Featured Story: Established Investor Shares Tips on Emerging Markets
Starting in 2006, noted billionaire investor Marcus Hiles began to watch the Las Vegas real estate market with keen interest. He knew that the city was beginning to experience a catastrophic drop in housing prices, and this signaled a rough road ahead for many other cities in the United States. With his experience developing luxury real estate properties in Texas, he understood that the situation in Las Vegas bore careful scrutiny.
Several other major cities were affected by the real estate bust of 2006, including Miami and parts of both California and Arizona. Housing prices plummeted due to predatory lending by banks and careless speculation. While it took several years to recover, the affected cities are now experiencing unparalleled price jumps, especially in the upscale market. In Las Vegas, homes priced over $1 million doubled in sales between 2014 and 2015, and this uptick in the market carried over to other cities. In Texas, particularly the Dallas/Fort Worth area, Marcus was able to capitalize on this growing nationwide trend, developing luxury properties in earnest at the helm of two prominent companies he owns.
Restrictions and best practices were put into place to help the real estate markets recover. In Las Vegas and in Miami, tighter lending restrictions and requirements for higher initial down payments were critical in spurring the recovery. Restrictions on overbuilding in some of the areas hardest-affected also helped to create an atmosphere where careful developers could still work to bring properties to life. These new restrictions served to drive away casual speculators who inflated the real estate market artificially, while more seasoned professionals like Marcus were able to ramp up their development efforts.
His Western Rim Property Services company focused on the rental market, developing many lease properties that offered residents upscale living conditions at affordable prices. Amenities like fitness clubs and green spaces complemented the custom interior finishes and high-end appliances. Today, the company is responsible for over 20,000 rental units throughout Texas, including developments in Houston, Austin, and San Antonio in addition to the Dallas metro area. Properties were developed in traditional apartment buildings and condominiums, with several town home developments situated in some of the hottest neighborhoods in the major Texas cities.
The other company Mr. Hiles runs is Mansions Custom Homes in Dallas, Texas. This build/develop firm specializes in luxury residential properties, targeting only the most desirable neighborhoods in Dallas/Fort Worth. Marcus purchased land in areas with good school systems and ample natural areas to develop. Mansions crafts spacious upscale homes that feature custom interior and exterior finishes, luxurious landscaping and grounds, and state-of-the-art appliances, lighting, and security systems. The neighborhoods developed by the company stress “green” building standards, planting trees and reserving natural areas for the benefit of residents. The homes are constructed using energy-efficient systems to reduce their environmental footprints. Along with being a respected real estate developer, Marcus is known throughout the industry for his focus on environmental stewardship. Upscale Las Vegas properties have made a resurgence, and this trend helped other cities to develop better, more luxurious, and feature-rich real estate ventures that will stand the test of time.