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LAS VEGAS-A 38-acre site across Las Vegas Boulevard from Mandalay Bay Resort & Casino is coming to market. Landowner Howard Bulloch, a local real estate executive, has retained the global gaming groups of CB Richard Ellis and Goldman Sachs to market the property. Given recent comparables, the purchase price could hit $1 billion.

The site is located at the south end of the six-mile stretch of Las Vegas Boulevard known as the Las Vegas Strip. CB Richard Ellis says the property will be marketed to the world’s largest development and gaming companies as the last opportunity on the Strip to control enough land for a large mixed-use project. Local CB Richard Ellis brokers John Knott, Carlton Geer and Michael Parks will be at the forefront of the process on the local level.

Land with Strip frontage has recently been sold or put under contract for between $17 million and $35 million per acre. Most recently, earlier this month, FX Luxury Realty paid $36.7 million per acre ($180 million plus assumed debt) for the 50% interest it did not already own in 17.7 acres fronting the east side of the Las Vegas Strip immediately south of Harmon Avenue. The interest was acquired from Africa-Israel Investments Ltd. An Elvis-themed resort is expected, if not a sure thing.

In May, Elad Properties agreed to acquire the 34.5-acre New Frontier property on the Strip from Wichita billionaire Phil Ruffin for $34.8 million per acre. Elad plans to raze the existing casino and spend an additional $3.5 billion on a new resort that is to include a 3,500-room ultra-luxury hotel, condominiums, retail shops, restaurants and convention space.

Also in May, MGM Mirage paid two different owners approximately $17 million per acre for 33.5 contiguous acres that abut both its Circus Circus resort as well as Las Vegas Boulevard, giving the company a total of 102 acres to master plan. MGM is now talking with Kerzner International Holdings Ltd. about a joint venture to develop a multibillion resort.

In June, Christopher Milam paid $40 million to maintain his option to acquire 27 acres fronting the Las Vegas Strip south of Sahara Resort for $475 million, or $17.6 million per acre. The Texas developer is planning a $5-billion development for the site that would include the tallest building in the Western hemisphere. Milam has one year to exercise the option as long as he starts making monthly $2-million option payments beginning in October.

Parks tells GlobeSt.com that Bulloch has been assembling the parcel for some time. The property includes some operating properties, including an apartment complex and a couple of small hotel properties, Parks says. The marketing effort will not include a formal deadline for offers, Parks says. One likely interested party is MGM Mirage Inc., which owns Mandalay Bay, the adjacent Luxor and a 15-acre parcel that abuts the site that is coming to market.

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