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ManhattanWest latest casualty of crisis

Construction halted in December as liens against condo project pile up










ManhattanWest had two "savior groups" that wanted to rescue the mixed-use condo project in the southwestern Las Vegas Valley, but the developer refused to talk with them and went into hiding, one of the project's lienholders said.

More than $30 million in liens have been filed against ManhattanWest, which halted construction in December. Developer Alex Edelstein said the project is a casualty of the financial crisis and that he's looking for a group of investors to finish the project.


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  • "Alex won't call them back, won't take their calls and can't be found," said Jeff Glass of Hydro Pressure Cleaning, whose company is owed about $500,000 for seismic repair on concrete columns.

    Edelstein, chief executive officer of Gemstone Development, said he's been on vacation for the last month. He said he'd be happy to engage in discussions with "bona fide" investors who bring real offers to the table, but hasn't seen one yet.

    "I talk to groups all the time, but so far it's all hat and no cattle," Edelstein said. "They tend to want me to produce masses of material for them but are reluctant to verify any of their bonafides."

    The only assets trading hands right now are doing so at the most distressed of possible prices, and bankers aren't willing to write down ManhattanWest to that level, he said.

    "They, like me, think it will be worth much more than the market is valuing it at," he said.

    Joe DeAngelo, former project engineer for ManhattanWest, said Edelstein is brilliant with computers, having built his wealth during the technology boom in California, but knows nothing about construction.

    The problems at ManhattanWest had become quite severe when DeAngelo was hired in August, he said. Gemstone had replaced its original general contractor, Apco Construction, with Camco Pacific.

    DeAngelo said he walked the property to investigate some 58 building-code violations that had not been resolved over 18 months. He immediately saw structural concrete that was faulty and a fire safety system that was inadequate.

    The entire system had to be ripped out and replaced, said Lance Griffith, vice president of E&E Fire Protection in Las Vegas. It had been installed by an unlicensed subcontractor and did not meet code requirements.

    Griffith said Edelstein knew he would be shutting down the job and got six to seven months of extra work out of contractors. E&E is owed about $3 million, he said.

    "It's a big legal battle right now because you've got Camco and all their lawyers involved," he said.

    Edelstein should have had an accountant on site to perform a complete audit when he switched to Camco Pacific, DeAngelo said.

    "I started seeing numbers on line items ... where did this number come from? You paid $500,000 through a third-party construction service. Where did it go? My guys (subcontractors) didn't get paid," DeAngelo said.

    Glass said Edelstein had a great idea with ManhattanWest, a $350 million development that would include 700 condo units, restaurants, offices and shops on a 20-acre site near Las Vegas Beltway and Russell Road.

    "It's like a hidden jewel," he said. "It's not on the Strip."

    Gemstone topped off the nine-story Element House at ManhattanWest in August. The mid-rise residential buildings are about 80 percent finished. Economic events created an extremely difficult environment for real estate development, Edelstein said when he stopped construction.

    ManhattanWest is the latest condo project to go belly-up in Las Vegas. Last year, Mira Villa condos and Vantage Lofts stopped construction and went into bankruptcy. Sullivan Square had barely begun excavation before the project was canceled. Spanish View Towers was the first high-rise project to stop construction after partially building an underground parking garage.

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

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    Alex Jr wrote on March 12, 2009 03:51 PM: Alex is a bit self centered and really does not do a good product. We worked with him in the first one of these and thank god my name is not on it. Any bets he disappears into the night ?


    Reality Check wrote on March 11, 2009 10:29 AM: The lack of mitigating risks is the reason why our country is in the debacle that we face today. Banks took huge risks with poorly underwritten loans, contractors continued to work without being paid and risked going bankrupt on hopes of being paid, individuals used too much credit, too much credit was given by institutions, and developers got greedy and ignored all indicators pointing to a surplus of homes, lack of demand, and focused on quantity not quality.

    I only feel sympathetic to the individuals who have lost jobs in this whole mess. Other than that, I feel all of those involved have learned a lesson whether they wanted to or not. To solely blame the developer for this is unfair and irresponsible. It is sickening to see how we as a people continuously want to blame others for our failures. Everyone wants to paint this developer as an evil man but forget that he employed thousands of workers both indirectly and directly for years. He helped drive an industry that is critical to our nation’s productivity and growth. He did not twist buyer’s arms and make them put deposits down on their speculative home purchase. If you want to blame anyone, blame the buyers for not doing their due diligence, for being naive, and for being unrealistic in their expectations for returns on their investments. Heck, maybe they should research the definitions of “investment” and “risk”. Anyone in development knows that without a minimum amount of deposits, traditionally projects like ManhattanWest don’t get built. Guess where deposits come from---buyers, the common folk, us.

