Onyx mid-rise condo project forced into bankruptcy

San Diego-based Crestone Co. was developing the 2-acre site, formerly the Tropicana Inn. The telephone number listed on the company’s Web site is no longer in service.

Petitioning creditors include Jeffrey Stone, Perlman Architects of California, High Point Construction, Alpine Steel, Sundance Pools and Spas and Precision Concrete.

The $28 million mid-rise project was announced in 2005 as an affordable alternative to the high rises that were being built near the Strip. Units at Onyx ranged from 740 square feet to 2,300 square feet and were priced from the $400,000s to more than $900,000.

They came standard with granite counters, stone flooring, General Electric appliances and 10-foot ceilings. Amenities included covered parking, a pool and a fitness center. Proximity to the Strip and McCarran International Airport was also a selling point.

“I feel sorry for those guys,” Las Vegas-based architect Howard Perlman said. “They owe me money, but they got hurt. Everybody’s getting hurt, but it’s just the timing in the market. Can you sell a condo for those prices? Their strategy was right on when they started.”

Attorney Laurel Davis, whose client has a mechanics’ lien of about $4 million, said a potential buyer made an offer of $35 million, though there’s been no verification of earnest money deposit or ability to close escrow.

In a status hearing last week, Tropicana Inn Investments counsel David Winterton confirmed that the debtor consents to the entry of an order for relief, which marks the beginning of a bankruptcy proceeding. Once the order is entered, a number of deadlines for the case will be established, such as the filing of proofs of claim, the deadline to file a plan and other matters.

The case has been assigned to U.S. Bankruptcy Court Judge Mike Nakagawa.

ECONOMIC INDICATOR: Ritchie Bros. Auctioneers sold $30 million of used construction equipment in Las Vegas in August, indicating continued weakness in the construction sector of the local economy, Forbes.com reported.

“We had been hit with the downturn in residential development in Las Vegas, so we decided it made more sense to sell some of our equipment with Ritchie Bros. rather than pay for it to sit idle,” said Robert Albano, chief executive officer of American Asphalt.

About 95 percent of the equipment was sold to bidders outside Nevada. Salmon Earthmoving Services of Australia had five winning bids.

PECOS BUILDING: United Construction completed the two-story, 24,732-square-foot Pecos Building at 178 N. Pecos Road in Henderson.

The $2 million office and retail project was speculatively built out into three units on the first floor ready to be occupied.

The second floor offers nearly 13,000 square feet of office space with expansive windows for views of Henderson.

Mertz Properties is the developer; Dekker Perrich Sabatini is the architect of record.

BROKER TRANSACTIONS: Rob Lujan, Jason Simon and Frank Gatski of Gatski Commercial represented Sannik LLC in the purchase of two retail pads at Lake Mead Plaza, 6520 and 6540 E. Lake Mead Blvd. The transaction is valued at $6.4 million.

Donna Alderson and Greg Tassi of CB Richard Ellis represented Jackson Shaw in the sale of 20 acres at Northeast Crossing Commerce Center, 2975 Lincoln Road, for $9.3 million. The land was purchased by Dermody Operating Co.

Brad Peterson of CB represented Arroyo Corporate Center in the 63-month lease of 15,103 square feet of office space at 5895 S. Tenaya Way to Stantec Consulting. The lease value is $2.2 million.

Dan Doherty, Patti Dillon and Laura Hart of Colliers International represented RC Willey Home Furnishings in the 55-month lease of 45,000 square feet of industrial space at Craig & Lamb Distribution Center. The transaction is valued at $924,132.

Rhonda Panciro, Grant Traub and Keith Cubba of Colliers represented Community Bank of Nevada in the 10-year lease of 3,500 square feet of retail space at Coronado Center. The value is $1.8 million.

Contact reporter Hubble Smith at hsmith@reviewjournal.com or 702-383-0491.