VEERS, CITYCENTER ANNOUNCES $119 MILLION BULK SALE OF CONDOS
CITYCENTER ANNOUNCES $119 MILLIONS BULK SALE OF CONDOShttp://campaign.r20.constantcontact.com/render?llr=zcrxk9jab&v=001Mo1LsqllbCDeajt2k0ecwYENo5Jh1IMKTq3CACZo7uxQR5X79iemnR-fMyv7c2Nxew_qTzqn8T1qyAa7-92stNEte1nIYeSPUPFBygVcCz23uZb53ar2yBPH4fXaNIITj6bwoTdBjeGSO6S_WXlbC2jtCkM5BW-tAF--UtCM30U%3D
The Sale of 427 Condos at Veer Towers Represents a Shift for CityCenter, and Possibly the Las Vegas Luxury High-Rise Segment
CityCenter, a 67-acre urban resort and residential development, announced today that they sold 427 residential units for $119 million at Veer Towers. The bulk sale reflects an interest in this segment of the Las Vegas housing market by large-scale investors. The transaction is estimated to reflect an average sales price per square foot of $300. While the price point is below previous new construction asking prices for the project, the sale reflects a premium to other high-rise residential products in the market.
We expect the recently acquired units to be held and leased to prospective tenants. The investment time horizon is anticipated to span three to five years (at a minimum), as opposed to a quick flip. The longer-view strategy is likely to provide increased stability for the two buildings, while bringing increased energy to the project.
CityCenter retained control of 11 penthouse units that it intends to sell. The company also intends to focus its sales efforts on the remaining inventory at the premium-priced Mandarin Oriental project within the CityCenter campus. The units are housed on the upper half of the 47-story tower that carries the "Residences at Mandarin Oriental" flag.
It is also worth noting that MGM Resorts International (50-percent owner of CityCenter) recently completed a multi-billion dollar debt refinancing transaction that has put the company on more solid footing from a balance sheet perspective. We would expect the net process from this sale to help further reduce debt and/or provide increased working capital for the gaming giant and its subsidiaries.
