To be honest, it's not unusual to see a lot of foreclosures anywhere these days. :)
In particular, condo units had a number of investors. Many were hoping to flip and got caught in the downturn, just as they did with homes back when financing was easy. As lending tightened, condos were often hardest hit from their level of investors, making closing even more difficult. As an example, MGM has announced they will offer adjusted pricing and in-house financing to aid buyers with their City Center units coming online in the next few months.
So for current Las Vegas real estate purchasers it's become a silver lining. Some amazing bargains and opportunities for the savvy buyer.
Just to make you aware, Newport Lofts had been foreclosed from their construction financing last year. As Heather mentioned, the lender, through a subsidiary, was attempting to sell the units at auction at the end of Aug. and wasn't overly successful. A number of units remain in their inventory.
Corus Bank was the lender, and in an interesting recent development they were seized by the FDIC. Reports indicate that the FDIC plans to sell off all their remaining assets though a private placement transaction within the next 30 days. It's unclear at what pricing they will be sold at, if the new owner will in turn break up the assets and sell them off to other investors, and what if any effect that could have on unit pricing.
Soho also received some of it's financing through Conus, but at the moment it doesn't appear it is in the same situation. Soho was completed before Newport. That could possibly explain some of the difference in both projects with the number of foreclosures or unsold units in each building. Market timing can always have an affect.
Hope that helps, and if you need any other assistance just get in touch.
I look forward to hearing form you soon,
Pros - great loft concept, roof top pools, fitness center with no crowds, great location downtown, buy for less than they cost to build, no litigation so they can be financed
Cons - No guest parking, HOAs are a bit high, surrounding areas still a bit rough although they are still working on the new transit center downtown.
I was just there 2 days ago and would be happy to answer any other questions you may have.
Rosen & Company West