Las Vegas Penthouse, Estate of the Day

by Deidre Woollard (RSS feed)
Jul 31st 2009 at 1:01PM

Real estate isn't faring well in Las Vegas lately but loss often leads to opportunity. Case in point, this three-story penthouse in the Sky Las Vegas complex on the Strip. It was once listed at $10.3 million when it was published in Architectural Digest's Estates for Sale but that was a couple of years ago in a booming real estate market. Now it is listed at $2.99 million with Luxury Realty Group.

For your money you get approximately 5184 square feet of living space with four bedrooms and huge windows showcasing Strip views in two directions. The penthouse has two terraces, one with an outdoor kitchen and an outdoor hot tub. The condo also includes two wet bars; multiple ice makers, wine refrigerators and dishwashers; a home theatre and a home gym.

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Tags: condo, estate of the day, EstateOfTheDay, las vegas, LasVegas, luxury las vegas real estate, LuxuryLasVegasRealEstate, penthouse, sky las vegas, SkyLasVegas

Filed under: Estates

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Reader Comments (Page 1 of 1)

posting.inquiry Jul 31st 2009 2:24PM

It certainly is STILL OVERPRICED compared to current comps for resale high rises in Las Vegas. Majority of the competing high rises are in the mid to high 200's per square foot. In addition, the location of Sky leaves a lot to be desired. Across the street is the abandoned and bankrupts Fontainbleau, just south is the abandoned Echelon project, adjacent is the old Circus Circus Hotel and immediately next door to the north are numerous towers of time share flats and empty vacant lots. The SKY missed things by a few points, being location is not the most desirable at this time. The most difficult is exiting and entering the complex on the Las Vegas Boulevard Strip. Can you imagine leaving your complex at night when it is bumper to bumper traffic? You can definitely do better!

Goto98 Jul 31st 2009 2:58PM

I agree with the previous poster. Having been interested particularly in Vegas real estate during these down times there are certainly better options available at similarly 'good deals'.

Eric of AZ Jul 31st 2009 4:09PM

Price and location aside, it is a very attractive apartment. I always wonder when someone spends all that money on a fancy home theater, and then puts in a 42-50" LCD TV (which this appears to be, comparing it in size to the adjacent components).

GlobalDia Jul 31st 2009 4:21PM

its a very nice place. but theres so much competition in that abysmal market, that the seller will be extremely lucky to get $2mio for it.

gregg Jul 31st 2009 6:53PM

Actually, the apartment is pretty nice, but the surrounding area is blighted, and that probably wont be improved upon for several years to come. But I still cannot imagine this place being listed at 10 million, even a couple of years ago when the market was better. That was way too much then, as 3 million is now. But still, nice pad.

kenny17995 Jul 31st 2009 8:13PM

Nice outdoor space. I love the home theater and the balcony on the 2nd floor.

visit my website at: http://www.homesoftherich.net

SC Aug 2nd 2009 3:01AM

Posting.Inquiry really doesn't understand Las Vegas prime location real estate. I'm a Vegas real estate investor and now do to very limited supply of high rise condo foreclosures Vegas is experiencing multiple offers. I can no longer get the deals I could just 3 months ago. To say the penthouse on the Strip is valued in the $200's a square foot is insane. First, that penthouse is one of a kind and located in a high rise on the prime Strip. Yes, there are hotels in a pause state now but funding is coming and they will have the last laugh. Vegas has always reinvented itself and come back from the bad times EVERY time historically. As for that penthouse, my Vegas real estate appraiser just ran the numbers in the CURRENT market and shows it worth more than $4 million. Most other penthouses sell for 3 to 6 times that price. And yes, about 2 years ago that penthouse would have been worth more than $12 million. For the right buyer, it's a great deal and a prize penthouse. I just learned its exterior is shown in the movie The Hangover.

Nelson Aug 3rd 2009 10:40AM

Sounds to me like "SC" has a vested interest in this property, among others. Price not withstanding, I have viewed this property and all the drawbacks pointed out by "Posting.Inquiry" are still valid. This property is not a "prime strip location". I challenge you to walk in the mid-day heat from this location to the true prime strip location. The fact that the entrance/exit is directly onto the strip, forget it. Anyone who knows Vegas knows you never drive on the strip. Finally, the fact that it appears in "The Hangover" has a much draw for me as the overused "Celebrity Owned" selling point. Anyone who pays a premium for this is crazy!

