Real Estate · The Strip
Portfolio of 75 hotel-condo units at The Signature at MGM Grand and Palms Place hits market at about $27 million
A Berkshire Hathaway HomeServices agent is marketing 75 hotel-condo units near the Strip, assembled by a late Iowa investor, in what he calls the largest bulk condo offering he has seen in years.
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What happened
A portfolio of 75 hotel-condo units in two towers near the Las Vegas Strip is being offered for sale as a single package, the Las Vegas Review-Journal reported. Frank Napoli, an agent with Berkshire Hathaway HomeServices Nevada Properties, announced that he had been hired to sell the collection.
Napoli told the Review-Journal the asking price is about $27 million. He described the offering as the biggest he has seen come to market in years.
Where the units are
Nearly the entire portfolio, 73 units, sits in The Signature at MGM Grand. The remaining two units are in Palms Place, according to the Review-Journal.
The Signature at MGM Grand
The Signature is made up of three towers next to MGM Grand, on Harmon Avenue near Koval Lane, just east of the Strip. Napoli pointed out that the complex is near the Athletics' $2.1 billion baseball stadium, which is under construction.
Palms Place
The Palms Place tower is on Flamingo Road, about 1.5 miles west of the Strip, and sits next to the Palms hotel-casino. Napoli said neither property has a casino, but both are close to resorts offering gambling, nightclubs, restaurants and live entertainment.
Who owned the portfolio
According to Napoli, an investor in Iowa put the collection together over time, paying around $24 million combined. Napoli confirmed that the owner died last year at age 81 and said he is working with the family on the sale.
How a buyer could use the units
Napoli explained that a buyer could earn revenue through hotel bookings or Airbnb rentals and eventually sell the units. The Review-Journal described properties like these as hybrid hotel-condo towers.
How it compares with past bulk condo deals
Las Vegas has seen bulk condo sales before, but the Review-Journal noted that some of the most notable deals involved regular residential high-rises rather than hotel-condo towers. Those purchases also came after the local real estate market had crashed and property values had dropped sharply.
The Review-Journal listed several examples from that period:
- In 2012, two investment firms partnered to buy 427 condos in Veer Towers, on the Strip, for $119 million.
- In 2013, three firms teamed up to acquire nearly 1,300 units in five Las Vegas condo projects for $237 million.
- In 2015, an investment firm bought 64 units in Sky Las Vegas, on the north end of the Strip, for about $18 million.
Prices then and now
In the Sky Las Vegas deal, the buyer paid about $190 per square foot, while some other buyers in the same building had paid $600 to $700 per square foot before the market fell, the Las Vegas Sun reported. Napoli said those bulk purchases happened when the market had been destroyed.
Since then, Napoli said, other bulk offerings have come up for sale, but they included no more than 15 or 20 units. Readers following the condo market can find more coverage in our real estate section, including recent reporting on high-end condo sales in Henderson.
What to watch next
- Whether a buyer emerges for the 75-unit portfolio, which Napoli is marketing with the late owner's family at an asking price of about $27 million.
- Progress on the Athletics' $2.1 billion baseball stadium, which the Review-Journal described as under construction near The Signature.
