High-rise resales: Penthouse for sale

Joe Scala's Turnberry Place condominium may have the best view of any home in the valley.

From the balconies of the 40th-floor penthouse, a spectator can see "from Wet 'n' Wild to Circus Circus" and beyond, all the way to the mountains -- a near-complete 360-degree view from the north end of the Strip, just south of Sahara Avenue. Rising even higher than many of the nearby resorts, the home offers an island of solitude amid the faint din of the 24-hour party district below.

"It's a great place to come and watch fireworks," listing agent Paul Peterson said. "This is the creme de la creme. It has the best view of all (in Turnberry Place)."

Scala even opted to remove select interior walls to enhance the view. In addition, the home includes a pool, raised spa and outdoor fireplace, two stories and several balconies.

The auto dealership owner, however, has never lived in the home since he purchased it in 2001. A former Chicago resident, Scala appreciated the high-rise lifestyle, according to Peterson, but has decided to sell the home. It is listed at $4.9 million.

Peterson said the market for such a home is probably out of town, and may possibly come from out of the country, perhaps a corporate executive or an Asian high-roller.

"You're looking for that particular person," he said, someone who especially likes the nightlife of Las Vegas, wants the services and amenities associated with vertical living and, of course, can afford several million dollars for what may be a second home.

"For frequent Las Vegas visitors, it's close to major resorts and close to an international airport. (McCarran International Airport) has connections to almost anywhere. This is truly an international city," Peterson said.

Penthouses are perhaps the most exclusive market in Las Vegas housing. Until recently, there were only eight: the 28th-floor units at the 29-year-old Regency Towers, located within the Las Vegas Country Club. (Lower priced penthouses are located on the top floor of the Wimbeldon Tennis Club, a mid-rise building on Swenson Street.)

That changed when Turnberry Associates and the Molasky Cos. announced separate projects in 1998. The number of penthouses jumped to 18 with the completion of the Park Towers high-rise development at Hughes Center and the opening of the first two of four planned towers at Turnberry Place. Six additional top-floor units are under way at Turnberry and two are planned for the new Metropolis high-rise on Riviera Boulevard.

Several other vertical developments have been proposed in recent years, including Madison Towers, a project on hiatus from Turnberry Associates. Other developers have floated proposals to place multi-story projects in the corners of the valley: MacDonald Ranch and Anthem in Henderson, Summerlin and Queensridge in the western valley. Yet another proposal had Donald Trump building towers on the site of the New Frontier hotel.

As an investment, Scala's purchase appears to have been a wise choice. In 2001, he paid about $2.54 million. The current list price factors in no improvements -- the home appears the same as it was the day it was completed.

Scala's home is listed on the multiple-listing service, but Peterson expects a more active approach may be needed, including selective advertising and face-to-face solicitations.

Working in Peterson's favor is the active development of the property. With tower three under construction and tower four on the drawing board, visitor traffic is still strong and resales offer homes that are ready for move-in.

Resales are important to an active developer as well, according to Bob Glau, resale manager for Turnberry Place. With more than 360 completed units at the property, resales are a full-time job for Glau and his partner, Andrea Tomich. They are up against resales at the 200-home Regency Towers and the 84 units within Park Towers in the Las Vegas luxury high-rise resale market.

The market is much larger than that, however, because they are competing with comparable properties in other cities and, to a lesser extent, other countries.

"It helps (Turnberry Associates) to help resales," he said. "If you don't have a resale division and you don't worry about that market, you lose interest among your potential clients and you don't serve those people who are looking for a home."

Glau and Tomich say about 13 percent of the homeowners within Turnberry Place have their home listed for sale, less than the national average for an existing residential development.

"You probably have three submarkets (at Turnberry Place)," Glau said.

They are: units priced from $650,000 to $2 million, those priced higher, and those priced lower. The middle price range sells quickly: on average, the homes are on the market for about three months, according to Glau. The upper and lower ends take longer, the former because there are few buyers in that price range and the latter because they must compete with the superior views of higher units.

Glau and Tomich work exclusively on resales. Combined, they have had 23 resales this year ranging from $440,000 to $1.99 million. Their priciest listing is $9 million.

Tomich said they market services and lifestyle as much as a specific home, targeting people who enjoy the freedom to come and go on a whim, like to be close to the action and want services available to handle all the details.

"High-rise living is a lifestyle choice. If you live in a single-family home, you have people you have to hire to maintain it," Tomich said. "Here, we have association fees but when you leave, you lock the door and you're gone, no landscape to worry about or anything else."

The ease of care makes the lifestyle popular among second-home buyers and others who are on the road frequently, such as entertainers. Nearly 80 percent of units at Turnberry Place are second or third homes. Regency Towers also includes several celebrity owners, including George Carlin. All such properties maintain stringent security measures.

Tomich said decorating makes a difference, too.

"We're dealing with a whole different market in the resale division. We have units that are completed and these are people with very specific tastes. This can have a bearing on how quickly a unit sells," Tomich said.

"I have units that are exactly the same size where price difference from $530,000 to $820,000 was most directly affected by how the buyer liked the way the home looked. The lighter, the brighter it seems, although some of our residents have done some far-out things."

Glau said the local high-rise market has weathered the weakenednational economy well because of a favorable economic and political climate in Nevada -- something the out-of-town ad campaign is quick to point out in magazines such as Elite. Low property taxes and no state income taxes give local properties an edge over their rivals in other cities. In addition, Las Vegas is still seen as a bargain among luxury-home buyers.

"Las Vegas fares well against other cities, especially in the softer economy since people in other cities want to avoid rising taxes," Glau said.

Cindy DellaValle, director of sales at Park Towers, agreed budget fiascoes in California and New York, among other states, have been a boon to the local market, especially the higher end (literally) of the market.

"We have a wonderful tax structure here in Nevada," DellaValle said. "I hope it stays like this forever."

Penthouses at Park Towers are essentially a nonmarket, according to DellaValle, and lower-level units move slowly. Eight resales, or 10 percent of the homes in the buildings, are on the market at the site, but none from the upper floors. Two units have sold this year, while three more are in escrow.

"We had a person come in who knew just what he wanted. He was willing to pay double the original price for certain units," but no owner accepted his offer, DellaValle said. "There are some people in particular units here where they have the views they want and they are never going to move."

Park Towers, she said, appeals to buyers seeking a primary home. Units tend to be larger than at other properties -- the smallest are about 2,200 square feet -- and services and fees are substantial, making the property more suitable to full-time residents.

Prices tend to be a bit higher as well. The average price at Park Towers is $3 million. At Turnberry, which has many more smaller units, the average is closer to $1.5 million.

About 30 percent of sales were to locals, including several family members and longtime friends of developer Irwin Molasky.

Other differences surface as well. Park Towers residents comprise many established business owners, whereas Turnberry Place has more personalities. City elders Molasky and media mogul Barbara Greenspun live at Park Towers; actor Lee Majors, comedian Rita Rudner and former basketball coach Jerry Tarkanian own homes at Turnberry Place.

"It's almost as opposite as two high-rises can be," she said.

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