SC Aug 4th 2009 2:39PM

For those readers who aren't familiar with what is considered the Strip and what is not, the Las Vegas Strip is only 4 miles long and runs from Sahara to Mandalay Bay near Russell Rd. Any property with a Strip address within the 4 mile Resort corridor is considered prime just like Ocean Drive or Park Ave. Yes, currently the north end of the Strip has most of the residential condos including Park Towers that starts in the multi-millions which incidently is located near-Strip. The only high rise residential condo towers with a real Strip address are Sky and CityCenter. They are not hotel condos. Yes, Sky is currently surrounded with projects on hold or approx 70% complete like Fontainebleau. Just like Steve Wynn when he purchased the Desert Inn and built Wynn and Encore on it he had lots of naysayers like Nelson booing him all the way to the bank. Some people like Vegas and see it's potential while others want to see it fail and do all they can to promote its demise. Vegas has always reinvented itself and will so do again. Buyers from all over the world are now buying high rise condos on the Strip (if they can get them as multiple offers are now occurring on them) or near Strip. The penthouse in this Blog I have also seen and found it to be an incredible luxury condo. If I could afford it I would buy it as there's nothing like it in Las Vegas.

posting.inquiry Aug 4th 2009 7:28PM

In regards to SC comments and responses, I agree with NELSON the whole picture about SKY and the area around surrounding this sole and single complex on the "strip" is still of questionable value at this point in time. Just because it has a Las Vegas Boulevard address does not mean it is "PRIME" real estate nor it is in the most desirable location. The distance between Steve Wynn complex and Sky involves crossing over numerous hotels that are not even at par with the area of Wynn, Encore, Venetian, Palazzo, Treasure Island and the Fashion Mall. It is a blight of truly sad hotels going north from this area. And to see empty lots and half finished constructions leaves a lot to be desired. To spend a almost $ 3M on a unit in this area of the strip really makes one wonder the true value of this unit. SKY has 409 units with a foreclosure rate of 43% and a median sales price of $ 383,208.00

In comparing SKY with another project that may not have a Las Vegas Blvd address but a stone's throw from the new MGM CityCenter, I would rather buy into PANORAMA TOWERS which has 180 degree view of the strip from North to South and the fact I can cross over a very short bridge and be directly into CityCenter within minutes instead of getting stuck in the 45 minute traffic from SKY to CityCenter. The NEW LAS VEGAS will be at the heart of MGM CityCenter, not at the very end of Las Vegas Blvd where Circus Circus, Riviera and the aging Sahara Hotel is at. SKY may have the potential as SC quotes but it will takes years, many, many years before this end of the strip is developed in the same category where MGM CityCenter is located or the area of Encore and Wynn.

In comparing SKY versus PANORAMA TOWERS, the penthouses offer a far more competitive pricing per square foot with amenities far more comprehensive than SKY. As well as the HOA is one of the most competitive priced per square foot for a Las Vegas high rise. And the fact that Panorama Towers has 616 units, a foreclosure rate of 33% and a median sales price of $ 475,000.

SC is correct to disclose that " Buyers from all over the world are now buying high rise condos on the Strip (if they can get them as multiple offers are now occurring on them) or near Strip." but what he has failed to say is this: Sales Activity is indeed way (multiple offers) but the sales price continues to go down. A unit that was purchased at Sky on March 2009 of this year is priced higher than what they are selling per square foot in August 2009.

I, too, would consider buying buying a high rise and get into the action of "multiple offers" but only when pricing has stabilized. SC can quote the words " multiple offers" but should not ignore that the sales price continues to decline and most likely will continue to decline as more units come into the market now that the OBAMA moratorium has been lifted and the banks has enough time to process the onslaught of foreclosures coming into the market in the months ahead.

SC Aug 5th 2009 11:26AM

I find it amusing that posting inquiry would promote Panorama Towers and suspect he/she has a vested interest in that project. For those who don't know Panorama Towers, it is located in the industrial area of Las Vegas among strip clubs and granite companies. Great location? I don't think so. I'd rather walk out of a location like Turnberry or Sky to nearby hotels and services than walk along an industrial area. Even near Sky the older hotels will be replaced over time as posting inquiry knows has always happened in Vegas. Second, the road noise from the 6, soon to be 10, lane highway that has excessive noise 24 hours a day coming into your Panorama unit including those on high floors is horrible. I've toured many of Panorama units and won't go near them. Even the tinting on the windows is half ass as it's only partially done. The kitchens used materials that appear to be lower quality and the buildings currently have a demographic of renters that I would not want near me. Panorama Towers looks at CItyCenter across the major highway and you have to cross a bridge to get to any of the prime Strip services. There's a car service that takes you to the Strip but you have to find your way back. Good luck with that one and that's why prices have fallen so far in that project. I'll take Turnberry, Park Towers or Sky any day over Panorama Towers.

