Tales of Woe At Lake Las Vegas

by Deidre Woollard (RSS feed)
Jun 6th 2009 at 9:02AM

In good times when money is flowing and everything's coming up roses sometimes the impossible seems not just doable but necessary. A manmade lake surrounded by an Italian-style village in the middle of the desert starts to sound not like some sort of fevered heat fantasy but like a smart business decision (and you can even throw a floating ice rink on that lake for good measure). But the development at Lake Las Vegas is starting to look like a stock market mirage. The LA Times has a great piece assessing the damage and chronicling the decline of a neighborhood that has been home to Celine Dion and a Ritz-Carlton.

The trouble began last year as Las Vegas real estate continued to sink. The developer, Transcontinental Corp., lost the property in foreclosure after defaulting on $540 million in loans and the new owners of Lake Las Vegas filed for Chapter 11 bankruptcy last summer. The Ritz-Carlton owned by Village Hotel Investors LLC, also filed bankruptcy and was been sold to new owners and one of the area's golf courses has been abandoned. The Ritz-Carlton remains open is offering a variety of deals that include free nights and special rates.

The development wasn't completed but new home construction seems pointless right about now. The LA TImes article states that 10 percent of the homes on the market at Lake Las Vegas were either bank-owned or short sales and even more incredibly 80 percent of the homes listed were vacant. The community which was designed as both a resort and residential second-home destination could be some say, on its way to becoming a ghost town. Others say this is just a temporary setback in a resort which will rise again along with the fortunes of the city in the distance, Las Vegas. The community pays a water bill of about $2 million a year and real estate values in the area have fallen by over 50 percent in many cases. The homes are not necessarily cheap though because homeowners association fees are exorbitant.

Meanwhile there's trouble at the Loews Lake Las Vegas resort which is facing foreclosure. Loews Hotels has said it cannot pay off a $117 million loan to San Francisco-based Wells Fargo Bank and is struggling to keep the resort, which was once a Hyatt Regency, open. The failure of the hotel would be another blow for this development because at this point it seems unlikely that another brand would come in and take its place.

Tags: development, lake las vegas, LakeLasVegas, las vegas, LasVegas, nevada

Filed under: Luxury Travel & Hotels, Real Estate Developments

Source

Subscribe to these comments

Reader Comments (Page 1 of 1)

Bouvier Jun 9th 2009 3:30AM

As with much of the media, this article too seems to only concentrate on the negative. It's what sells the news. Seems like with the media begins to spead the news, it happens. Does $4.00 a gallon gas prices, housing bubbles and with this article... ghost towns?
-
What this article doesn't mention are all of the wonderful things about Lake Las Vegas. The Marina, the fun concerts, restaurants, beautiful scenery and it's the gateway to Lake Mead and the Hoover Dam. As usual, it's a typical gloom and doom that our media thrives on. It's the main reason I refuse to watch the news.
-
I hope that Lake Las Vegas rebounds. I will continue to visit and support the community and the concept.
-
Thanks for nothing Diedra.

Summerlin LV Jun 13th 2009 11:58PM

All i can say is what a horrible location they chose to put it in. There is nothing but crap around Lake Las Vegas. For the "wealthy" home owners, the only shopping near them is a ghetto (and I mean ghetto) Walmart. Why they did not chose to put their project in Anthem or Summerlin is beyond me.

gpminow Jul 28th 2009 12:09PM

We bought in Lake Las Vegas because of the desert surroundings and being away from all the hype of Las Vegas. While LLV has been hit hard, it will recover as will all the real estate. The problem is not with the real estate, it was with developers who borrowed too heavily on the future.

David Aug 17th 2009 12:57AM

Lake Las Vegas has been very busy during the summer. On several occasions, the hotels ad Montelago village has been completely sold out!!!!!! Yes, that's 100% occupancy. What resort/hotel is doing that right now? Hardly anyone, especially mid-week!

The foreclosed properties are being bought up pretty quickly now. (lots of activity right now) Pretty soon things at Lake Las Vegas, and hopefully the rest of the country will be get back to normal. Those once empty foreclosed properties will be filled with owners and guests which will add more buzz to the community. The new construction, which is stalled like the rest of the country, should return soon as well.

So, this busy summer for Lake Las Vegas should prove that it certainly isn't a ghost town. I'm visiting my condo this weekend and plan on relaxing by the pool, enjoying the lake and mountain view & taking a brunch cruise on the LaContessa yacht!