townhouses for sale and 25,000 square feet of retail space.
All in all, the new build cycle marks the latest chapter for a suburban real estate business that already includes apartments, offices, and retail space, and has a very Vegas history.
A product of the bubble era of the mid-2000s, the resort was left derelict and unfinished behind barbed wire fences after the market fell. He then sold for pennies on a dollar to investors who imploded one of his buildings, finished the others, and sold the place in pieces for over $ 100 million combined.
Lyon managing partner Pete Zak, whose company acquired the two apartment buildings and vacant land from The Gramercy in 2018, said the existing residential space was 97% occupied.
Like other industries, the Las Vegas rental market faced turmoil and questions after the start of the pandemic. Many tenants have used unemployment benefits, stimulus funds or other assistance programs to pay their rent amid huge job losses in southern Nevada, where casinos are plentiful, and freezes government-ordered evictions continued to start and stop.
But many people have also moved to the valley, including from more expensive markets, under widespread work-from-home arrangements, and southern Nevada has seen apartment construction continue, with rents rising. rapid rise and vacancies tighter.
âAt the start of the pandemic, we noticed a slowdown in rental rates, but that quickly changed,â Zak said in an email.
Developer Alex Edelstein considered Manhattan West, as The Gramercy was originally called, to feature condos, restaurants, offices, and a hotel spread across 20 acres. He reportedly bought the site in 2006 for around $ 30 million and opened the land in the spring of 2007.
But the economy quickly collapsed, funding for ManhattanWest reportedly dried up, and Edelstein halted construction in late 2008, leaving one of the many stranded construction sites littering southern Nevada after its frenzied real estate market died down. .
Edelstein sold the unfinished complex to The Krausz Companies and WGH Partners for $ 20 million in 2013 after spending $ 170 million on it.
The new owners changed its name and completed its two four-story apartment buildings and two four-story office and retail buildings. They also decided that the condo tower should go.
Demolition crews wired the nine-story building with explosives and imploded it in February 2015. The Sunday morning show drew in crowds, and Bloody Marys and mimosas were offered to guests at a safe distance from the explosion site.
The owners sold The Gramercy’s 187,000 square foot commercial buildings to The Koll Co. and Estein USA in 2017 for $ 61.75 million. Lyon acquired its section for $ 45.75 million the following year, reclaiming 160 apartments and 12.6 acres of land and parking.
Zak has confirmed that The Highline will occupy the footprint of the old condo tower.
From big plans to a big flop and then a big boom, the land is now back to square one as a new building, once again, starts up.