WP HTTP Error: A valid URL was not provided.
CITRA Wins City Approval, Incentives for $71M Downtown Healthcare/Assisted Living Complex29 Nov 2013, 10:37 pm
By Alex Girda, Associate Editor
As the Downtown Project led by Tony Hsieh gathers momentum, a major healthcare and residential project has reached a major milestone. The Las Vegas City Council recently approved an agreement with developer CITRA Real Estate Capital for Symphony Park, a $71 million skilled nursing and assisted living facility.
Located on the site of a former rail yard at 394 S. City Parkway, the mixed-use project would mainly consist of the skilled nursing building and the assisted living facility, but will also include a parking structure, garage, ground floor retail and dining spots. The linchpin of the deal is the council’s decision to sell the project’s 3.3-acre site for $3.5 million, a substantial discount from the parcel’s estimated $11.5 million market value.
According to The Las Vegas Review-Journal, the company will develop a six or seven-story skilled nursing center with a capacity of about 150 beds. Services will include physical therapy, speech and occupational programs. The eight-story assisted living facility will offer some 140 residential units, and the parking structure will accommodate around 464 vehicles.
Potential job creation persuaded the Las Vegas City Council to provide the financial incentive. Symphony Park would attract around 892 positions, which translates into a $37.6 million annual payroll. Although the city will get a below-market price for the land, returning the parcel to property tax rolls will generate $781,000 in revenue annually, LVRJ reports.
CIM Launches Downtown3rd Entertainment District After Makeover22 Nov 2013, 11:32 pm
By Alex Girda, Associate Editor
Notwithstanding the struggles experienced by the Las Vegas residential market in recent years, the area is getting repeated reminders that its entertainment, hospitality and gaming sectors are bouncing back nicely. A recent case in point is the makeover of Downtown Grand Las Vegas. Renovated and re-branded Downtown3rd by its developer, CIM Group, the mixed-use entertainment district is positioned as a boutique-style experience in its hotel, casino and entertainment components.
Located on a 6.3-acre site at 3rd Street and East Ogden Avenue, Downtown3rd offers 634 guest rooms in the 25-story Grand Tower and the 18-story Casino Tower. Downtown3rd has 25,000 square feet of casino space leased to Fifth Street Gaming.
The property offers 35,000 square feet of retail as well as a variety of dining options. PICNIC, a rooftop retreat with an infinity pool, private cabanas, a fire pit, and full-service restaurant and bar, is expected to be a major draw.
The debut of Downtown3rd is an example of a resurgence sparked in large measure by the Fremont Street Experience. Further contributing to the growing appeal of the district are attractions like the nearby Mob Museum and the commitment shown by Zappos in establishing its corporate headquarters. CIM’s acquisition and redevelopment of the Downtown Grand signals the developer’s strategy to get a footing in a market on the rise.
Medical Schools Planned for UNLV, UNR; MVP Closes on 5th Building in $55M Office Portfolio18 Nov 2013, 11:16 pm
By Alex Girda, Associate Editor
As the Las Vegas residential market continues to improve and the office sector shows signs of life, a partnership of educational institutions is also eyeing growth..
A memorandum of understanding was recently signed by the Nevada System of Higher Education; the University of Nevada, Las Vegas; the University of Nevada, Reno; and the University of Nevada School of Medicine. The agreement marks the first step toward establishing four-year medical schools on both the UNLV and UNR campuses.The Las Vegas Review-Journal reports. This move comes as a result of a directive to develop a school of medicine with the effort of UNR and UNLV, according to The Las Vegas Sun.
In investment news, MVP REIT Inc. said Oct. 28 that it closed on the fifth of six buildings it is under contract to buy in an office park at 8905 W. Post Road.
Most recently, MVP closed on a 22,000-square-foot Class A office building for $6.1 million. The property is part of a $55.1 deal for the six-building campus.
The property is 91 percent occupied by tenants with triple-net leases. MVP financed the purchase by assuming $3.5 million in debt and transferring around 296,106 shares of the company’s common stock valued at $8.78 per share, the REIT said in a statement.
Las Vegas Home Prices Gain Again As Market Draws Institutional Investors31 Oct 2013, 2:07 am
By Alex Girda, Associate Editor
Now that the final summer numbers for the nation’s housing market are in, it is clear that Las Vegas outperformed the rest of the nation once again in August. The Standard & Poor’s Case=Shiller Index shows that home prices for the Las Vegas market grew 29.2 percent compared to August 2012.
According to the Associated Press, that is more than double the 12.8 percent increase achieved by the 20-city Index during the 12 months ending in August. All 20 markets recorded year-over-year growth. However, the Las Vegas housing market still has a long way to go before catching up with pre-recession levels. Prices are still 47 percent lower than peak values.
