Document Text Content
An Iconic Offering
A 38.5 Acre
Development Site
on the Las Vegas Strip
Exclusive Agents
2
Marc D. Renard 213-955-6413
Vice Chairman
marc.renard@cushwake.com
Manfred W. Schaub 213-955-5128
Senior Director
manfred.schaub@cushwake.com
John C. Cushman III 213-629-6575
Chairman
john.cushman@cushwake.com
John Stinson (65) 6232 0878
Executive Managing Director
(65) 6232 0878
john.stinson@ap.cushwake.com
Lic. #616335
Cushman & Wakefield of California, Inc.
601 South Figueroa Street, Suite 4700
Los Angeles, California 90017
Lic: #955076
Geoffrey West 702-688-6936
Senior Director
gwest@comre.com
Commerce Real Estate Solutions
3773 Howard Hughes Parkway, Suite
100S
Las Vegas, NV 89169
Confidentiality & Conditions
This is a confidential Offering Memorandum intended
solely for your limited use and benefit in determining
whether you desire to express any further interest in
the purchase of the 38.5-acre site (“the Property”).
This Offering Memorandum was prepared by
Cushman & Wakefield and Commerce Real Estate
Solutions (“Cushman & Wakefield”) and has been
reviewed by representatives of the owners of The
Property (“the Ownership”). It contains selected
information pertaining to the Property and does not
purport to be all-inclusive or to contain all of the
information that prospective purchasers may desire.
It should be noted that all information provided is
for general reference purposes only in that such
information is based on assumptions relating to the
general economy, competition, and other factors
beyond the control of Ownership and, therefore, is
subject to material variation. Additional information
and an opportunity to inspect the Property will be
made available to interested and qualified prospective
purchasers. Neither Ownership nor Cushman &
Wakefield nor any of their respective officers have
made any representation or warranty, express or
implied, as to the accuracy or completeness of this
Offering Memorandum, any of its contents, or any
other materials provided as a courtesy to facilitate
prospective purchaser’s own investigations of the
Property, and no legal commitments or obligations
shall arise by reason of this Offering Memorandum,
its contents or any further information provided by
Cushman & Wakefield regarding the Property.
It is essential that all parties to real estate transactions
be aware of the health, liability and economic impact
of environmental factors on real estate. Cushman &
Wakefield does not conduct investigations or analyses
of environmental matters and, accordingly, urges its
clients to retain qualified environmental professionals
to determine whether hazardous or toxic wastes
or substances (such as asbestos, PCB’s and other
contaminants or petro-chemical products stored in
underground tanks) or other undesirable materials
or conditions are present at the Property and, if so,
whether any health danger or other liability exists. Such
substances may have been used in the construction or
operation of buildings or may be present as a result of
previous activities at the Property.
Various laws and regulations have been enacted at
the federal, state and local levels dealing with the use,
storage, handling, removal, transport and disposal of
toxic or hazardous wastes and substances. Depending
upon past, current and proposed uses of the Property,
it may be prudent to retain an environmental expert to
conduct a site investigation and/or building inspection.
If such substances exist or are contemplated to be
used at the Property, special governmental approvals
or permits may be required. In addition, the cost
of removal and disposal of such materials may be
substantial. Consequently, legal counsel and technical
experts should be consulted where these substances
are or may be present.
Ownership and Cushman & Wakefield expressly
reserve the right, at their sole discretion, to reject any
or all expressions of interest or offers to purchase
the Property and/or terminate discussions with any
entity at any time with or without notice. Ownership
shall have no legal commitment or obligation to
any entity reviewing this Offering Memorandum or
making an offer to purchase the Property unless and
until a written commitment to purchase the Property
has been fully executed, delivered and approved
by Ownership and any conditions to Ownership’s
obligations thereunder have been satisfied or waived.
Except for representations and warranties expressly
set forth in such definitive, executed purchase and
sale agreement, Ownership makes and will make no
representations and warranties regarding the Property
and any prospective purchaser must rely entirely on
its own investigations and those of its agents and
consultants.
By receipt of this Offering Memorandum, you agree
that this Offering Memorandum and its contents are of
a confidential nature, that you will hold and treat it in
the strictest confidence, and that you will not disclose
this Offering Memorandum or any of its contents to
any other entity without the prior written authorization
of Ownership nor will you use this Offering
Memorandum or any of its contents in any fashion or
manner detrimental to the interest of Ownership or
Cushman & Wakefield.
