LAS VEGAS-Tel Aviv-based IDB Development Corp. has joined Israeli billionaire Yitzhak Tshuva’s New York City-based Elad Properties in a planned multi-billion redevelopment of the 34.5-acre New Frontier casino-resort property adjacent to Wynn Las Vegas on the Las Vegas Strip. The two companies will reportedly have equal shares in the venture, according to local industry sources and published reports citing an announcement by IDB in Israel.

Elad Properties in May agreed to acquire the New Frontier property from Wichita billionaire Phil Ruffin for $1.2 billion. The sale is slated to close before the end of August. The redevelopment, to cost at least an additional $3.5 billion, is slated to include a 3,500-room ultra-luxury hotel, condominiums, retail shops, restaurants and convention space.

The plan is to break ground for the project in 2008 and have it up and running in 2011. The goal is to recreate New York’s City’s Fifth Avenue on the Las Vegas Strip and be branded after New York City’s Plaza Hotel, which Elad acquired in 2004 and is converting to condominiums.

As part of the sale, New Frontier will be permanently shut down before the sale closes. Longtime resort broker David Atwell, who initiated the transaction, told in May that the closing of the resort is meant expedite the sale as well as the redevelopment of the property. Had the buyer wanted to continue operating the property, the transaction would have been subject to gaming licensing, which can take a year or more, he said.

Ruffin acquired the acreage in the late 1990s for less than $200 million, according to published reports. Ruffin had been planning a Swiss-themed, Montreaux-brand resort for the site, for which he says he had lined up $2.7 billion in financing. His reasons for selling reportedly include the rising cost of construction and the relatively low 15% federal tax on capital gains.

The purchase price translates to a per-acre price of more than $34 million, double what MGM Mirage recently paid for a similarly-sized chunk of land one mile further north on Las Vegas Boulevard at Sahara Avenue. “This will be a new record price for Strip property…,” said Atwell, whose company is called Resort Properties of America.

IDB is involved in other real estate projects in Las Vegas. The company’s Property & Building Corp. unit is an equity investor in the Village at Queensridge, a 1.35-million-sf, 18-building development that includes 340 luxury residential units, 450,000 sf of retail and restaurant space, and subterranean parking for some 3,300 vehicles. The $850-million development in the master-planned community of Summerlin is slated for completion in late 2008. IDB is also providing the necessary equity for One Queensridge Place, a related 219-unit condominium tower that recently topped out and is 80% sold.

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

Once you are an ALM digital member, you’ll receive:

  • 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

*May exclude premium content
Already have an account?


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

GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.