In the office market, the fast pace of price growth is already starting to lessen the appetite of institutional investors. In the single-family housing market, however, the reverse is happening, as institutional players are increasing their activity. According to a RealtyTrac report cited by VegasINC magazine, institutional investors accounted for a quarter of all Nevada residential sales in September, up from 14 percent during August.
During the first half of 2013, institutional investors accounted for 15 percent of home purchases in the Las Vegas Valley. The prices still outpace last year’s figures considerably, but the market is showing signs of cooling. As VegasINC noted, September was the first month this year to record a month-over-month price decrease.
Caesars, Gansevoort Part Ways on $185M Bill’s Gamblin’ Hall Makeover25 Oct 2013, 11:20 pm
By Alex Girda, Associate Editor, and Paul Rosta, Senior Editor
Caesars Entertainment’s $185 million makeover of Bill’s Gamblin’ Hall & Saloon is going forward without one of its original partners. In response to concerns raised by Massachusetts regulators about an investor’s alleged links to Russian crime syndicates, Gansevoort Hotel Group is stepping away from its role as developer of a 188-key boutique hotel. Statements from Caesars and Gansevoort strongly dispute the problems cited by regulators, and imply a reluctant but amicable parting.
The Las Vegas Review-Journal reported that New York City-based Gansevoort’s departure stemmed from an unrelated billion-dollar casino venture in Boston, on which Caesars teamed with Suffolk Downs Race Track. Massachusetts Gaming Commission officials raised a red flag because of a 2012 report in the New York Post, which suggested that an investor in Gansevoort has connections to Russian crime syndicates.
Although Gansevoort had no connection to the Boston proposal, officials nevertheless raised concerns about its partnership with Caesars on the Bill’s Gamblin’ Hall project. Massachusetts regulators prompted Suffolk Downs Race Track to drop Caesars from the Boston project. Also at issue was Caesars’ $23 billion debt load.
The action drew a sharp response from Caesars, which called Massachusetts’ standards “arbitrary, unreasonable and inconsistent with those that exist in every other gaming jurisdiction,” according to the Review-Journal. After consulting its partners, the statement added, Caesars had decided “to focus on our 54 properties around the world as well as other growth opportunities.”
Gansevoort expressed equal dismay. Michael Achenbaum, the company’s president, released a statement charging Massachusetts regulators with relying on what it called “rumor” and “innuendo.” “No new facts have arisen since we passed the internal gaming compliance process of Caesars prior to the execution of our agreements,” Achenbaum added, according to the Journal-Review. “However, in order to minimize any controversy for Caesars, we have agreed to end our role in the Las Vegas project. Gansevoort wishes Caesars and its team continued success.”
According to statements from Caesars, Gansevoort’s departure will have no impact on the transformation of Bill’s Gamblin’ Hall & Saloon, which will include a 40,000-square-foot casino. Nor will other planned attractions be affected, such as the 65,000-square-foot nightclub owned by Victor Drai, which is scheduled to open in the spring of 2014, or celebrity chef Giada De Laurentis’ restaurant.
A while ago, part of a city-wide trend to improve or redevelop old gambling spots on the Strip, Caesars Entertainment announced plans to turn a local staple into a completely revamped, high-end hospitality spot. The Las Vegas giant had presented its project to put new life into the former Bill’s Gamblin’ Hall & Saloon, with the aid of New York-based Gansevoort Hotel Group. The idea was to turn the aging casino property into a fresh-faced, 188-key boutique-style hotel, sporting the signature style of the iconic hospitality company. That partnership however, is now ancient history, The Las Vegas Sun reports.
While Caesars Entertainment is set to go ahead with the $185 million investment in the boutique hotel project, Gansevoort is no longer part of the scheme, marking a split between the two organizations. The breakdown will also not affect other planned attractions at the rebranded property, with the Victor Drai-owned 65,000-square-foot nightclub set to open in the spring of 2014, as well as celebrity chef Giada De Laurentis’ new Italian restaurant at the address.
According to press statements from Caesars, the split with Gansevoort will have no impact on the transformation of Bill’s Gamblin’ Hall & Saloon into a new nightlife-oriented spot, with a 40,000-square-foot casino also part of the proposed package.
The backstory regarding the split with Gansevoort has received quite the amount of coverage recently. The Las Vegas Review-Journal recently reported that Caesars ended its partnership with the hospitality company for Bill’s Gamblin’ Hall and Casino as a result of its forced exit from a billion dollar casino venture in Boston, MS. State regulators prompted Caesars’ partner in the joint venture, Suffolk Downs Race Track to drop the Las Vegas company due to its involvement with Gansevoort in the Bill’s Gamblin’ Hall redevelopment project, and denied Caesars’ gambling license in the state of Massachusetts. The action came as a result of information regarding one of Gansevoort’s current investors having ties to Russian organized crime. Caesars and Gansevoort ended their partnership amicably, as press releases from both sides point out, mainly in order to prevent the gambling company to take any more hits from their association.