The terms and conditions stated in this section will relate
to all of the sections of the Offering Memorandum as
if stated independently therein. If, after reviewing this
Offering Memorandum, you have no further interest
in purchasing the Property at this time, kindly return
this Offering Memorandum to Cushman & Wakefield
at your earliest possible convenience. Photocopying or
other duplication is not authorized.
Table of Contents
Executive Summary
The Offering.......................................................................................... 5
3
2nd Largest Hotel
4,752 Rooms
3rd Largest Hotel
4,408 Rooms
4th Largest Hotel
4,008 Rooms
The Largest Hotel
6,852 Rooms
MGM GRAND
THE LOT
750’ of Direct Frontage
505’ FAA Approval
Located adjacent to
4 of the 5 largest hotels
in North America
4
Executive
Summary
The Offering
Cushman & Wakefield, Inc., as exclusive advisor, is pleased to offer for sale a remarkable 38.5-
acre development site on the world famous Las Vegas Strip. Situated directly across from the
Mandalay Bay Resort, an investor could obtain permits within approximately nine months to
develop a visionary themed large-scale resort and gaming destination with up to 10,000 hotel
rooms. An approved height allowance of up to 505 feet will make any future development on
the Site the most highly visible on the Strip to the more than 42 million annual visitors travelling
through McCarron International Airport. In addition private aircraft “high roller” terminals
adjacent to the Site create a very unique opportunity to provide exclusive direct jet access points.
Las Vegas gaming revenues, levels of new development, visitor volumes and visitor spending
are all approaching record levels making the timing associated with the development of the Site
extremely compelling.
Las Vegas possesses a unique international appeal that draws an incredible 3.5 million visitors
each and every month. The growth in tourism is only expected to accelerate with McCarran
International Airport anticipated to be the fifth fastest growing airport in the country over the next
10 years with passenger volume projected to reach 55 million. Las Vegas’ growth is expected to
be bolstered by a mix of additional seats by domestic and international carriers through more
flights and larger aircraft and new service from international carriers including nonstop flights
from China within three years. Over 4 million square feet of new convention space and more than
$6 billion of new resort, retail and entertainment developments continue to elevate the overall
“Las Vegas experience”.
5
AEG/MGM
Sports Are
The Site
■■
Remarkable 38.5-acre site will support a themed, large-scale casino resort development
■■
Six to nine month approval process to break ground
■■
750 feet of direct Strip frontage
■■
In-place income generated by existing buildings
■■
505’ of FAA approved height allowance fronting the Strip
The Largest Hotel
6,852 Rooms
■■
H-1 zoning flexibility allows for resort casino/gaming, luxury retail, multifamily, retail, timeshare
■■
Direct visibility to 42 million visitors traveling through McCarran International Airport
■■
Views to south will be unobstructed forever due to lower buildable height restrictions on the south
■■
Existing streets bounding all sides of the Site provide excellent access
CONCEPTUAL PLANS FOR CASINO RESORT OF 9,360 ROOMS
6
Private Aircraft
“High Roller”
Terminals at LAS
Tropicana Ave
Reno Ave
MGM Grand
The Lot
Triple 5
Development
Project
Las Vegas Blvd
na
4th Largest Hotel
4,008 Rooms
3rd Largest Hotel
4,408 Rooms
2nd Largest Hotel
4,752 Rooms
Convention Space
2.1 Million SF
7
Strong Las Vegas Economy Justifies New Development
■ ■ $6 billion of under construction and planned Strip development is the greatest since 1950’s
■ ■ $45.1 billion in annual visitor revenue during 2014, a new record
■■
41.1 million visitors in 2014; 2015 is on track to hit 42 million, a new record
■■
4 million square feet of new convention space under development, a new record
■ ■ $9.6 billion in gaming revenues in 2014 near peak 2007 levels
■■
Visitor volume projected to increase by 500,000 every year for the foreseeable future
