Foreign investors bet on Las Vegas

Developer and Israel native Sam Ventura saw the economic potential of Las Vegas when he made it his home 17 years ago. In the past few years, several of his former countrymen have begun to explore the city's opportunities as well.

Civil strife in Israel has ruined the tiny nation's economy and discouraged investment. With the prospects of peace pessimistic, many Israeli businesses have looked abroad for places to put their money to work and some have found what they believe is a promising capital venture: commercial property in Las Vegas.

Ventura said Israeli investors began contacting him about three or four years ago for advice on commercial properties.

"We're not looking for it. They're finding us," Ventura said. "They find information over the Internet or through connections."

Known through his work with the Jewish Federation, Ventura's reputation and experience as a general contractor in Southern Nevada made him the ideal consultant and Johnny-on-the-spot for Israelis actively seeking real estate investments.

"We receive many groups of investors, many of them developers, who want to invest outside the country to make their money grow," Ventura said. "Las Vegas is popular around the world because of the investment opportunities that are open to everyone."

Since then, Ventura has regularly hosted investors and potential investors who come shopping for retail, industrial, commercial and apartment properties.

"There's a lot of money available for investment (from Israeli businesses) because the economy has gotten so much worse, especially in the past six months," he said. "I'd like to say there's not enough property in town."

The window of opportunity for Israelis opened in 1998 when the nation loosened its restrictive banking laws to make it easier for its citizens to transfer currency outside the nation. Bank transfers make the process easy and low interest rates in the United States make it enticing.

With the pipeline open, Ventura makes annual trips to Israel, hosts visitors and advises on purchases, then turns the clients over to his son and daughter, Alon Ventura and Galit Rozen, who are broker-owners of RE/Max Commercial Professionals.

Since last November, Rozen and the younger Ventura have closed three deals involving Israeli investors purchasing property in Southern Nevada, the latest being the Chapel Hill Apartments at Russell Road and Interstate 215 for $23 million. Before that, two separate groups purchased an auto mall and a medical office complex.

Rozen, who has been a commercial broker for about nine years, said the investors are fairly savvy, but not especially selective.

"They're not looking for great deals. They're paying market value," she said.

The deals are unusual, Rozen said, in that the clients come armed with an investment budget, rather than a particular property in mind.

"The large businesses are looking for places to put their money that are safe, where they can put it to work," she said.

That safety comes from trust. Sam Ventura said investors know of him through his standing in the Jewish community as a volunteer and contributor.

From there, the deals become personal. Ventura and his family host their visitors for Friday night dinner, speak their language, and sometimes even join them in their investments.

Rozen, herself proficient in Hebrew, finds heritage can be a plus, but solid professional skills are a must -- as they would be for any absentee owners. Cutting costs and creating value are as important as they are with any investor. Rozen and Alon Ventura manage nonresidential properties personally and thus deal with their clients on an ongoing basis.

The continued involvement and goodwill help to draw interest in future investments.

"We're seeing the light at the end of the tunnel where there could be more and more deals like this," Rozen said.

One thing they don't have to sell is the city itself.

"People (in Las Vegas) don't even know how strong the reputation of Las Vegas is all around the world," Sam Ventura said. "You mention Las Vegas to someone (abroad) and people will say, `Wow, what a beautiful town.'

"Go around the world and you'll find just how powerful the Las Vegas name is."

Such was the case for one of Ventura's first clients, Roni Amid, the buyer of Chapel Hill Apartments, which he plans to convert to condominiums. Amid said even from Israel, "the numbers on Las Vegas" makes the city shine from halfway around the world.

Amid is so bullish on the local market that he has decided to move his family to the valley. He has started a company that will make it easier for others around the world to invest in the Las Vegas real estate market.

"Vegas is Vegas. It's one of the sexiest places to sell," Amid said. "I very much believe in the foundation of the economy in the city."

Real Estate home