Corus Bank, Hi Rise lender fails
The recent downfall of the Corus Bank in the Las Vegas Market was caused by the bad investments it made. According to the reports, the shares of Corus plunged down 98% from their 52 week high of $5.23 per share. Regrettably, last September 15, the Corus was delisted from the Nasdaq National Market.
According to the reports, the turmoil in Las Vegas Valley’s high rise market continues because of price resets in order to meet the depressed condition in this product. With a low purchase rate, some new owners can take advantage of it and make a very good profit with sales at the foreclosure price. This summer, the median price of the Las Vegas luxury condominiums was $386,500 , which is 25% lower than last year.
Due to this, The Starwood Capital Group recently purchased several high-rise properties in Las Vegas through U.S. Federal Deposit Insurance Corp.’s asset auction of Corus Bank, a unit of Chicago-based Corus Bankshares. In the past years, Corus Bank supplied more than $400 million worth of loans for Las Vegas Valley condominium developments, many of which didn’t reach full potential. Based on the reports, this is an opportunity that may result in some quick price adjustments thought Las Vegas Valley. This deal will more likely have a huge effect on Southern Nevada’s luxury condominium market because of the scope and scale of Corus Bank’s local financial participation.
Local projects financed by Corus include Meridian ($111.3 million), Platinum ($87.6 million), Loft 5 ($56.5 million), Juhl ($106.2 million), Newport Lofts ($67.1 million), Panorama Towers ($236.3 million), Village Green ($60 million), the Residence Las Vegas ($56.8 million), Soho Lofts ($49.3 million), Copper Canyon ($43 million), Boulders at Lone Mountain ($40.2 million), Verano ($39.5 million) and Spanish Palms ($28.2 million) Streamline downtown and One Las Vegas on the South strip.