■■
Average hotel occupancy is 92% on the Strip
■■
Tier One hotel ADR was $232 in 2014
■■
Nearly 650,000 new residents since 2000, representing 47% growth during the past decade
■■
1.3 million more room nights were sold in 2014 over 2013
($ Billions)
50
45
40
35
30
25
24.6
LAS VEGAS VISITOR ECONOMIC IMPACT 2000 - 2014
Las Vegas Visitor Economic Impact
$28.7
33.7
31.5 31.9 31.6 32.8
$36.7
$39.4
41.6 $41.6
$36.8
$35.2
$40.2
$44.9 $45.0 $45.1
Attendance (millions)
7
6.5
6
5.5
5
4.5
4
3.9
LAS VEGAS CONVENTION STATISTICS
Attendance Conventions
6.3
6.2
6.2
5.9
5.7 5.7
5.0 5.1
5.0
4.9
4.5 4.5
5.1
5.2
30,000
25,000
20,000
15,000
10,000
# of Conventions
20
3.5
5,000
15
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
$45.1 Billion
Visitor Revenues hit New Record
3
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
4,000,000 Square Feet
Convention Space under Construction to Accommodate Demand
8
Surrounded By World Class Retail
RETAILERS TO THE SOUTH
RETAILERS TO THE NORTH
10
18 OF THE 30 LARGEST RESORTS
IN THE WORLD ARE ON THE STRIP
11
THE TRANSFORMATION
OF THE SOUTH SIDE OF THE STRIP
$100 Million Shops at Tropicana
Planned
$375 Million AEG-MGM 20,000
Seat Arena Under Construction
Luxury 300,000 Retail Frontage at
Excalibur Planned
Monte Carlo Frontage and Theatre
Under Construction
12
Mandalay Bay Convention
Expands to 2.1 Million SF
MGM Opened The Lot and City of Rock May 2015
drawing 300,000 people in four days
$6 Billion In New Development
■■
Group’s multi-billion dollar Asian-themed
resort on the Strip (expected to open in 2018)
and Alon Crown 1,100 room Alon breaking
ground in 2016.
■■
MGM & AEG’s 20,000-seat arena under
construction between New York-New York
and Monte Carlo will draw hundreds of
thousands of new visitors per year.
$4.5 Billion 3,000 Room Resorts World
Under Construction
■■
Major renovations are underway or complete
at The Venetian, Mandalay Bay, MGM Grand,
The Mirage, Bellagio, the New Tropicana Las
Vegas, SLS Hotel and Four Seasons Hotel.
$2 billion Alon Crown
Resorts Planned
Silverton Timeshares
Under Construction
13
Wyndam Blue Timeshares
Opened July 2015
$2.5 billion Convention Center
Expansion Planned
14
Offering Procedures
Cushman & Wakefield, Inc. (“C&W”) is contacting prospective
purchasers in order to solicit their interest in the acquisition
of The Site on Las Vegas Strip. The Property is being offered
on a strict “as-is” basis with the selection of the buyer being
influenced by the level of physical and economic due diligence
initially undertaken by prospective purchasers. In this regard,
detailed financial information, title reports, service contracts
and other relevant documentation are available for review.
Property Tours
Prospective purchasers are asked to contact C&W to arrange
specific times for property tours.
Offer Submission
Prospective purchasers are kindly requested to submit offers
to Cushman & Wakefield at their earliest convenience but no
later than XX, XX, XXXX at the address specified below:
Marc D. Renard
Vice Chairman
213-955-6413
marc.renard@cushwake.com
Private Aircraft
“High Roller”
Terminals at LAS
Cushman & Wakefield of California, Inc.
601 South Figueroa Street, Suite 4700
Los Angeles, California 90017
Facsimile: (213) 627-5995
15
750’ OF DIRECT FRONTAGE
16
The Site
The Site is comprised of 12 parcels totaling approximately 38.475 net acres located at the southeast corner of Las Vegas Boulevard
South and East Mandalay Bay Road on the world famous Las Vegas Strip.
Current improvements on the Site include the Desert Oasis Motel, The Oasis Apartments, a two-story office building at 3951 Las
Vegas Boulevard South and a one-story commercial building at 3953 Las Vegas Boulevard South. The former Skyvue development
planned for the northwest portion of the Property received FAA height approvals and was planned for the world’s tallest ferris
wheel approximately 467-feet tall and a two-story retail / convention complex. Two concrete support columns for the wheel,
approximately 240-feet tall, and four concrete foundations were built before construction was halted in August 2012.