    I hope from this that all of us become more responsible citizens, business owners, and entrepreneurs.


    Opinion Official wrote on March 11, 2009 09:07 AM: Comment policy- I suppose you'd like to restrict opinions, except your own. Opinions should not hurt you, and facts are facts. Every Newspaper editor in the World writes about facts and opinions, sometimes in scathing ways, every day!


    Comment Policy wrote on March 11, 2009 02:16 AM: The following posters appear to have violated paragraph 2 and/or 3 of the Comment Policy and this is a request under paragraph 1 for their comments to be permanently removed:

    Ken ("throttle")
    Senior Authority on Everything
    The Almighty
    Axman
    Senior authority on everything
    Alexander Manuelle


    Alexander Manuelle wrote on March 10, 2009 09:00 PM: Senior authority is correct, he should have the final word. Almighty doesn't know what he is talking about and makes a lousy argument "piece of turd" is that the best you can come up with.

    P.s. I can't lie, I am realy s.a.o.e. I just changed my name to give more credibility to my posts, but at least I am honest about it, unlike some others. Good night all.


    Senior authority on everything wrote on March 10, 2009 08:15 PM: I said no resposne is necessary. Will you guys please read my moniker and show a little respect. I have spoken and because of my name, I am the only correct person, and my opinion is the only one that counts. Sorry, maybe on the next post you will choose a better more powerful name.


    Axman wrote on March 10, 2009 07:49 PM: Senior Authority- wow, you have an Axe too? lol. Thanks for making me laugh. I love sarcasm! Look, you read my point (LETTING ANOTHER GET TOOOOOOOO FAR AHEAD OF YOU), and you should appreciate it with the big brain that only you think you have. Are you one of the suckers? Mr. Authority of Idiocy, I suppose. FYI, I am a experienced business man.

    ps: with your proclaimed Authority, perhaps you can intervene, wave your wand, and magically resolve this construction/business dispute. You are more of a Stud than I, right? Look, I just resolved it in 5 minutes. See if you can do a better job at it. Let's here your studly proposal on how to resolve it. We are patiently waiting...


    fred t wrote on March 10, 2009 07:49 PM: Lot of really dopey comments here. I write contracts for a living, and realize that these developers went to the Sheldon Adelson Subcontractor Screw**g school of business. Since our redneck state has weak, really weak contract laws, Sheldon refused to pay the prime contractor final money on the Venetian, so the subcontractors also didn't get paid. Even though they completed their work. So now his East Coast buds learned a lesson from Sheldon, and stuck it to everybody on this project, too. It's a disgrace how they get away with it. And you can add whatever you want about what "East Coast" means. It's obvious, I grew up with them....


    The Almighty wrote on March 10, 2009 07:49 PM: Senior Authority on Everything,

    You might sound like the authority to people with lower IQs (<100) but in reality your comments are lame at best. Granted "Ax Man" is delusional and probably works at your local convenience store or local McDees. There’s nothing wrong with that, at least he’s working. Also he has the common sense to figure out that if a developer or general contractor has not paid your overdue invoices and they still want you to keep working, well you have earned every right to be screwed. Yes being owed 500k or 3M is a lot even a construction of this size. What world did you come from? Even being owed 500k can crush a small company. Ah yes, I figured it out, you're probably one of the buffoons (inspectors, plans examiners) that came from our local building departments and believe they’re GOD. It must totally suck that you think you know everything but “REALITY” hits you and you’re shown your true being. You’re just a piece of turd.


    Senior Authority on Everything wrote on March 10, 2009 06:12 PM: Ax Man. I am the senior authority on everything so I do have the authority to state that you are a moron. I know that $500,000.00 or $3 milllion may seem like a lot of money in your small world as a clerk at the local convenience store. In the construction world on these large projects bills can add up very quickly. If E&E bid the job they then become responsible for the faulty work of others and assume responsibility. As far as pressure washer man, Do you know the scope of work, or how many manhours or time frame were required in this job. Please limit your comentary to things you know about like best location for coffee cups, or color coordination of cany bars, since you obviously are clueless to the real world of construction. Please also don't bother with a response, since as you can see by my name that I am the senior authority on everything so my word is final.
    Thank you and have a nice day:)


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