posting.inquiry Aug 5th 2009 12:46PM

I DO NOT HAVE ANY VESTED INTERESTS NOR AS A CURRENT OR PREVIOUS RESIDENT/OWNER IN ANY OF THE FOLLOWING PROPERTIES:
SKY
ALLURE
PANORAMA TOWERS
PARK TOWERS (off Strip)
TURNBERRY TOWERS (off Strip)
MGM TURNBERRY RESIDENCES (off Strip)
PALMS CASINO TOWERS (off strip)

SC absolutely misses the whole point of the article and comments: VALUE OF THE PROPERTY. As I have shared directly with pure dollars and facts, the foreclosure rate and average resale price of SKY is substantially less than one of the comparison I made, which was PROMENADE TOWERS. I can go on and on with the other residential high rises with actual data from Clark County Recorder's Office and the local title company but there is no need for that.

It is CLEAR that the value of high rises, especially SKY, is substantially less when it originally sold and it is still CONTINUING TO GO DOWN IN VALUE because it is not the most preferred high rise living on the strip. What SC has failed or refuse to acknowledge is that on the Las Vegas Boulevard Strip, the new strip will focus on the $ 9 Billion dollar MGM CITYCENTER. SKY is so far remove from the area that it took a gamble and unfortunately, is now located in the northern part of the strip where mediocre hotels or bankrupt resorts are standing. And no, I do not have any vested interest in MGM CITYCENTER either!

Again, SC's reference to "multiple offers on units" is driven by the fact that price of high rise units are continuing to dramatically spiral downward. Of course when it is perceived as a good value, people will come out of the woods! And again, SC did not acknowledge the fact that OBAMA's FORECLOSURE MORATORIUM is now over and these additional units that could not go into foreclosure will now be added to the pool of available units, therefore, forcing the price to continually go down. Get out of the mental thinking of "This kitchen, that material, this window..etc" and evaluate on the current and future sales price per square foot and then you will realize that this Las Vegas Penthouse is still price above and beyond the comps for other penthouses in the city. If it was truly a bargain and with SC's assertion of buyers from "all over the world are clamoring with multiple offers" then this penthouse should have sold by now. Give me pure data and statistic and not your own perception that we should over pay when clearly all the comments on this article mirrors that message.

SC Aug 5th 2009 6:41PM

Wow, didn't realize posting inquiry was a licensed appraiser as that's how the responses are written. The high rise construction companies I know in Las Vegas will tell you the hard and soft costs to build a high rise, not counting land, is currently higher than $450 a square foot on the BOTTOM floor of a high rise. These are replacement cost numbers from these experts in the construction business. As you go up a high rise tower the price per square foot to construct a high rise increases significantly. The top of the high rise is the most expensive price per square foot; especially if unique construction to build two story living rooms like this penthouse in Sky occurs. When you factor in the land value, which according to Las Vegas commercial land experts is now at $22 million an acre down from its peak of $34 million an acre, then the math of the value of the top floors for a high rise on the Las Vegas Strip per square foot replacement cost are not the low numbers posting inquiry quotes. Market forces and the media currently have created an over correction in the high rise residential condo prices based on replacement cost, not hotel condos, in Las Vegas in my personal investor opinion. I guess we could go on and on but clearly posting inquiry clearly has a huge disdain for one part of the Strip and favors the highly dense, valet only parking, CityCenter end of the already heavily congested Strip.

LeeAnn Aug 6th 2009 6:31PM

Gentlemen/Gentlewomen: You both have valid points of view but this is merely an area to post something like "Wow, I'd like to live there" OR "Nope, I will stay and keep what I have". ROFLMAO

Haven't either of you ever heard the expression "One mans meat is another mans poison"?

Why don't you AGREE TO DISAGREE!

Having been to Las Vegas many times and having had an Aunt who resided on Gila Bend Way, I am familiar with the Strip Area. Yes the area down by Circus Circus is old and worn, but LV has always reinvented itself and only a matter of time before that area glitters again. As for the MGM area, traffic there is dense and at times very trying. In addition some of the Casino/Hotels there are aging and will soon be part of history like many others. But they too will reinvent themselves. In addition I am sure it will take sometime, but even the area where the RIO is will someday be surrounded by other buildings and not stand out alone anymore.

I just wish good luck to the seller of the property showcased and likewise wish much happiness to the future buyer! May they both be happy with their decisions!

Have a good day.