LAS VEGAS BLVD. & GARCES. Proudly Presented By Schifano & Associates

Transcription

1 LAS VEGAS BLVD. & GARCES Proudly Presented By Schifano & Associates

2 PROPERTY HIGHLIGHTS Located on the corner of S. Las Vegas Blvd & Garces In the heart of the Downtown Redevelopment Corridor at the entrance of Fremont Street Area is very diverse - commercial, high rise, hotel, etc. uses Las Vegas Blvd Frontage.72 +/- acres APN , 141, 142, 143 Fully leased making it income generating Zoned C-2 Suitable for high-rise condominiums Minutes away from Gaming District Exclusively Offered at $5,400,000

3 628 S Las Vegas Blvd. Las Vegas, NV 89101

4 Downtown Las Vegas Overview Downtown Las Vegas is currently undergoing major revitalization and has quickly become the destination for Urban Development. Once seen as debilitated, downtown is now being recognized as opportunity, promise and the jewel of the city. With more than 3,300 acres designated for redevelopment, the City of Las Vegas has put together an aggressive plan to revitalize downtown into a unified, pedestrian-friendly destination. The city has adopted The Centennial Plan to establish fundamental planning, development and land use guidelines to insure an urban design to transform downtown into a cultural, commercial, and residential mecca. To attract developers to downtown, the city has set minimal restrictions on new developments. It has been made clear that issues such as height, density, setbacks, and parking requirements are all negotiable. The city has even created a fast track team to provide developers with a well-organized, understandable and expedient process to get projects underway quickly and efficiently. The efforts set forth by the city have generated great dividends. Downtown is already feeling an increase in traffic stemming from tourists, residents and business people taking advantage of the new employment and residential opportunities, accessibility, and the unique urban lifestyle. As part of the strategy to redevelop the urban core of downtown, the City has designated distinct districts within its Redevelopment Corridor. The Art District is being established as a live/work environment that is integrated with unique amenities such as galleries, artistic shops, boutiques, studios, coffee houses and lounges. With several residential loft projects being developed around the area, the Art District Corridor will soon become a dynamic, rich, urban environment, comparable to Soho in New York City. The Office District has also gone through a tremendous amount of growth in the past few years. The Lloyd George Federal Court House, newly renovated Federal Building, the City Center Place, which consists of 100,000 sq. ft. of Class A offices, and the new Regional Justice Center soon to be open, have become the anchors for the revitalizing of the downtown business and financial corridor. The Casino District is the home of the historic downtown casinos. With Barrick Gaming making several acquisitions and other major casinos, such as Golden Nugget, Fitzgerald, the Lady Luck and the Four Queens, all recently sold, expansions and renovations will most likely reposition Downtown Las Vegas as a major force in the gaming market. The centerpiece of this gaming corridor is The Fremont Street Experience. The 1,500-foot long, 90-foot high space frame is a must-see attraction that draws in over 25,000 spectators nightly - over 9 million per year. The Entertainment District was established to create an area specifically for non-gaming entertainment. The vision is to attract a pedestrian - friendly collection of blues and jazz nightclubs, comedy clubs, restaurants and bars. This will rehabilitate the old commercial center into a vibrant entertainment district like Bourbon Street in New Orleans or the Gas Lamp District in San Diego Our downtown area is becoming the core of our city with the emergence of new high quality office buildings, parks, plazas, street lined with trees and arcades, restaurants catering to both business and evening activity patrons, hotels, the historic casinos, entertainment, shopping, museums, and perhaps most importantly residential communities and neighborhoods; the Downtown Las Vegas will generate economic vitality and make it a safe and pleasant place to live, work and play. Mayor Goodman.

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6 News in the Area Resorts World Las Vegas took a big step forward today when Nevada gaming officials gave a key regulatory approval to the $4 billion project. The Nevada Gaming Commission unanimously signed off on a series of applications from Genting Group, the Malaysian company that s developing the resort on the north end of the Las Vegas Strip. The approvals given to Genting, which received the blessing of the Gaming Control Board two weeks ago, included findings of suitability for various executives and corporate entities. They mark the most significant public progress on the project since it held an elaborate ceremonial groundbreaking a year ago. Construction of the Chinese-themed Resorts World should start in earnest sometime in the last three months of this year, with site activity beginning to ramp up this summer. The resort is expected to be finished in early Resorts World was previously expected to open in Gerald Gardner, the project s general counsel, said Genting officials have been focused on improving and refining their plans. He has said previously that issues with the Chinese economy and Malaysian currency impacted the timeline. This is an extremely deliberative and thorough company when it comes to evaluating markets, when it comes to getting it right in terms of design and construction, Gardner said today. When it opens, Resorts World plans to offer a hotel with more than 3,000 rooms, a 150,000-square-foot casino and a nightclub, among other features. One element highlighted today by Gardner was a celestial sphere feature in the front entrance atrium that will be able to display selfies from guests. The area will also include a Chinese garden, Gardner said. Gardner, a former chief of staff to Gov. Brian Sandoval, said Resorts World intends to attract a large number of Chinese customers but indicated it should be well positioned toward domestic patrons as well. The resort will create about 5,000 direct construction jobs and will have some 3,000 employees when it opens, Gardner said. Resorts World is being built on the site where the Stardust stood until it was imploded. Boyd Gaming Corp. started to develop a new resort there called Echelon but abandoned the project amid the recession. Genting is using partially built Echelon structures to build Resorts World. By J.D. Morris (contact) Vegas Inc.

