Peebles JVs, Adds Land for $2B Resort Project

By Natalie Dolce

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LAS VEGAS-Developer R. Donohue Peebles of Coral Gables, FL had previously acquired 13 acres here approved for a 4.5-million-square-foot non-gaming resort, as GlobeSt.com had previously reported. Now, Peebles Corp. has joint ventured with Mardi Gras Hotel and Casino and the JV has renamed itself Mardi-Gras Inn Ltd. to develop its $2-billion development project.

The joint venture also added 4.35 acres to the 13 acres that was previously purchased by Peebles for $65 million or $5 million per acre from seller SNIP Las Palmas LOP, which according to county records includes Southern Nevada Income Properties, Continental American Properties Ltd., ConAm Partners 88D, and DJE Financial Corp.

The property is located east of the Wynn Las Vegas Golf Course on Paradise Road, one-half mile off the Las Vegas Strip, and according to Peebles Corp., the property will become the site of the Las Palmas Resort and Casino, a $2-billion development project, that the company estimated would cost $1.6 billion to develop and have a retail value of $2.5 billion back in 2007. The Las Palmas is planned as a full-scale convention center resort with two hotels.

Resort rendering

Mike Mixer, senior vice president at Colliers International, represented the joint venture in its partnership. “This transaction shows investors’ confidence in the future of Las Vegas gaming and hospitality,” he says.

The Jaramillo family opened the Mardi Gras Hotel and Casino in the mid-1970s and retained an operational stake in the property. The Jaramillos will continue oversight of hotel and casino operations.

According to Peebles Corp., the project is to be a “luxury resort hotel and condo project,” located at 3550 Paradise Blvd. in Las Vegas. Phase 1 of the development will consist of approximately 1 million square feet of hotel development and 130,000 square feet of net sellable condominium units. The building will be 550 feet tall with levels seven through 46 being hotel oriented and 47 through 51 being condominium. Parking is accommodated in an adjacent eight level parking structure with the hotel amenity desk on its roof.

Mixer

The hotel is anticipated to include approximately 1,078 four-star keys and 266 five-star keys, 100,000 square feet of meeting/conference space, 10,000 square feet of retail, several themed restaurants, one three-meal restaurant, several bar/lounge areas, indoor and outdoor swimming pools, 35,000 square feet luxury spa and other amenities.

Categories: West, Hotels, Retail, Acquisitions/Dispositions, Development, Las Vegas