Phase of North Las Vegas condo project acquired

Blue Marble Development has purchased the unfinished 48-unit third phase of Pecos Creek condominiums at 1830 N. Pecos Road in North Las Vegas for $750,000, or roughly $15,000 a unit, the company president said Tuesday.

Pecos Creek is the latest example of a bankrupt condo project acquired by investors looking to scoop up undervalued real estate in Las Vegas. Others include Mira Villa near Summerlin and The Modern on West Flamingo Road.

"We felt like it was a good idea to buy them," Blue Marble President Dierdre Waitt said. "We're going to rent them for now and if the market improves, we'll eventually sell them. We're really hoping that Vegas is waking up right now."

Current listings for the one- and two-bedroom units run from about $19,000 to $27,000.

Blue Marble is doing mostly finish work on the condos, including cabinetry and flooring, along with finishing the pool, Waitt said.

Pecos Creek could produce an 11 percent return on investment if 90 percent of the units are leased at $500 to $600 a month, said Rick Hildreth of Land Advisors Organization in Las Vegas. He brokered the deal on behalf of the seller, Desco Group.

The project was vandalized while it sat vacant for three years after lenders pulled the financing and will probably require another $700,000 in rehabilitation, he said. It was part of a pool of about 20 nonperforming loans sold by Desco.

"Anything income-producing like apartments are moving quickly if they're on the market," Hildreth said. "There's not a lot of multifamily on the market, and if it does come on the market, it gets bid up."

Hildreth said he's seeing an overexuberance in the marketplace that could create another pricing bubble in Las Vegas. Because inventory has dwindled to preboom levels, properties are getting multiple offers beyond market value, he said.

Blue Marble had announced plans to build Paxton Walk, a mixed-use development in northwest Las Vegas, when the market crashed in 2008. Founder Avi Ruimi postponed the project indefinitely and focused instead on acquiring distressed projects.

Blue Marble looked at Mira Villa, the luxury condo project near Summerlin, but instead went with Terra Bella in Anthem. The original developer, Westmark Homes, filed for bankruptcy in early 2008.

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