As residential land prices continue to rise, it makes business sense that home builders would look for cheaper ways to continue to do business. Homes built in outlying areas could be marketed not only to residents of those communities, but also to Las Vegas-area residents looking for an alternative to the valley's high prices.

California-based William Lyon Homes is the first national home builder to publicly announce its plans for Pahrump, a small community about an hour's drive from Las Vegas.

William Lyon Homes, in a joint venture with Las Vegas-based Insight Holdings, closed on 900 acres, part of the existing Mountain Falls community, in June. The transaction price was not disclosed and was not immediately available from Nye County.

Terry Connelly, vice president of William Lyon Homes Nevada, said Pahrump appeals to people who are looking for affordable homes and a rural lifestyle that Las Vegas cannot offer.

"It offers lifestyle and affordability," he said. "Pahrump has the makings of being a very vibrant new community, and we recognize we'd like to be at the grass-roots level of that to help achieve that goal."

William Lyon will be advertising its Pahrump homes in Las Vegas.

Dennis Smith, president of Home Builders Research Inc., said the home builder should do well in the neighboring community.

"I think it's a great move, they should do fine out there," he said. "The key is they have to have all their water and sewer arranged. As long as the infrastructure is in place, they're going to do fine."

Smith said he expects William Lyon Homes to open up the community to other merchant builders.

Smith, who tracks residential land and home sales, said other builders are looking to Pahrump as well. Beazer Homes and Concordia Homes are in escrow for land in Pahrump, and American West already owns land in the town and is working on infrastructure improvements, Smith said.

William Lyon Homes has been working on purchasing the land for more than a year after a bank took it back from the original developer in a bankruptcy proceeding. The original developer has since died.

"We've been working with the bank that took it via bankruptcy, and we've been working with them over a year," Connelly said.

The community was in the preliminary stages when the previous developer went into bankruptcy. About 24 homes were built, but the 18-hole golf course had to be completed along with other infrastructure improvements, Connelly said. The course, now completed, is open to the public.

Mountain Falls is about 1,050 acres and is approved for 3,200 houses, he said.

William Lyon Homes will continue with the existing land use plan but is modifying it slightly for expanded amenities such as a 5-acre sports complex and neighborhood parks.

A 25,000-square-foot residents' clubhouse also is being planned. It will include multiple pools, workout rooms and meeting rooms, Connelly said.

A sales office will be open early in the fourth quarter, and model homes are expected to be completed in the first quarter of 2005.

And while William Lyon Homes has expanded Pahrump, Connelly said the company continues to search outlying areas for opportunities.

In other development news

• Keith Cos., a private Nevada investor, bought the Pebble/Eastern Commercial Center for $5.15 million. The new retail center is at 8879 S. Eastern Ave. at the Beltway in Henderson. Las Vegas-based Sun West, a builder of custom homes, was the seller. Sperry Van Ness represented both buyers.

The property, built this year, is 100 percent leased.

• CRVD LLC, based in Incline Village, bought the Auto Zone at 4425 N. Las Vegas Blvd. for $1.55 million. The 6,000-square-foot store was built in 2000 and is neighbored by a McDonald's and Wal-Mart Supercenter.

NewMarket Advisors represented the seller, Auto Boulevard LLC. Sperry Van Ness represented the buyer.

• Las Vegas' first Paul Frank Store will open Sept. 1 at the Fashion Show mall. The store will be at the front of the mall, facing Las Vegas Boulevard.

It will be the 13th Paul Frank Store worldwide. The company, known for its kitschy designs on clothes, is based in Costa Mesa, Calif.

• HomeGoods, a division of The TJX Cos. Inc. of Framingham, Mass., opened two Las Vegas Valley stores last month.

The Henderson location is at Eastern Avenue and St. Rose Parkway at the South Fork Pointe retail center.

The northwest valley location is at Durango Drive and Deer Springs Way in the Montecito Crossing shopping center.

HomeGoods offers designer and brand-name home goods, accessories and gifts at 20 to 60 percent less than specialty and department store prices, the company said.

Each store employs about 60 people.

• Christopher Commercial began preleasing activity on a 53,000-square-foot office building at the northeast corner of Summerlin Parkway and Town Center Drive in Summerlin.

Construction on the two-story $11 million office building may begin in October, Douglas Crook, managing director, said.

Jennifer Shubinski covers real estate and development for In Business Las Vegas and its sister publication, the Las Vegas Sun. She can be reached at (702) 259-8832 or by e-mail at js@lasvegassun.com