7 A deal is on the table for an entrepreneur to acquire the mothballed Fontainebleau casino project on the Strip, and it could be sold by the end of the summer, according to a brokerage firm handling its sale. There s still some work that has to be done, but there s a real deal on the table for sure and they have started their due diligence, said John Knott, executive vice president of CBRE Las Vegas, which listed the property in November for billionaire corporate raider Carl Icahn. We re hopeful it gets done and have something to announce soon. These are real players who have spent a lot of time on the deal, and if their efforts go for naught, it s very expensive. Knott wouldn t say much about the potential buyer and where they re from, except to say it s a entrepreneur who has a presence in the gaming industry. There s also financial entity involved which Knott called impeccable. The potential buyer has been interested in the property since it was listed in November, Knott said. Reports in January suggested a deal may happen within 60 days, but it s taken longer. The buyer who s taking the lead on this is an entrepreneur but to be able to be successful, we required him to go through certain hurdles to demonstrate they have the financial capacity, Knott said. That means a money partner supporting them and that has evolved in the last two months. He has a capital partner. He has a gaming partner, and he has a hotel partner. Icahn bought the property out of bankruptcy in January 2010 for $150 million and listed it for $650 million. Knott said the proposed sale is for around the full price. The initial plans for the project called for 3,875 hotel rooms and condominiums. Construction on the 730-foot building began in 2007, with an estimated completion price of $3 billion. Its original developers, Fontainebleau Resorts of Miami, spent $2 billion and two years on the project before the economy crashed. When the global banking crisis hit in 2008, Bank of America and JP Morgan Chase canceled $770 million in loans in April With the project 70 percent complete, the developers filed for Chapter 11 bankruptcy two months later. Knott said he expects the project to go forward in a similar fashion to its design. He s suggested it could cost about $1.2 billion to finish the project, and it would take two years to finish the tower. When it went on the market, CBRE said it marketed the property to both existing gaming companies and investors from Asia and other countries. CBRE said it has shown the property to a couple of dozen people interested in it, but Knott said it s a difficult proposition for people to meet the asking price and have the capital to finish the construction. There s not a lot of ready capital for development in Las Vegas unless it s a company like MGM Resorts, he said Why we don t have a deal done is a question mark mostly because we didn t have a large gaming company that says we want to have that asset, Knott said. People are saying until we have the supply sided figured out of what we need, we re not going to take on new development. You have to compete with the Forum Shops and the rest of the things out there. John DeCree, director and head of North America research for Union Gaming, said he hasn t heard a lot about a potential sale, except there hasn t been interest from gaming companies in Las Vegas, especially for that price. I would believe it coming from them, DeCree said of CBRE. Someone has to be interested in that parcel on the Strip. It s a hefty price tag, and I am not sure if it will fetch $650 million. I wonder if someone is interested at a lower price point. If Carl Icahn would let it go for lower given that it s been on the market for a while, that might be the case. DeCree said he thought less $500 million would be the right price for the property but that more could be paid if they had the right plan for development. It will take another $1 billion plus to make it an attractive resort given how competitive the Strip has become, he said. If you are thinking a $500 million price tag and a billion-plus to finish it, that s still a hefty investment, DeCree said. Resorts World is looking to put a couple of billion dollars into the ground right up the street. Steve Wynn is talking about a $1.5 billion investment in the Paradise Park project. It s been a stale project for so long that it would be great to see something come of it. The Strip can support a little more supply given where the visitation trend is going, but it s an expensive proposition for folks to come in. By BUCK WARGO SPECIAL TO THE REVIEW-JOURNAl

