In the past few months, the DK Las Vegas portfolio of condominiums, which includes The Ogden and Juhl in Downtown Las Vegas and One Las Vegas on South Las Vegas Blvd., has experienced unprecedented sales activity. Combined, 23 sales valued at more than $9 million were closed in May; 27 sales valued at nearly $10 million were closed in June; and July, which is historically the slowest sales month of the year, set a record with 30 condo sales, including a record-breaking 15 sales at Juhl, alone.
At One Las Vegas, a 2,854-square-foot penthouse recently sold for $1,161,900, the equivalent of $407 per square foot. The sale, made to a California resident, is the most expensive residence sold to date in the entire portfolio since DK Las Vegas acquired it in 2013.
At The Ogden, a 2,044-square-foot condominium recently sold for $699,900, which equates to approximately $342 per square foot. The floorplan, The Goodman, is one of several that comprise The Ogden’s Premier Collection, an elite collection of highly upgraded residences, that according to Vaknin, are selling faster than the property’s smaller, less expensive homes. In fact the majority of residences sold throughout the entire portfolio are among the largest and most luxurious of the available condos, evidence of a national and local trend that today’s buyers are seeking higher-end homes.
Just last week, two condos sold at The Ogden, both priced at more than $700,000 with a third, priced at approximately $689,000, scheduled to close next week. “Our more luxurious condos are practically flying off the shelf,” said Uri Vaknin, a partner at KRE Capital LLC, which acquired in 2013 a portfolio of more than 1,300 condominiums in partnership with Dune Real Estate Partners as DK Las Vegas.
According to Home Builders’ Research, condos and townhome sales in Southern Nevada accounted for 11 percent of builders’ sales last month, up from 3 percent during the same month last year. “The pace of luxury condo sales speaks volumes about a growing trend for both Millennials and empty-nesters to right-size their lifestyles and reduce their footprint while still maintaining or upgrading to a level of luxury,” said Vaknin.
According to Vaknin, the factors driving luxury sales are many. “While home prices are on the rise, prices in Las Vegas are still affordable relative to other markets, especially California where a majority of our buyers come from,” he said. “The universal appeal of a Las Vegas address is created by our city’s quality of life, year-round moderate climate, access to world-class dining, entertainment and shopping, and now, professional sports. Buyers are trading in their California homes for a better quality of life in Las Vegas and a rich condo lifestyle created by an abundance of amenities.”
As a result of strong interest in the larger, more luxurious condos, Vaknin is making significant upgrades to several residences at both One Las Vegas and The Ogden. Recently, several highly upgraded condos sold immediately upon completion of their make-overs at both communities. So Vaknin and his team are responding with a purposeful focus on upgrading select homes with more luxurious finishes and detail.
“It’s a real shift from just a few years ago when our hottest selling homes were our smallest, value-priced floorplans,” said Vaknin. “Since late 2017, it seems everyone is interested in larger, more luxurious homes, and our sales prove it.”
And while prices are clearly on the rise in Southern Nevada because of high employment and shrinking inventory, backed up by a recent report from Standard & Poor’s CoreLogic Case-Shiller national home price index, Las Vegas is still catching up to many other metropolitan areas that recovered more quickly from the economic downturn, Vaknin said. “That means there are still many great values to be had here, and many of our properties are among those exceptionally great buys. Plus, with interest rates going up, now is the time to buy.”
“Providing attainable mortgage financing for our communities is yet another plus for those seeking to own their home,” said Vaknin. The Ogden offers a myriad of options, including FHA, Fannie Mae and VA programs. In fact, The Ogden, and now One Las Vegas, are the only condominium towers in Las Vegas since 2008 to obtain Fannie Mae PERS (Project Eligibility Review Service) project approval, offering financing options not generally available in other condominium communities. This means qualified buyers can purchase with as little as 3 percent down for first-time buyers, 5 percent for primary homes and 10 percent down for secondary homes.