X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

LAS VEGAS-In a little more than 24 hours, the historic Frontier Hotel Casino will be reduced to rubble. The wrecking ball and demolition crew are in place, waiting for the green light to implode the famed site.

The property is being demolished to make way for the Plaza Hotel complex, a multi-billion-dollar project. As reported on GlobeSt.com in August, a partnership of El-Ad Properties and Property & Building Ltd. completed a $1.24-billion acquisition of 34.5 acres fronting the Las Vegas Strip. The property is across from Wynn Las Vegas.

El-Ad Properties is a private real estate developer owned by Yitzhak Tshuva. El-Ad owns among other things the Plaza Hotel in New York City. Property & Building is a subsidiary of IDB Holding Corp. Ltd., which is controlled by chairman and CEO Nochi Dankner. Both companies are traded on the Tel Aviv Stock Exchange.

According to published reports, Property & Building took out a $625-million loan to pay for its share of the property. IDB Group USA and El-Ad Properties also provided $100 million each in loans, and will provide the $400 million balance from equity, according to the report.

The project is expected to cost nearly $6 billion at buildout. The property will include a casino and business center. The 1.5-million-sf development 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 2012.

As reported on GlobeSt.com and from other reports, the site has had some controversy attached to it. Resort broker David Atwell, who says he initiated the transaction, sued the parties involved for his 1% fee, which in this case would be $12 million. A lawsuit is still pending.

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
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

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

  • Free unlimited access to GlobeSt.com'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 ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.