Assuming Milam also made the $2.9-million payments required forApril and May, he and his equity partners have made approximately$70 million of non-refundable payments to Archon Corp. -- includingmore than $24 million that will not be applied to the purchaseprice, which jumped from $450 million last year following a missedoption payment.

|

Located immediately south of the Sahara hotel-casino, the siteis one of the last large available properties on the Strip that hasnot recently traded. Milam tied up the property in June 2006. InMay 2007, Australian billionaire James Packer invested $22.5million to gain a 37.5% interest in the ownership entity, which hadinitially had plans for a multi-billion-dollar, 5,000-room casinoresort on the property that would include the tallest building inthe Western Hemisphere at 1,888 feet.

|

Later that year, those plans were shot down by the FederalAviation Administration due to its proximity to McCarranInternational Airport. In December, Clark County commissionersapproved the site for 1,064-foot tower, which would be the tallestbuilding in the US, but plans have since been revised to a shorter,twin tower concept, sources familiar with the situation recentlytold GlobeSt.com.

|

Two months ago, published reports out of Australia stated thatPacker was growing wary of the opportunity and was looking to bebought out of the Wet 'n Wild site but would remain invested in theadjacent Fontainebleau Casino and Resort development. Milam,meanwhile, was reportedly hoping to retain his interest in theproperty. Neither Milam nor a Packer representative could bereached for comment.

|

Assuming the option is exercised in June and the transactioncloses in August, Archon will have received $78 million in optionpayments, approximately $33 million of which won't be applied tothe $475-million purchase price, taking the total purchase pricefor the property to approximately $508 million, or just under $19million per acre.

|

In September 2007, a partnership formed between MGM Mirage Inc.and Kerzner International Holdings valued 40 acres abutting theStrip and MGM's Circus Circus resort at $20 million an acre. Onemonth earlier, Israeli billionaire Yitzhak Tshuva's New YorkCity-based El-Ad Properties paid $1.24 billion or $34.7 million peracre for the 34.5-acre former New Frontier casino-resort siteimmediately north of Fashion Show Mall, across from Wynn LasVegas.

|

Despite the New Frontier sale, local industry sources tellGlobeSt.com that the current value of Strip land is probably veryclose to $20 million per acre.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.