ON THE VERGE OF VANISHING

Still no progress on mid-rise project announced in 2007

April 15, 2008 - The Verge, a planned mid-rise residential project in downtown Las Vegas, now appears to be on the verge of disappearing. Developer Verge Living LLC first announced plans for a $135 million, 296-unit condominium complex at the northeast corner of Bonanza Road and Main Street in February 2007. Verge Living held a lavish launch party the following month that attracted a large crowd, which included Las Vegas Mayor Oscar Goodman, and plenty of attention. The 2.7-acre mixed-use development calls for a nine-story, 350,000-square-foot brick-and-glass building with two fitness centers, pools and spas and a pet park. The mid-rise, designed by architect Dennis Rusk, has two levels of underground parking with 35,000 square feet of commercial space, including a rooftop restaurant, and about 40 offices comprising 10,000 square feet for residents' use only.

The project was scheduled to break ground in summer 2007, offering one-, two-, and three-bedroom condominiums with prices starting at $149,900. But summer came and went. Nothing happened. Verge officials later held a groundbreaking in early December, after replacing their initial contractor, Building Consensus, with Henderson-based TWC Construction.

Five months later, the site remains bare with no trace of construction progress. TWC Construction has since confirmed they are no longer involved with the project. Calls to Verge President Darren Dunckel seeking comment were not returned. A phone recording at the project's sales office says it's "temporarily closing" to move its operations to 718 N. Main St. The taped message didn't give an estimated reopening date.

Prudential Americana Group, High Rise Division, the project's sales and marketing representative, filed for Chapter 11 bankruptcy in 2007, spelling more trouble for the development's future.

Verge was originally expected to finish construction by summer. That timeline now appears impossible. The city of Las Vegas has confirmed that no permits have been issued for the project's construction. During a December groundbreaking ceremony, Verge officials adjusted the project's completion date to 2009. But nothing can start until overhead power, cable and telephone lines are moved.

Dunckel previously claimed that 80 percent of the residences were sold out and had gone to "hard contract," which means the 5 percent down payment is nonrefundable. A construction loan or institutional financing has never been announced. Officials previously claimed $14 million had already been invested in the development, but that amount would account for only 10 percent of the project's projected price.

"The luxury condominium market is facing challenges with a slowdown in demand and number of projects in the pipeline," said Brian Gordon, a principal with Applied Analysis, a Las Vegas financial consulting firm. "A longer presale phase generally makes it more challenging to generate sufficient sales to move forward in a declining market."