Billionaire purchases big chunk of land in Vegas
Famed hedge-fund manager John Paulson put his money into the recovery of real estate in Las Vegas. As the supply of homes in the area has been on the decline, Paulson purchased more than 875 acres of land in a remote neighborhood in Las Vegas for $17 million through his firm, Paulson and Co.
Just before the housing collapse in 2007, Las Vegas was overbuilt, causing many homes to end up in foreclosure. Now that the housing market is recovering, investors have snagged these homes and have chosen to resell or rent them out. The purchase by Paulson’s firm was one of the largest in the past three years.
“Paulson & Co. was prompted to invest heavily in the Las Vegas market because the supply of new housing is rapidly receding and few new projects are being planned in the Henderson area,” Greg Gross, director of the Nevada region for Metrostudy, a Houston-based firm that tracks new construction told Bloomberg.
The land was purchased on the north shore of a lake known as Rainbow Canyon by locals in a master-planned community, Lake Las Vegas. In 2008, the developer of the community filed for bankruptcy, and Paulson's investment in the land proves it has potential, according to Bloomberg.