BLM sells 27 acres of federal land in Southern Nevada
LAS VEGAS (AP) – The Bureau of Land Management sold 27 acres of federal land in southern Nevada on Wednesday at one of the slowest and least lucrative auctions held recently by the agency.
Of the 60 parcels on the auction block, only nine sold, BLM spokeswoman Hillerie Patton said.
The sale brought in just more than $11 million to fund conservation projects, parks, capital improvements, education and the Southern Nevada Water Authority, as dictated by federal law.
Real estate analyst Richard Lee said the slow pace of bidding from developers and speculators was not a sign that one the nation’s hottest real estate markets is freezing over.
Many of the parcels offered for sale were zoned with restricted housing density or with provisions that slow down the rezoning process, he said.
“Some of these parcels you’d have to sit on for a year to two years while in the process of rezoning,” Lee said. “They didn’t justify the appraisal. All this tells us, is that evidently (the parcels) were overpriced.”
Bidding on the parcels starts at fair market value as determined by independent appraisers.
The parcels sold Wednesday at an average price per acre of $408,400, up from $266,250 at a November auction.
That sale sold off 3,002 acres and brought in $799.3 million, most of which came from one developer planning a mixed-use master-planned community in North Las Vegas.
The largest parcel up for bid Wednesday, a 45.6-acre plot north of Las Vegas, did not sell.
This was the 20th auction held since the passage of the 1998 Southern Nevada Public Land Management Act, which was intended to give sprawling Las Vegas room to grow, while providing funding for conservation and parks.
Thanks to soaring land prices around the city, the sales have generated more than $2.7 billion.