Push is afoot to finish work on Element Hotel in Summerlin

R&O Construction is pushing to finish the 123-unit Element Hotel in the master-planned Summerlin community for developer LaPour Partners in November.

The four-story "boutique" hotel is a new product for Starwood Hotels' Westin brand; 93 of them are planned across the nation.

"The hotel appeals to business travelers who want to be productive in a relaxing atmosphere," R&O project manager Jeff Howcroft said. "While they're similar to some of the extended-stay projects we've done before, they have much higher-end finishes."

The $25 million Element will have 27 one-bedroom suites, 11 standard king suites, 52 king studios and three conference suites with a living room area where people can meet and a separate bedroom. All units have kitchenettes with refrigerators and stove tops.

The 1.7-acre site was flat and easy to work on, though R&O had to overexcavate, recompact and install some engineered fill to accommodate the concrete slab foundation, the project manager said.

PENDING SALES: The number of homes identified as contingent or pending sale totaled 7,447 as of Sept. 22, the highest level in well over a year, Las Vegas-based Applied Analysis reported.

Contingent units are properties that have been contracted for sale but are contingent upon some other action taking place. Pending units are typically waiting for customary closing procedures.

About 49 percent of the 4,368 contingent units are short sales, while 7.9 percent of pending units are short sales, or sales at less than the mortgage owed, which means they need lender approval.

DEFAULT FILINGS: A foreclosure report from It's A Fact showed 403 notice-of-default filings in Clark County on one day, Sept. 15.

Tim Kelly of the Brodkin Group of ReMax Pros found more than 500 NOD filings on Oct. 9.

He said there's going to be a "small avalanche" of new foreclosures coming.

RESIDENTIAL LOTS: As market conditions continue to soften, even home builders who have already filed bankruptcy are "licking their chops," anticipating what will certainly become the land-buying opportunity of this generation, John Burns of John Burns Real Estate Consulting said.

In preparation, they're lining up new equity partners and waiting for banks to sell their assets.

For various reasons, the banks have been able to avoid declaring a lot of construction loans delinquent, presenting ongoing frustration for the opportunity funds, Burns said.

The acquisition focus is on the best locations with some distress, Tim Sullivan of Sullivan Group Real Estate Advisors said.

These locations are likely to have fewer future price reductions and less market instability, generally with fewer foreclosures. Underwriting can be more aggressive and closer to what a seller needs.

"Further, a few builders tell us they are actually running out of lots in some close-in locations," Sullivan said.

APARTMENT MARKET: Apartment developers are forecast to bring about 2,600 units to the Las Vegas market in 2008, down from 2,700 units last year, Marcus & Millichap, an Encino, Calif., real estate investment services company, reported in its third-quarter market update.

A slowing economy and competition from new supply are expected to drive vacancy higher by the end of the year. Vacancy was at 7.4 percent in the third quarter and is forecast to rise to 7.6 percent.

Asking rents are projected to rise 2 percent to $871 a month this year, while effective rents (including concessions) will edge up 0.7 percent to $825 a month.

Last year, asking and effective rents increased 3.0 percent and 3.3 percent, respectively.

CAPITAL FUND: Highland Capital, which has land holdings at Inspirada, Kyle Canyon and Lake Las Vegas, has told investors that it's closing its Crusader fund, CNBC reported.

Highland said it was winding down the fund in "an orderly fashion," citing the "unprecedented market volatility and disruption to the financial system over the past 60 days and especially within the last two weeks."

Hedge funds had their worst month ever in September with average losses of 6.2 percent, an estimate by TrimTabs Investment Research shows.

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