Master plans and commercial properties expand and endure in Southern and Northern Nevada, but there’s more to the story than stucco, wood and paint. The success of such large developments is due, in part, to developers who decades ago took a gamble on the state’s growth. And while it may seem that Southern Nevada is expanding at a much faster pace than northern Nevada, it has taken decades for the area to take shape as a major metropolitan area.
But those developers know it won’t last forever. The cost of land creeps up as it becomes less available – and some experts believe that producing mega-developments in Southern Nevada will become a thing of the past.
Northern Nevada is experiencing growth, too. While the rate of population expansion is sizeably smaller than in the south, developers in the area are looking forward to some lofty developments.
Here are what some of Nevada’s top developers are saying:
MacDonald Companies is the developer of MacDonald Highlands, Sunridge at MacDonald Ranch, and newest The Canyons at MacDonald Ranch. MacDonald Companies President Rich MacDonald said, “We began buying property in Nevada as early as 1970.” At a cost of only $550 an acre, the family bought 1,280 acres. “We did think about the master plan even back in the early 1970s,” MacDonald said. “We made good decisions. Since then MacDonald Companies has developed 11 office buildings throughout the Las Vegas Valley, as well. A good developer puts a lot of thought and careful planning into their project,” MacDonald said. “It isn’t a question of whether or not a developer has been around a long time. It’s a question is of how much you care about what you’re doing.” And while MacDonald is considering another large development project, a couple of A-class buildings and other retail, he also is taking time with careful planning.
Thomas and Mack Development Group also had its heels dug into Las Vegas real estate decades ago.
Mark Bouchard, senior vice president, said the company’s emphasis is mixed-use business parks, mostly in office and office-related sites. The company is nearing completion of its 100-acre McCarran Center business park, south of the McCarran International Airport. “The future of commercial development over the next decade as we see it, will take place along the (Las Vegas) Beltway,” Bouchard said. “We think there will be a high level of interest in Southwest section of the city, south of the Beltway and west of I-15. We have interest in the area.” Developers with credentials and roots, he believes, will continue to do well, and the retail/commercial market will continue at a robust pace. But, the developer who won’t erect the building until the tenant comes – and gives himself four or five months – may have a harder time doing well in Southern Nevada’s future. “There are enough real estate developers who haven’t done their homework and who have suffered the consequences, languishing without any tenants,” Bouchard said. “Focus, strategy, capital, creativity, relationships and the ability to have a long -term time perspective are key issues for successful development here, said Colliers International Retail Division Vice President Matt Bear. “Those looking for a quick buck are quickly shown the door out of this community.”
Lake Las Vegas Resort, built by Transcontinental Development (based in Santa Barbara, Calif.) was purchased in the late 1980s.The company’s Chairman of the Board R. F. Boeddeker visited the site by helicopter – and envisioned a potential lake, using the existing terrain, said Lake Las Vegas Chief Operating Officer Brad Nelson.
“He had this vision of creating a lake similar to one he had seen while vacationing in Lake Como in Northern Italy,” Nelson said.Lake Las Vegas Resort is a 2,245-acre residential, golf and resort area with a 320-acre lake and two developments – SouthShore and MonteLago. Also planned for MonteLago is The MonteLago Village, comprised of 50 acres. A 350-room Ritz-Carlton Hotel, a 40,000-square-foot casino, a spa and condominiums. “As for the future of developing around Las Vegas, I think it depends on how BLM will sell its land,” Nelson said. “For the most part, most of the larger vacant lands left here are owned by BLM. For such large developments, I think the future is pretty limited to whatever BLM does.”
The Molasky Co. builds about 400 to 500 units – mostly apartments – each year. The Molasky Co.’s Managing Member and Paradise Development Co.’s Chairman of the Board Irwin Molasky came to Las Vegas in 1951. “I like to think I’ve also had a part in shaping the skyline of Las Vegas. Opportunity brought me here as a young man with no money, but a lot of dreams and a lot of ambition,” Molasky said. Molasky said he built the first pyramid in Las Vegas. “We built The Pyramids, where Harrah’s is now located,” Molasky said. “It was a tiny, 18-room motel.”
Molasky’s biggest concern about future development is the changing regulatory process. “A lot of people are against growth and progress, but we pride ourselves on only really big projects,” Molasky said. “People complain that some salesman told them when they were buying their home that apartments wouldn’t be located near their home. It’s the ‘not-in-my-backyard’ syndrome. Molasky says developers must be pro-active, and he seeks appropriate neighboring properties, holds focus groups and asks for the community input on his company’s projects.
