Las Vegas condo project in trouble

Spanish View Towers broke ground in early 2006 for three 18-story buildings that would house 444 condominiums in total, ranging in size from 1,835 to 9,500 sq. ft. and priced from $795,000 to $8 million. It was going to be a luxury high-rise development located at Buffalo and 215. To date construction has only reached the first floor but even that remains unfinished. It obviously is experiencing serious trouble.

What it looks like is that the timing was its worst enemy. Residential real estate market in Vegas was getting soft around the ground-breaking time and has been on a downward slope ever since. At the same time construction costs were rising substantially, from concrete to window glass, and would put a double vise on a project that was operating on the edge. Local observers know that there probably is no existing financing right now to take the project forward.

Many bills have gone unpaid in the recent past, causing several mechanics liens to be filed against the development, running in the 10s of millions of dollars. Not only that, but home buyers who put down cash deposits for units are suing to get their money back. The legal pressure is mounting as well.

If there is no additional financing in a matter of days, the developer is forced to file for bankruptcy protection, say valley experts.