Friday, September 12, 2003
Copyright © Las Vegas Review-Journal

Development starts on south Strip land

First two phases will include casino, time share

A sign Wednesday shows a rendering of South Pointe, a south Strip land parcel between Silverado Ranch Boulevard and Cactus Avenue, that will include a time share resort and a Coast Resorts casino. Photo by Amy Beth Bennett.

Development is under way on a 185-acre parcel of land on the south Strip, between Silverado Ranch Boulevard and Cactus Avenue, with a time-share resort and a casino planned for the first two phases.

The land was purchased for $36.7 million in December 2000 by GreenPark Cos., a Seal Beach, Calif.-based real estate company specializing in "brownfield redevelopment."

GreenPark entered a joint venture with Woodland Hills, Calif.-based Zenith Development, an affiliate of Zenith Insurance, which had assembled the parcel through more than 25 separate land transactions.

Coast Resorts has acquired 55 acres for its planned Southcoast casino. Florida time-share operator Berkley Group took down 40 acres to build 3,000 units in 30 12-story buildings.

The parcel is plotted out for another hotel and casino on 40 acres and mixed use of multifamily housing, retail and office space and possibly another time share project on the remaining 45 to 50 acres.

However, things could change, and the final phase could be developed as one piece, said Kevin Higgins, senior vice president of Voit Commercial Brokerage.

Higgins was recently hired by GreenPark to market the development, now being called South Pointe. He estimates the land is worth $500,000 to $650,000 an acre.

"They were talking about cutting up the 40 acres into five acres here, 10 acres there," Higgins said. "Do you really need to cut it up? Because one, if you cut up the pieces, you're committed. I believe, at least for six months, let us have a go at this."

Higgins said he'd like to talk to entertainment companies around the country that may be able to feed off the Las Vegas tourism industry.

A key component to the development of South Pointe is an interchange off Interstate 15 at Silverado Ranch, scheduled for completion about the time Southcoast opens in 2005.

Coast Resorts Chairman Michael Gaughan has submitted a large portion of the money needed to get the plans and permits for the interchange in motion with the Nevada Department of Transportation.

Another interchange could come a couple of years later at Cactus, Higgins said.

Randy Wheeler, chief operating officer of GreenPark, said he likes South Pointe's location off I-15 at the gateway to Las Vegas.

"We think the offramps are a great part of the project and then you look at all the new rooftops in the area," he said. "Southern Highlands is just going gangbusters and you've got a lot of upper-end and middle-level housing coming."

Wheeler said he thinks the corner of Las Vegas Boulevard and Cactus is a logical site for another casino, and Higgins said there's certainly room for one more gaming property.

"That's sort of what we're tying to accomplish, selling off the other casino site at Cactus, another interchange and it'll be first in line from California," Higgins said.

"You've got 3,000 acres of residential development in the immediate area. They're going to be looking for an opportunity to shop and play, as well as the tourist traffic off I-15."

Wheeler said it's taken a couple of years working with the Federal Emergency Management Agency to plan and complete significant flood control improvement projects for the land, which abuts huge drainage culverts passing under the freeway.