Success in real estate, they say, depends on location, location, location. In Las Vegas, it's also timing, branding and lots of cash.
Some of the newest high-profile luxury condominium projects in Sin City have been folding like a house of cards. The latest to throw in his hand was actor George Clooney, who announced an agreement with his partners Monday to sell his stake in a proposed $3-billion condo-casino project near the Strip.
Clooney and other latecomers are learning that they can't compete with big-name casino-hotels for workers, building materials and brand identity.
But other ambitious high-rise housing and hotel projects from well-established players are going strong, thanks to their deep pockets and access to experienced developers. Others are benefiting from having entered the game earlier in the boom.
Despite a Vegas housing market that has slowed along with other once-hot spots, these luxury condos on or near the Strip are finding buyers among local residents looking to move up as well as business and leisure travelers seeking second homes, local analysts said.
Communities away from the Strip, such as Summerlin to the west, also are beginning to sprout high-rises as the supply of developable land becomes more scarce.
What's keeping these projects alive and well is continuing growth in the region's gaming economy. That in turn has attracted new residents, keeping Las Vegas one of the nation's fastest-growing regions and fueling a continuing real estate boom.
Local residents have grown wealthy from their rising home equity and builders have turned the region into one of the hottest new-home markets in the nation. That further boosts employment growth.
But just like at the poker tables, not everyone can stay in the game. New York-based developer Related Cos. cited rising construction costs and slowing sales in unloading its 25-acre, 11-tower Las Ramblas condominium, hotel and casino project, backed by Clooney and his business partner, Rande Gerber.
Clooney originally pitched the project in August as a resort with a classic, tuxedo-and-martini feel. On Monday, Clooney said that he was disappointed by the sale.
"I'll donate my profits from the sale to the African Debt Relief Project," Clooney said in a statement. "And I guess I'll find someplace else to gamble."