The adjacent properties to the east fronting Haven Street are the signature private jet terminals of McCarran International Airport
and the private jet terminal of the Las Vegas Sands Corp; to the west of the Site are Mandalay Bay Resort Casino and Convention
Center, the Four Seasons Resort and Luxor Resort Casino; to the north of the Site are MGM’s music festival property “The Lot”
and the Tropicana Resort Casino; and to the south is undeveloped land primarily owned by the multinational conglomerate Triple
5 Group that is restricted by lower height limitations of approximately 284 feet.
Site highlights include:
■■
Income in-place of approximately $500,000 from existing tenants provides revenue while planning concept and designs
are approved
■■
Unique opportunity to create branding synergies with private ingress/egress points to the adjacent high roller jet terminals
■■
Preferred south Strip location adjacent to four of the largest resorts in North America (MGM Grand, Mandalay Bay,
Excalibur and Luxor).
■■
Established and high traffic location on the Las Vegas Strip
■■
Numerous world-class resorts, convention centers, luxury shopping, dining and entertainment attractions within walking
distance.
■ ■ Proximate to the I-15 and I-215 Freeways
Parcels, Land Area and Summary of Existing Improvements
17
NO.
ASSESSOR
PARCEL
ADDRESS PROPERTY USE 2014 NOI
YEAR
BUILT
ACREAGE
1 162-28-202-013 95 East Ali Baba Lane Former Casey Arms Apartments site/Undeveloped - - 8.965
2 162-28-301-001 47 East Mandalay Bay Road Former Happi Inn site/ Skyvue construction - - 0.769
3 162-28-301-002 47 East Mandalay Bay Road Former Happi Inn site/ Skyvue construction - - 0.45
4 162-28-301-010 3953 Las Vegas Boulevard South (1-story commercial): Psychic Sessions $18,000 1960 0.233
5 162-28-301-029 N/A Graded/Undeveloped - - 5.822
6 162-28-301-032 3951 Las Vegas Boulevard South (2-story): offices - Skyvue construction - 1998 3.348
7 162-28-301-033 N/A Graded/Concrete channel - - 3.767
8 162-28-301-034 3965 Las Vegas Boulevard South (2-story): Desert Oasis Motel & Apts- 48 rooms ($13,624) 1963 3.026
9 162-28-301-036 3941 Las Vegas Boulevard South Former Olympus Inn site/ Skyvue construction - - 1.76
10 162-28-301-037 N/A Skyvue construction - - 1.82
11 162-28-302-001 N/A Graded/Undeveloped - - 2.229
12 162-28-310-001 5316 Danville Lane, 5333 Bethel Lane The Oasis Apartments - 128 units $268,675 1984 6.286
TOTAL $273,051 38.475
UTILITIES
The Site has full utility services provided by the following:
■■
Electricity: NV Energy
■■
Natural Gas: Southwest Gas Company
■■
Water: Las Vegas Valley Water District
EXISTING INCOME
The existing improvements on the Site, inclusive of the Desert Oasis
Motel, Oasis Apartments and the strip retail building at 3953 Las
Vegas Boulevard generate approximately $275,000 in annual net
income.
■■
Sewer: Clark County Water Reclamation District
■■
Waste: Republic Services
18
Catholic
Church
ALI BABA LN
Quali Air
Center
“The Lot”
GILES STREET
(Former Casey
Arms Apartment)
Graded/
Undeveloped
Vacant
Kinder-Morgan Facility
HACIENDA AVE
Skyvue
Construction
Site
Concrete
Columns
Motel 8
Desert Oasis
Motel/Apartment
Work
Gate
Two-Stiory
Office Building
Chain
Link Fence
Building A
Cconcrete Channel
Crushed
Asphalt Gravel
DANVILLE LN.
The Oasis
Apartments
BETHEL LN
Block Walls
HAVEN STREET
Improvements MANDALAY BAY ROAD and Access
Existing streets bound all sides of the
Site provide excellent access. Las Vegas
Boulevard South is a fully improved six
lane arterial with two main traffic lanes
in each direction where it fronts the
Site. East Mandalay Bay Road is a fully
improved two lane collector McCarranstreets with
one traffic lane in each Airport direction. Haven
Property
Street is a fully improved two lane street
with one traffic lane in each direction.
Four Seasons
Hotel
Laughing
Jackalope