Construction on the second phase of Tivoli Village is 45 percent complete and the retail and office development in western Las Vegas is on track to open for the 2015 holiday shopping season.
The construction of the second phase with the erection of steel beams comes as Tivoli Village President Patrick Done said a feasibility study has been completed and discussions are underway with potential operators of a seven-story, 150-room boutique hotel that could be built as part of a third phase. The third phase, which would start construction in 2015 and be completed by 2016, would include 300 luxury condominium units and 20,000 square feet of retail space.
The second phase of the project in the 400 block of South Rampart Boulevard includes about 300,000 square feet of retail and about 85,000 square feet of office space. When completed in 2015, the development will have more than 500,000 square feet of retail and restaurants and 230,000 square feet of office space. Some 225,000 square feet of retail and 145,000 square feet of office space opened in April 2011.
The project, under construction by Hardstone Construction of Las Vegas, is estimated to cost $600 million for both phases. At one time before the Great Recession halted a 2009 opening and delayed construction, the project was estimated to cost more than $800 million.
Tivoli is owned by IDB, a holding company based in Tel Aviv, Israel. A partnership with Las Vegas-based EHB Cos. dissolved more than a year ago. Both developed the One Queensridge Place luxury condominium project across the street.
When the first phase opened in 2011, construction was already underway on the second phase and it was scheduled to open in 2012. Work slowed and the timetable was pushed out three years based on market demand, Done said.
“That ended up being a really good decision in terms of demand and activity that’s going on in the market today,” Done said. “We’re operating in a different world today than in 2011 and 2012.”
Tivoli reported auto traffic rose 30 percent in 2013 over 2012 and so far during the first three months of 2014, traffic rose 27 percent, Done said. That’s attributed to increased occupancy in the project, an improved economy and residents more familiar with the project, Done said.
“It’s not only a good sign for Tivoli, but for the market,” said Done, who welcomes additional retail development in the Summerlin area, including the opening of The Shops at Summerlin next to Red Rock Resort by the end of the year. “We’re very excited and to us it’s a sign that Las Vegas has turned the corner, that there’s interest from national and regional retailers in the Las Vegas market that has improved dramatically over the last couple of years.”
Done said in looking at the western side of town and how the market has changed and how national retailers are viewing Las Vegas versus how they viewed it three to four year ago suggests the city is back to pre-recession demand.
“The fact that we’re seeing new development is a good sign even though it’s all occurring at the same time,” Done said. “We’re all providing a terrific destination for our market. Three years from now, Tivoli Village and the other forecast to happen will make it a wonderful destination for the entire city.”
The second phase’s retail component is 45 percent completed and nothing is signed for the office space, Done said.
The second phase of the retail focuses on fashions and home furnishings and less on restaurants than the first phase, Done said. Some 35 percent of the first phase included restaurants and once the second phase is done the overall number will be 25 percent, he said.
That’s intentional as the restaurants in the first phase helped lure crowds throughout and build foot traffic for retail along with the office leasing, Done said.
There won’t be any large anchors in the second phase with the biggest store at 75,000 square feet. Tenant announcements have yet to be made. Tivoli is eyeing a seafood restaurant and entertainment use for the second phase.
The Tivoli condominium phase of the project will consist of three buildings with a height of five stories. Prices are expected to exceed $400,000.