As major Las Vegas construction projects, including the new Raiders stadium and the MSG Sphere entertainment venue, have garnered headlines for unpaid construction work claims, there is another, albeit more modest addition to the list in the Lave Om apartments.
The general contractor and subcontractors hired to construct the 18-unit, three-story apartment complex in downtown Las Vegas have placed $2.24M in mechanics lien claims on the property since at least June 17, 2020. A mechanics lien helps contractors force payment by gaining a security interest in the property, which can prevent the property’s sale or refinancing until it has been lifted.
According to the Las Vegas Sun, construction of the Lave Om apartments is expected to be completed by December of 2020. New residents are scheduled to move in by early 2021 amid the COVID-19 outbreak, as Nevada battles over 66K confirmed cases as of August 26, 2020.
While Las Vegas is not listed on RentCafe’s list of the top 20 U.S. metros for apartment construction growth in 2020, the market is still seeing steady construction rates. Between 2015 and the start of 2020, an average of 2,700 new apartment units were constructed each year in Southern Nevada.
8 Contractors Owed $2.24M for Work on Lave Om
Including the general contractor, eight different contractors are owed a total of $2,248,099.94 from work taking place at the Lave Om apartments, located at 627 S. 10th St, Las Vegas, NV. According to the lien affidavits, each claim was processed by the Clark County clerk’s office.
On July 10, 2020, Design Builders filed a lien valued at $1,987,733.68, which accounts for 88% of the total funds withheld from contractors on the Lave Om job site.
Design Builders is now facing at least five mechanics lien claims from unpaid subcontractors on the same project, totaling $254,087.90.
Subcontractor Ashworth & Belcastro Systems, Inc. filed the largest claim against Design Builders on July 15, claiming they are owed $72,901.81.
Back on June 17, subcontractor Raptor Plumbing, LLC filed the second largest claim against the general contractor, claiming $59,840.46 in unpaid work. Another $50K+ lien was filed on July 29 from subcontractor Hardy Painting and Drywall, which is still owed $55,420 from Design Builders.
Seven days earlier on July 22, National Pipeline Contractors, LLC filed a lien valued at $43,447.24 against the GC.
The fifth lien placed against Design Builders took place on July 2 from PDE Holdings, LLC, which claimed they are owed $22,478.39.
The remaining two known liens placed on the Lave Om apartments combine for a value of $15,278.36. From the eight filings placed against the property, the average lien value was $281,012.49
Las Vegas Apartment Construction Rates in 2020
Since 2015, more than 13,500 new apartment units have been constructed in Southern Nevada, according to a report published by Nevada Business in August 2020.
The report also found that Las Vegas’ apartment development through the second quarter of 2020 continued to show signs of construction growth.
According to the report, 3,117 new apartment units are under construction in the Las Vegas metro area as of Q2. The report states that “about 45% of those new units are near the southern portion of the 215 Beltway in the Enterprise, Henderson, Spring Valley and Summerlin areas.”