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Going up downtown

Developer positions Fremont Manor Townhomes as affordable housing

Developer Mike Flores has faith in the rejuvenation of downtown Las Vegas. He has invested more than $1 million in the conversion of Fremont Manor Townhomes to affordable housing.

The three-story, 36-unit property at 1841 E. Fremont St. is surrounded by littered lots, cheap motels and a 7-Eleven convenience store at Bruce Street.

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  • In August, he plans to sell 500-square-foot, one-bedroom condos priced from $99,000, or about $200 a square foot.

    "If you look at square footage, that's a negative," Flores said as he showed a finished model unit. "However, if you look at dollars and cents, 10 percent cash-on-cash (return) is a good deal."

    Flores estimates that a unit can be rented for $800 a month, providing $9,600 annual income on a $99,000 investment. With write-offs for taxes, insurance, interest and homeowners fees, the investment return is close to 10 percent, he said.

    The 22-year-old building has been reconstructed from the roof to the slab, including plumbing and electrical work, and a new elevator is being installed, he said. The units have granite counters, ceramic tile floors and new carpeting, doors, appliances and dual-pane windows.

    "Everything is brand new, the washer and dryer, new roof, new refrigerator," Flores said. "I'm pricing these to sell, not to hold out and get the highest price."

    The parking lot is gated and a security system is in place at the entry door with intercom monitors in each condo.

    "That's good because you'll need it in that part of town," housing analyst Larry Murphy of Las Vegas-based SalesTraq said.

    Murphy said the average price of foreclosure homes in Las Vegas was $110 a square foot in June.

    "So $200 a square foot ... where does the word 'affordable' come in? People that live in 500 square feet would probably rent anyway," he said.

    Fremont Manor is about a block from Fremont Street Lofts, which are selling for $290,000 to $350,000 for units ranging from 1,800 square feet to 2,200 square feet. SalesTraq reported 20 closings at Eleventh Street Lofts, a similar product a few blocks away, at a median price of $325,000.

    Flores, who gained notoriety when he refused to sell his Villa de Flores apartment complex on the Strip to Steve Wynn for development of Treasure Island, said he's bought and sold 28 properties worth about $100 million in his 40-plus years here.

    Fremont Street is becoming "the place to be," he said.

    Flores plans to offer Federal Housing Administration loans with no money down for first-time home buyers at Fremont Manor.

    Contact reporter Hubble Smith at hsmith@reviewjournal.com or 702-383-0491.



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    laguna wrote on July 23, 2008 09:53 PM: Hey Homoless,
    'just clean up the neighborhood'
    gee what a great idea, too bad nobody is as smart as you and did not think of such a unique idea. The city will thank you and I am sure they never thought of it. If life were only as simple as your mind.


    Positive One wrote on July 23, 2008 04:00 PM: I have been to the units and what Mike is doing is a great thing. You need to start somewhere in re-building a community and he has put his money where his mouth is....go see for yourself before you throw stones.


    hilobomacaine wrote on July 23, 2008 12:24 PM: how many crackheads can you fit in 500 sq/ft?


    I AGREE WITH LAGUNA wrote on July 23, 2008 10:46 AM: And how exactly do you "clean up the neighborhood?" Isn't that what he's doing?

    Yes, there are some homeless, drugs, and prostitutes - but that's part of life in any city. And if you think those things aren't in your neighborhood, you are truly living in your own little world.

    This type of housing is exactly what Las Vegas needs - right in the center of the city, where you can walk to shops, restaurants, and bars - walk to your downtown job or take the bus to your job on the strip...it makes a lot more sense than living out in the burbs where you have to hop in your car to do anything and everything...And because you can either walk, ride a bike, or take a bus everywhere, it's worth it to pay a little bit more for the location, because now you don't have to worry about gas prices, car insurance, or even a car payment!

    And by the way, typical closets are only about 24-30sf, unless it's a walk-in - then it's probably around 50sf. That's why people don't sleep in a closet. 500sf is perfect for people who are single or married, no kids - not a lot of "stuff," not sure how long they're going to be in Vegas, don't want to purchase, and want to keep costs down (why pay to cool a 1600sf house if not needed)


    homeless in Las Vegas wrote on July 23, 2008 09:54 AM: Well Laguna, the first thing I would do to revitalize downtown is clean up the neighborhood. Would you live in an area where you are concerned for your well being? I understand every neighborhood has its drawbacks but this one has many to the tune of prostitution, drugs and the violence that goes with same. Am I being negative or realistic? Then to pay large sums for your space. Hardly the sanctuary from the criminal elements.


    Trisha wrote on July 23, 2008 09:35 AM: Condo communities with absentee owners and all tenants....sounds like a nightmare in the making !!!! Another greed monger. These places should have stayed as apts.


    laguna wrote on July 23, 2008 09:02 AM: The two previous writers obviously know how to re-vitalize downtown, please tell us since you never approve of other attempts. Thats right, you have no clue. It must suck to live life as negative as both are.


    homeless in Las Vegas wrote on July 23, 2008 08:33 AM: Fremont Street is becoming "the place to be," he said.

    Perhaps the place not to be. 500 aquare feet of liveable space. Why not sleep in a closet? Who, in their right mind, will pay $800.00 per month rent to live in a closet?
    Keep talking Mike, you might convince yourself.


    br wrote on July 23, 2008 06:52 AM: Same old song banged out on a beat up old piano. There is still no infrastructure to support normal living downtown. The unit price on such small room is pretty steep. Add utility cost and you are looking at about a $1000 a month. The typical tenant is most likely a single guy working at a casino downtown. He probably would not own a car. on site security may be good, but once you are out on those streets, especially at night, you are in a jungle. A woman in that situation is in even more danger.
    The developer should be able to fill those 36 apartments in spite of all the other cheaper area units. After a couple of years his will be just as sleazy.

    Downtown re-development is an unfunny joke. Political leaders keep subsidizing a buffet of projects for their buddies with our tax money. Every once and a while the blind squirrel finds a nut. That's the law of averages, not skill.