Over the last year I have sold several units at the MGM Signature Condo Hotel, and I decided it was time to experience the property myself from a guest’s point of view. As a result, this past Memorial Day Weekend, my family and I made the long journey to the Strip area from our home in North Las Vegas (about 20 minutes away.) With my wife, and two younger sons (ages 9 and 7), I checked into the MGM Signature on Saturday afternoon to a full house.
From the time we entered the property through the guard-gated entrance off of Harmon Avenue, pulled up to valet parking, and made our way to the individualized owner check-in inside of building 2, the feeling was that we were entering a high-end hotel. The service from the check-in personnel and the bellman bringing up our bags was excellent as expected. Our room was in the middle of the three buildings on the 6th floor - strip side with a balcony. Only about 1/3 of all studio units have a balcony. Units with balconies have higher occupancy rates in the rental pool than non-balcony units. As a result, balcony strip side studios will actually cash flow for investors that are purchasing them at today's new, low prices. The view was outstanding. We felt like we were right on top of the pool with a terrific strip view of the City Center just ahead. Later in the evening, as the sun sank behind the mountains, the lights from the strip and the pool area below were fantastic.
The boys slept comfortably on the pullout couch and my wife and I enjoyed the comfort of the main bed. Any noises from down below were drowned out by the a/c and double paned windows. With a mini-fridge, microwave, cook top, and full kitchenette we were able to bring our own food and drink, enabling us to be very comfortable in our home away from home. The boys really got a kick out of the television and phone in the bathroom, and I appreciated the DVD player that allowed us to watch our own movies instead of paying for an "all too expensive" in-house movie rental.
Many weekends a year, the MGM Signature Hotel sells out and Memorial Day, 2010 was no exception. Typical room rates are $149 for a studio unit and $199 for the larger one bedroom units. After having sold for an average price of $495K (studio) and $795K (one bedroom) just 3 years ago, prices have now come down to a very reasonable $100-200K for studios and $160-$250K for one bedroom units. The MGM Hotel Management Group is one of the many options that investors can use to manage their unit while they live their lives. As an owner, investors can come and stay in the unit as often as they like for a very minimal cost (room cleaning) and keep it in the rental program the rest of the time. (The MGM Management Group will charge 40% of the room revenue to manage the room.) Since the units that are being sold at the moment are usually foreclosures and therefore all-cash purchases, I am seeing a lot of groups of friends and investors pooling their money together in order to purchase a unit. This way, they can all use the property whenever they vacation in Las Vegas and can still share in the positive cash flow and future appreciation of the unit.
As an early riser, it was fun to watch the partiers straggle in at 4-6 am as I leaned over my balcony. We hit the gym at 7am both mornings, and shared one of the two massive onsite fitness centers with only about 10 other people. The fitness center boasted state-of-the-art equipment, including televisions that made my workout fly by. There is also a Starbucks, deli, gift store, computer center, concierge, lounge, and mail room all on site. In fact, I am told by the owners office that about 15% of the hotel condo is occupied by full time residents. All three of the towers are connected and it is only a short walk to the MGM Hotel via a long air conditioned corridor.
Each of the three buildings has its own pool or guests can enjoy the use of the main MGM pool that sits right behind the first building. The towers were built from 2005 to 2007 and have a terrific location just one block off the Strip. It is away from the hustle and bustle, but still only a 10-15 minute walk to the center of the Strip. On Sunday, we walked up Harmon to the Miracle Mile Mall for the Sushi Buffet at Todai. Afterwards, we walked the Mall, enjoyed a family massage at one of the stores, then headed up the strip to the Bellagio to catch one of the wonderful water, music, and light shows that run every 15 minutes.
On Sunday afternoon, we laid out by the pool for about four hours with the kids. I was able to catch some rays, catch up on some reading and spend some quality time in the pool with the boys. Pools two and three are connected and pool two (the one down below our room) is heated and open year-round along with the hot tub.
We checked out on Monday around 12 noon and made our way back up the 15 freeway to our home in the north. It was very nice to experience the Signature from the perspective of a guest and, as an owner, it only cost me the $35 cleaning fee for our two day stay. We are sold. It sure beats a time share.
I have the distinction of having sold the least expensive unit in the complex (a Strip side studio at only $99,900). I have been buying and selling at the Signature for over a year now. I write frequent articles and blogs about the MGM Signature and Las Vegas real estate in general. If you would like to learn more about the MGM Signature Condo Hotel or are interested in Las Vegas investment real estate with strong positive cash flow, please feel free to contact me to learn more.
Glenn Plantone
(702)769-9872 or gsplantone@gmail.com
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