TNR Holdings invests in downtown revitalization effort

Although TNR Holdings Inc. is new to Las Vegas, its principals are familiar with the real estate investment opportunities the city offers, according to company President Tan Nguyen.

The venture capitalist invested in residential properties locally in 2000 and 2001, then was diverted to other markets, chiefly Southern California.

He said Nevada's economic growth from late 2002 through 2003 prompted him to establish TNR Holdings earlier this year. Nguyen has since examined numerous investment scenarios throughout the valley.

"The real estate market in Las Vegas really changed in the past couple of years," he said. "Residential property, while still a good investment, is no longer a great investment because of all the people who have purchased homes in the hopes of renting them and, of course, building equity at the same time.

"The abundance of speculation has driven up the prices of single-family homes to the point that an investor can't find someone to rent a home at a price that would barely cover costs in most cases," he said. "These people forgot they have to compete with apartment rentals, which are offering incentives to fill their units that are going for half the cost per month of a home rental in some areas."

As a result, Nguyen is focused on commercial ventures. He said his interest was piqued by Las Vegas Mayor Oscar Goodman's vision of a revitalized downtown.

"We talked with the mayor's people about the acres that are ripe for development in the old railroad yards area," Nguyen said. "Although we believe in the development of that area very much, it did not fit in with our short-term plan. But we did see other areas that did."

One such area is on Las Vegas Boulevard near the site of the SoHo Lofts, downtown's first high-rise condominium development. Ground was recently broken for the 15-story tower at Hoover Street that will comprise 120 units situated above retail stores and restaurants.

"I'm counting on the fact that the residents of these downtown high-rise developments will want a place nearby that will bring upscale support systems such as private banking and fine dining to the area," Nguyen said. "The downtown core as it is now offers few of these features that match the caliber of upper-middle-class residents. I know there will be a demand for it."

TNR Holdings is in the process of closing on a nearby parcel, which is planned to be developed in a joint venture with Silver Development LLC of Chicago. The first phase, Nguyen said, will be a 15,000-square-foot building with a variety of retail shops. The second phase will add another 10,000 square feet of shops.

"I know that downtown Las Vegas will undergo a renaissance. We are extremely excited about this project and feel it will begin to bring the necessary upscale infrastructure to support residential developments," Nguyen said.

"It will happen here as it's happening in Los Angeles. Until recently, Los Angeles was a ghost town after the close of the business day. That city is embarking upon an ambitious project to support high rises that will attract middle-class citizens to live and play in the core."

Nguyen's investment firm, The Monarch Group Ltd., is based in Los Angeles and is the parent of TNR Holdings. Although he continues to do business in Southern California, Nguyen remains focused on Nevada.

"We want people to know we're here, and we believe in the viability of Las Vegas as a growth market," he said.

Rhiannon "Rhia" FitzPatrick is co-principal of TNR Holdings and serves on its board of directors. She and Nguyen plan to build a custom home in the southern valley.

"By living here, we will be able to see opportunities that outside investors wouldn't have access to. We're here in Las Vegas for the long haul. We know this is a land of opportunity and we want to be a part of Clark County as it's poised to exceed the population count of 2 million," Nguyen said.

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