MGM 3rd Quarter 2010

The third quarter of 2010 has officially ended and it’s time to take stock of recent developments at the MGM Signature Hotel/Condo project. I have been following this particular property for over two years and have published a quarterly update throughout that time. This quarter is particularly noteworthy as it has brought the opportunity for fractional ownership in the MGM Signature towers for the first time in the history of the development. (More on that later in this article.)

Beginning with the sales data: In my second quarter, 2010 MGM update, published on my blog August 17th, 2010, I stated, “I am ready to go on record at this point and say that we have seen the bottom of this market as far as pricing on MGM Signature units is concerned...demand has accelerated so steadily for these units that I believe demand is now outpacing supply.” This prediction has certainly come true. In the third quarter, we watched sales of one bedroom units increase slightly from 24 units in the second quarter to 26 units in the third quarter...but the significant change came in the average price per unit sold. In the second quarter of 2010, the average one bedroom unit at the MGM Signature sold for $218,000. During the third quarter, this price went up substantially to $227,000. Another telling statistic is the decline in the number of one bedroom units selling under $200,000 (6 units in the third quarter, down from 9 in the second.) As this article goes to press, there are no listings for one bedrooms under $200,000.

Although the average price for a studio unit in the third quarter remained steady at $155,000, we saw yet another sharp increase in sales volume. 53 studio units (sometimes referred to as junior suites) closed in the third quarter, up from 41 units in the second quarter, which was already up substantially from 36 units in the first quarter of 2010.

There are currently zero bank-owned REO units of either type available for sale at the Signature towers. There are 5 short sales available for one bedrooms and 24 short sale studios listed. The remaining 11 one bedroom and 33 studio listings are regular re-sales.

As I stated at the end of the second quarter, demand is now exceeding supply at the MGM Signature. If you are at all interested in investing in this property, now is a great time to do it. I track all four possible methods of acquiring a unit (short sales, REOs, re-sale, and units purchased directly from the trustees’ sale) in order to get my investors the best possible entry price into the property. As a result, I currently have the lowest priced strip-side studio unit available in the entire property. It is priced at $144,000. (Contact me if you are interested.)

Another option we have just put in place is for those of my clients who have expressed an interest in owning a portion of an MGM unit that they can use for vacations, etc. We have just put together a fractional ownership plan that works perfectly for those who want to invest a lot less money and still control a four week block of time at the MGM Signature. We are currently offering fractional options on two different units. The fractional shares sell for $14,995 and include all maintenance fees and HOA dues for the first year. Each share is entitled to four, separate, full weeks of use of a strip-side unit with balcony. Investors who do not wish to use the unit for the entire share can place the unit in the rental pool and earn revenues on the room for any un-used nights.

If you are interested in purchasing a unit, or a fractional share of a unit, at the MGM Signature Hotel/Condo, please contact me for more details. I have specialized in this property for years and would love to help you acquire a piece of the Strip.

Glenn Plantone
(702) 769-9872
gsplantone@gmail.com

Come Visit Las Vegas to Buy Real Estate and Stay at the MGM Signature for Free!

Those of you who have followed my articles over the last several years, know that I successfully “called” the bottom of the Las Vegas real estate market in May of 2009, months before the news sources announced the same thing. (See my blog entry of May 27th, 2009: http://vegasforeclosures.blogspot.com/2009/05/las-vegas-real-estate-market-bottom-is.html .) It has been a year and a half since then, and prices have remained steady. We are in a pricing plateau of sorts. As a result, it continues to be a great time to purchase investment or vacation properties below market prices and below builder replacement costs here in the Las Vegas valley.

A strategy that my team has been using quite successfully over the last year, involves purchasing short sale properties at below market value rates, performing light rehab on the properties and then placing lease option tenants in the homes. Using this strategy, we are currently generating 12-14% returns (CAP rates) for our investor clients on single family homes in the Northwest. The investors purchase turn key properties, fully rehabbed, with lease option tenants already in place and begin earning 12-14% on their money right away. And the best part is that these are phenomenal returns will only improve over time as rents increase and home prices appreciate.

If you have been waiting for the right time to jump back into the real estate investment market in Las Vegas...now is the time! If you live outside the Las Vegas valley and are interested in purchasing an investment or vacation property, we would like to extend to you a very special offer. We have recently purchased three beautiful units at the MGM Signature Hotel Condos and are inviting all of our clients to come stay with us for two complimentary days at the MGM while you explore potential investment real estate in Las Vegas. Please call Glenn for more details on coming for a visit.

REOs Depleted at MGM Signature Condos - Glenn Plantone Once Again Offers Lowest Priced Strip Studio at $144K

I have been following the MGM Signature Hotel Condos for the past three years and have watched as many of the units that originally sold during the height of the real estate boom for hundreds of thousands of dollars moved back to the bank as foreclosures. These units later re-entered the market as bargain-priced REOs. However, as the real estate market has continued to rebound in Las Vegas, interest in the MGM Signature property has risen steadily. This increase in demand has caused prices to begin to creep up and the number of available REO properties to shrink. In my article of April 27th, 2010 entitled “Short Sales Continue to Rise at MGM Signature Towers,” I predicted that, by the end of 2010, we would see a complete shift away from REO foreclosures at the MGM Signature. I predicted that the number of available REO units would continue to drop throughout the year and be replaced by short sales and other forms of private party selling. I also anticipated that the occupancy rates for the rental pool at the MGM Signature would rise this year as compared to 2008 and 2009.

These predictions have come true. As of this writing, the number of available REO units within the MGM Signature complex has dropped to ZERO. Also, year-to-date, the management company for the Towers has been able to average an 86% occupancy rate for the property with an average room rate of $121 per night for strip side studio units.

Because I specialize in the MGM Signature Towers, I have been able to list and sell several of these units to investors who are using them as vacation properties and/or cash flowing them in the rental pool. I currently have a 10th floor unit available with a beautiful strip view. It is in the third building with the pool just below. (125 East Harmon Ave.) At $144,000, this unit is the lowest priced strip side studio available in the entire complex. If you are interested, this purchase must be a cash offer and you need to act quickly. This unit will not remain available for long.

Glenn Plantone
702-769-9872
gsplantone@gmail.com