The Howard Hughes Corp. Vice President of Community Relations Tom Warden remembers when Summerlin Parkway was called the road to nowhere. It is unique to have such a large a piece of privately-held land so close to a metropolitan area. “I’m not sure you could find such a thing in the United States – and certainly not here anymore,” Warden said. “We have 22,500 acres directly adjacent to a metropolitan area.” The Howard Hughes Corp.’s newest project, Summerlin Centre, will consist of 1,300 acres. The area will be the geographical center of Summerlin, but is also designed to serve as the center for retail, employment, entertainment and residential with high-density living. Dan Van Epp, president, The Howard Hughes Corp., spent 20 of his 25 years in the building business on master plans. Summerlin’s residential development will be complete around 2010. Its commercial building will be complete around 2015. “Howard Hughes in 1950s obtained this 25,000 acres of Nevada desert,” Van Epp said. “No one ever thought of the master plan concept until the mid-1980s.” The Howard Hughes Corp. also is keeping a close eye on federal land (BLM) disposal across the Valley.
Pulte Homes Corp. spends a lot of time strategizing on where to build. The company began building in Southern Nevada in 1992 – during the building boom. “We can’t be in a market where there are a lot of little builders – we have to stay in markets where there are larger developers,” Marketing Director Lynn Gallindo said. “They do a lot of research and that’s what makes sense for us.” “Other parts of the country might see a downturn,” Gallindo said. “Everything we read and analyze makes it sound like (the economy) may be a little flat, but Las Vegas will still be good. The market is still comparatively affordable to other markets like Southern and Northern California and Denver area.” There are no plans for Pulte to slow down. The company’s five-year growth plan will continue its momentum with building in Summerlin and other master-planned communities including Southern Highlands. Pulte also hopes to be a player in the 7,500 acres being developed in North Las Vegas.
“This is a time of exciting development activity for our company,” said John Kilduff, president of American Nevada Corp. “The focal point of our current commercial development over the next few years is concentrated primarily in 350 acres surrounding the intersection of the I-215 Southern Beltway and Green Valley Parkway.” The company’s plans call for 2.3 million square feet of office space; 500,000 square feet of retail; and a resort hotel/casino, set to open in December. “Additionally,” Kilduff noted, “our most aggressive project is the development of an urban village, being built by the city of Henderson on 40 acres of land, which we donated, to the city.” Phil Peckman, chief operating officer of The Greenspun Corp., (the parent company of American Nevada) added, “All of this development is part of the plan (that) Barbara and Hank Greenspun envisioned more than 50 years ago. We’re proud to be part of the growth of Henderson and grateful to the city representatives who have been instrumental in helping us create a master-planned community where people can truly enjoy living, working and raising their families.”
In the North
Perry M. Di Loreto is a managing member of Nevada TriPartners LLC, developers of Damonte Ranch, a master-planned community in Reno. The area comprises the majority of the Truckee Meadows area. “In the Damonte Ranch project, we’re the master land developer like Hughes was for Summerlin,” Di Loreto said. “This is the largest project I’ve ever been involved with – almost 2,000 acres.” Among TriPartners’ retail accomplishments in the area are an office complex with tenant ProLogis and a distribution facility for Barnes & Noble.com. Will Reno ever be primed for large developments like Las Vegas? “I think our growth here has been well-planned, the market has been steady, the growth is steady, but we do have geographic limitations,” Di Loreto said. “We have infrastructure, air quality and water limitations, too, so I think our process has addressed those issues.”
Loeb Enterprises of Nevada LLC’s major development is Wingfield Springs and the Red Hawk Golf Course in Sparks. Terry Reynolds, general manager of Wingfield Springs, says the company is annexing another 140 acres to round out a total of 1,480 of master-planned area. Included will be more than 300 custom lots; builder parcels (super pads) available for sales to builders; townhomes and semi-custom homes. “There is a significant amount of infrastructure put in (to the development),” Reynolds said. “While the North Valley in Sparks hasn’t grown like Green Valley in Henderson, we see it as an area that eventually be like Green Valley in Henderson; or like Scottsdale (Ariz.), with trails, a well-planned network system, business parks and small, but high-end industrial and residential properties and tract development all the way up to custom homes. “We have so much room here, and a 25-year-growth pattern in both Reno and Sparks,” Reynolds said. “We’re not growing as fast as Las Vegas, but it’s still pretty steady in Truckee Meadows. We’re taking advantage of Interstate 80 as far as business development goes.” “Development is successful when it serves a need in the community,” Bear added. “Whether it be for business or houses, everything that is built is a reflection of what the consumer, municipality and the developer believes is needed.”