8 By RICHARD N. VELOTTA LAS VEGAS REVIEW-JOURNAL The 3,000-room Monte Carlo will undergo a two-year, $450 million makeover that will create a new luxury brand for MGM Resorts International and bring the NoMad Hotel concept to the Strip. MGM and the New York-based Sydell Group announced Friday that work on the transformation of the property, which will become known as Park MGM, would begin this year and be completed by the end of The design of Park MGM, a 2,700-room luxury property, will build on the property s history, incorporating European design influences while retaining a branding connection to The Park, the company said. MGM in April unveiled The Park, an outdoor dining and entertainment district that abuts Toshiba Plaza and the T-Mobile Arena. The NoMad Las Vegas will be an independently operated hotel with 292 rooms and suites, a dedicated drop-off lobby and swimming pool as well as separate gaming, dining and drinking experiences. The Sydell Group introduced NoMad in New York as well as The Line in Los Angeles, Freehand in Miami and Chicago and Saguaro in Scottsdale, Arizona, and Palm Springs, California. MGM Resorts Chairman and CEO Jim Murren said in an interview Friday the time was right to invest in upgrading the Monte Carlo, which opened in Fortunately, Las Vegas is on a roll here and the market s doing much better, all the properties are doing well and becoming increasingly popular as a destination, Murren said. All of us want to continue to build on that whole maxim. Murren said the company has been in talks with Sydell for three years, but it wasn t until last year that officials decided to go forward with the plan to upgrade and rebrand the property. What this does is bring a new dimension to entertainment in a form of hospitality that does not exist here with a group that has been an expert in doing that in key markets like New York, London and Chicago, Murren said. It really rounds out the neighborhood of entertainment that we have created with CityCenter, T-Mobile (Arena) and The Park and the upgrades to New York-New York. STEM-TO-STERN REIMAGINING I m more excited about this than many projects we ve worked on because it really is a holistic reimagining of an entire resort, not just a room-remodel project or adding a couple of new restaurants here and there or putting down new carpet in the casino. This is a top-to-bottom, stem-to-stern type of reimagining with incredible talent that is not here, and that s really why Las Vegas is doing so well because people continue to search for these one-of-a-kind moments and what they ve never seen before. Murren said the Monte Carlo won t close during the project and that workers will move floor by floor during the course of construction. Some public areas will be closed as work progresses. Murren said he doesn t expect the final name change to occur until work is close to completion and changes can be made to websites and room-booking search engines. The arrival of NoMad also brings some new dining concepts to the Strip. Chef Daniel Humm and restaurateur Will Guidara will bring Eataly, an Italian marketplace with cafes, to-go counters and full-service restaurants providing products from Italian and local producers. We are very excited to bring the first Eataly to the southwestern United States, Nicola Farinetti, CEO of Eataly USA, said in the statement announcing plans. Las Vegas will be an entirely new scene for us, he said. We look forward to adding our Italian food, drink and culture to the energetic mix of this iconic American city, thanks to our collaboration with Sydell and MGM Resorts. The collaboration between MGM Resorts and Sydell felt very natural for both NoMad in Las Vegas and Park MGM, Andrew Zobler, founder and CEO of Sydell, said in a statement. MGM is the pre-eminent operator of casino resorts and has extensive expertise leveraging unique guest experiences across properties with great scale. Sydell Group has a growing collection of brands focused on authentic offerings, a residential feel and the ability to connect with like-minded collaborators at the forefront of design and food and beverage, Zobler said. Together, we have been able to meld these approaches into a property that will have real soul. Hornbuckle said the partnership provides an opportunity to expand the Park MGM brand to other cities. Sydell officials characterize Park MGM s design as casually elegant and that clean lines will define the architecture of each space, combined with classically inspired

9 European furnishings and a robust art program, which is core to both companies design philosophies. TWO BRANDS, ONE HOTEL The concept of placing two hotel brands in one building has been successfully implemented by MGM, most notably at Mandalay Bay on the south Strip. There, the Four Seasons operates on five of the 43 floors of the Mandalay Bay tower. Also, a separate 45-story hotel tower formerly known as The Hotel now operates as the Delano Las Vegas. The 32-story Monte Carlo opened June 21, 1996, a month and a half after the Stratosphere hotel-casino. One of the distinctions of the property was the elimination of the 00 pocket on Monte Carlo roulette wheels, giving players a slight advantage with a 37-pocket wheel, as used in the French European version of the game, compared with the 38-pocket wheels used in the United States. The property was closed for less than a month starting on Jan. 25, 2008, following a three-alarm fire on the top six floors of the building. County fire inspectors attributed the blaze to flying molten metal and inadequate safety measures by construction workers. Welders working atop the hotel were using a hand-held torch to cut corrugated steel for a rooftop walkway when the hot metal, called slag, triggered the fast-moving fire, burning flammable foam that was used in the exterior design.

10 Maria Schifano, Broker/Owner Schifano & Associates S Eastern Ave., Suite 227 Henderson, NV Office: Direct: Fax: mariaschifano81@gmail.com Facebook: Linkedin: