The Bureau of Land Management (BLM) held an auction last Tuesday, December 2nd, and sold hundreds of acres to dozens of parties who participated in the auction. Notable builders and upstarters jumped in to snatch huge parcels of land across southwest Las Vegas. This scuffle to purchase huge land is to sustain the demand for new homes.
The auction is a statement that showed confidence in the Las Vegas market. The solid response from the builders puts an indelible stamp of approval on Las Vegas real estate market. John Restrepo from RCCG Economics said, “…there’s stabilization and a shortage of well-located land in the valley. We are a land-constrained market in many ways. These folks have enough confidence in the market that they will invest at the right price.”
The auction was dominated mainly by developers and homebuilders, unlike back in 2005 when many of the bidders were individual investors. The 516 acre auction is considered to be the biggest land sale since 2005, when 440 acres were sold by the bureau. Not only did last Tuesday’s auction sell more land, but it’s more successful in terms of revenue. It was able to fetch $49.7 million compared to the last auction, which brought in only $24 million.
The proceeds will be used to fund various local government projects like Nevada’s public parks, the SNWA (Southern Nevada Water Authority), education and for the purchase of sensitive land.
Regular customers of such events include the Lewis Investment Co. of Nevada and American West Development. Other builders present were Pardee Homes, DR Horton, Tomblaine Associates LLC, Mosaic Land Fund Two LLC, and one unconventional buyer Ramak Roohani.
Highlights of BLMs Auction
- American West purchased 37.5 acres for $10.9 million.
- Lewis Investment Co. purchased 48.5 acres for $10.1 million.
- Pardee Homes purchased 10 acres for $1.5 million.
- DR Horton spent $2.5 million for 7.5 acres.
- DR Horton and American got into a bidding war that reached 40 rounds for a 15-acre land near Rainbow Blvd. and Wigwam Ave. American West won and snatched the land for $6 million.
The land was such a hot item because it was the only parcel of land that was considered prepped and ready for housing.
- The biggest chunk of land went to Tomblaine Associates LLC, who purchased 160 acres for only $5.15 million. The low price has something to do with location issues. It would take millions of dollars to make the necessary improvements and make it a part of Southern Highlands.
- Mosaic Land Fund Two LLC bought 22.5 acres for $4.74 million.
- Ramak Roohani, a 21-year old former high school soccer star player bought 5 acres for $800,000.
If you’re wondering whether there’ll be more opportunities in the future such as this one from BLM, it’s not yet certain, but with rising homeownership rates, it will definitely push demands up for the real estate market.
Are you interested in purchasing real estate property in Las Vegas? Have you found the kind of property you’ve been looking for? Reach out to us. Our team of real estate experts know the Valley by heart and can definitely guide you to the ideal spot you’re looking for. Contact us today!