Original investment in land and improvements are reported to be over $2 Billion dollars
by Michael Gerrity in World Property Journal
CBRE’s John Knott and Michael Parks announced this week the firm’s listing of the Fontainebleau Las Vegas, a partially completed hotel casino project that represents an original investment in land and improvements of more than $2 billion. At 730 feet, it stands as the tallest hotel tower on the Las Vegas Strip.
Situated on 22.65 acres on the east side of Las Vegas Boulevard south of Sahara Avenue, the project’s structure provides for flexibility relative to its completion and can be reconfigured to meet a new investor’s vision, according to Knott.
“A Las Vegas Boulevard address, coupled with adjacency to the planned expansion of the Convention Center District by the Las Vegas Convention and Visitors Authority (LVCVA), along with the tower’s iconic height, combine to make this one of the most exciting development opportunities in Las Vegas in many years,” said Knott. “The structure has been well-maintained and is ready for immediate development to bring to fruition the vision of its next owner. This is an unparalleled asset with significant potential on one of the most landmark streets in the world. Opportunities like this are few and far between.”
Originally programmed for 3,815 keys comprised of 2,882 hotel rooms and suites, 933 condominiums, 300,000 square feet of retail, 543,000 square feet of meeting space, 155,000 square feet of gaming space and a 3,200-seat theatre, the project is significant in size, function and possibility.
“As the global and local economy rebounds and 2014 visitation to Las Vegas topped a record-setting 41 million tourists, the time is ideal to realize the potential of this incredibly valuable piece of Las Vegas real estate,” said Parks. “Hotel occupancy rates in Las Vegas are over 90 percent with record average daily rates, retail sales are strong and there is an improvement in mass market gaming numbers. The next generation of this development is limited only by the imagination and vision of its new owner.”
The property is located adjacent to the former Riviera Hotel & Casino site that is now owned by the LVCVA and is part of a planned 10-year, $2.5 billion expansion and redevelopment initiative that will add significant convention and meeting space, a World Trade Center and improve the area via aesthetic enhancements and technology upgrades. The goal of the initiative is to ensure Las Vegas remains the world’s number one tradeshow destination for decades to come.
“The Fontainebleau gives a well-heeled investor or group the opportunity to do something meaningful and wonderful that will add to the Las Vegas experience,” said Parks.