The chief executive of master-plan developer Focus Property Group said his company is weathering the housing downturn by selling commercial land and is seeking capital from Wall Street to position itself to take advantage of slumping land prices.

John Ritter, in a Monday interview with In Business Las Vegas, attempted to dispel speculation and suggestions by those in the development community that the master plan developer of Mountain's Edge, Inspirada, Providence and Kyle Canyon is having financial problems — a common thread among residential developers and builders given the housing slump.

Focus recently sold 45 acres in Henderson's Inspirada development to Station Casinos for $71 million.

"We are doing fine," Ritter said. "We've got money in the bank. We are completely healthy and never missed a payment."

Ritter said Focus is exploring strategies to expand.

That's why his firm is talking with Wall Street investment banks, financial institutions and other sources of equity.

"We just think it is a good time to be buyers in this marketplace," Ritter said. "We have a great belief in the long-term value of Las Vegas land."

As for selling the Inspirada land to Station at this time, Ritter his company's business is to sell land to builders and commercial developers and unlike the single-family home market, the demand for casino property — and land for multifamily housing of 30 to 50 units per acre — remains strong.

"We are definitely looking at generating revenue and lowering cost like any major home builder or developer is doing at this time," Ritter said. "Our business is to buy land and sell it for a profit."

In a market in which builders aren't buying residential land and Focus can sell commercial land where it can make a good profit, Ritter said it makes sense to sell.

It is difficult to hold onto all land holdings, and he said his company doesn't do joint ventures with casino companies.

"We were satisfied with the offer Station gave us," Ritter said. "We did not have to sell the casino site, but it was a good offer, and we took it."

Steve Bottfeld, executive director of Marketing Solutions, a Las Vegas housing analyst and consultant, said the sale of the Inspirada land to Stations Casinos at this time doesn't mean a crisis but a reflection of a "liquidity problem."

Otherwise, Focus would hold onto it and see its value increase, he said.

"I think the bigger you are in this market, the more pain you're experiencing," Bottfeld said. "Virtually every major firm has liquidity issues."

The biggest issue is the cost of the loans used to purchase the land. Developers can be "eaten alive" before the market turns around, Bottfeld said. That makes Ritter's strategy of bringing on builders as partners an excellent model, he said.

Despite any liquidity problems, Focus is a well-run operation that has one of the top master planned communities in the country in terms of sales with Mountain's Edge, Bottfeld said.

As a rule, privately held builders and developers aren't doing well, but companies such as Focus have an advantage because they don't have to answer to public shareholders who are interested in the short term, he said.

"I think what he is doing is positioning himself not to just buy more land but assemble pieces," Bottfeld said. The key to Ritter's success has been his ability to assemble small parcels to create a master planned community, he said.

Focus owns more than 5,000 acres of which 60 to 70 percent is single-family residential and 30 to 40 percent is commercial. Ritter said Focus isn't even marketing its residential land to builders because they're not interested in buying given the housing slowdown.

Although one Las Vegas developer suggested homebuilders have walked away from options on Focus land, Ritter said that's not the case. He said there's only been one instance that has occurred in recent years.

Before the downturn when the market was strong, Focus sold most of its land in Providence and Mountain's Edge to builders, Ritter said.

As for Inspirada and Kyle Canyon, Ritter said the company prepared itself for the housing slowdown by bringing in builders as partners. In June 2004, Focus and seven homebuilders bought 1,940 acres in a federal auction for $557 million, double the appraised value.

"When we saw this coming a couple of years ago, we shifted our strategy for our last two projects," Ritter said. "Rather than buy them ourselves and sell to builders, we brought in partners and kept a small percentage of those deals. It is costing us a fraction of what it could have if we held onto that project. We are glad that is the strategy we took on. Certainly, from a financial standpoint, it would have been more stressful to carry both of those projects. Had we had it ourselves, there might have been builders walking away from options."

Focus' percentage of Inspirada is 15.5 percent, which includes about half of the 300-acre Town Center that will feature commercial and high-density residential and the casino. It owns 23 percent of Kyle Canyon.

Ritter said he expects 2008 to continue to remain slow for the homebuilding industry and doesn't see any recovery until 2009 at the earliest.

"This market will turn around faster than most in the country because of the tremendous job growth along the Strip," Ritter said. "I don't have a crystal ball. I don't know when the market will return but it will be very strong."

Sales in master planned communities have been slow compared to past history but builders are finding some success, especially when they discount prices, Ritter said.

"That's what you have to do in this market," Ritter said. "I don't think there will ever be a better time to buy a new house than in Las Vegas right now."