weather icon Mostly Cloudy

Faraday Future trying to sell 900+ acres of North Las Vegas land

Faraday Future is trying to sell more than 900 acres of land at Apex Industrial Park, offering up the site where it bailed on building an auto plant.

But will it find a buyer?

The startup electric car maker, whose never-built factory was a black eye for Nevada lawmakers, announced March 13 that it wanted to sell the North Las Vegas project site, some 30 miles northeast of the Strip near the Interstate 15-U.S. Highway 93 interchange.

The listing — 913 acres for $40 million — came nearly two years after Faraday scrapped the $1.3 billion project and more than three years after the Legislature approved a $335 million incentive package for the much-hyped car plant.

Faraday has found at least one buyer before. It reached a deal by late last year to sell the land for an undisclosed sum to New York investment firm Stonehill Capital Management, county records show, but the deal never closed.

Still, it faces hefty competition from other sellers in and around Apex who are offering smaller, easier-to-digest parcels — all in an area, no less, that has plodded along for years with little development.

Besides Faraday’s property, at least 2,000 acres of land, spread among nine listings that range from almost 100 acres to 420 acres each, are up for sale in the Apex area, as seen on listing site LoopNet.

‘Massive parcel’

Faraday almost surely has a smaller pool of potential buyers than other industrial-land sellers in the valley. If you only need 30 or 50 acres for a project, why buy 900?

“I don’t know of any developers that would take down a site that big. … It’s just a massive parcel,” said MDL Group broker Jarrad Katz, an industrial-property specialist.

On top of that, Apex is a decades-old, desert industrial park that builders have largely avoided amid a shortage of utility service.

Colliers International broker Dan Doherty, an industrial specialist, said he would love to see a land developer buy Faraday’s site and put in roads and other infrastructure. But given Apex’s history of land sales and little construction, he figures a speculator will pick it up instead.

Apex, he noted, has been around for years but remains “mostly vacant.”

“It’s always just been a back-and-forth land flip,” Doherty said of the industrial park.

More utility service is on the way. North Las Vegas and private landowners teamed up last year to start building a 12-mile surface water pipeline to Apex, and a 750,000-gallon elevated water tank is also in the works.

Last summer, when city officials announced that the pipeline’s groundbreaking ceremony was held, the news release declared: “Decades-old problem solved: Water coming to North Las Vegas’ Apex Industrial Park.”

The Nevada Department of Transportation also recently finished a $63.4 million project that overhauled the I-15-U.S. 93 interchange and widened a 5-mile stretch of U.S. 93, NDOT spokesman Tony Illia said.

Legislature love

State lawmakers approved Faraday’s incentive package at a special session in December 2015, though the company’s ownership was largely shrouded in secrecy at the time, it didn’t have a publicly identified CEO, and it hadn’t started selling cars.

Faraday bought 930 acres at Apex in 2016 for around $29.4 million, property records showed, and broke ground on the project that year. Its total acreage is now lower because it sold and traded some land, listing broker Danielle Steffen of Cushman & Wakefield said earlier this month.

The startup planned to build a 3.4 million-square-foot plant that could produce up to 150,000 electric vehicles annually, state records show. But construction stalled amid reports of financial troubles, and Faraday bailed on the project in July 2017, saying it wanted an existing facility instead.

The next month, it reportedly leased a 1 million-square-foot former tire plant in central California.

Faraday’s failure-to-build hopefully won’t be forgotten, especially if state legislators want to roll out the red carpet for an unproven company again. But for now, Faraday can’t fully exit Southern Nevada until it sells its land.

Assuming, of course, someone wants it.

Contact Eli Segall at esegall@reviewjournal.com or 702-383-0342. Follow @eli_segall on Twitter.

Don't miss the big stories. Like us on Facebook.
Business Videos
How much do Las Vegas casino CEOs make?
Las Vegas gaming CEOs made anywhere between $1 million and $24 million last year, according to company filings with the U.S. Securities and Exchange Commission. ((Las Vegas Review-Journal)
30-year-old Rio needs a little TLC
Nearly 30 years after the Rio opened, the red and blue jewel that helped catapult Las Vegas to a new level with its buffet and nightclub has lost its status along with its shine.
The latest on the Drew Las Vegas - VIDEO
Eli Segall recounts his tour of the Drew Las Vegas, formerly the Fontainebleau, on the Las Vegas Strip. (Michael Quine/Las Vegas Review-Journal)
Pinball Hall of Fame to move near south Strip
Operators of the Pinball Hall of Fame have been approved to build a new, larger arcade near the south edge of the Strip on Las Vegas Boulevard near Russel Road. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
National Hardware Show underway Las Vegas
The National Hardware Show kicked off Tuesday at the Las Vegas Convention Center (Mat Luschek / Review-Journal)
Caesars for sale?
Caesars Entertainment Corp. has been swept up in takeover speculation since the company’s share price tumbled last year amid disappointing earnings and concerns over a recession. Amid the decline, hedge funds scooped up shares. Billionaire activist investor Carl Icahn began buying shares of Caesars as early as January. Icahn acquired nearly 18 percent by mid-March. In February Icahn called on the Caesars board to study a sale as a way to boost shareholder value.
Las Vegas home prices
Las Vegas home prices grew fastest among major markets in February for the ninth straight month. But amid affordability concerns, the growth rate has slowed down. Southern Nevada prices in February were up 9.7% from a year earlier, according to the latest S&P CoreLogic Case-Shiller index. The last time Las Vegas' price growth fell below 10% was in September 2017, S&P Dow Jones Indices reported.
Free Parking Coming To Wynn
Free parking will come to the Wynn and Encore resorts on May 1, 2019. (Mat Luschek / Review-Journal)
Founding Venetian employees talk about 20 years at the Strip resort
The Venetian, which opened May 3, 1999, is celebrating 20 years on the Las Vegas Strip. Seven original employees talk about opening the luxury resort and working there for two decades. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Circa aiming for December 2020 opening
The 1.25-million-square-foot property will have 44-stories and 777-rooms. It will also have a separate nine-story, 1,201-space parking garage.
Boxabl official explains the building concept
Boxabl business development manager Galiano Tiramani shows off a room built by his company. (Blake Apgar/Las Vegas Review-Journal)
TI/Mirage Tram reopens
The tram that shuttles guests between TI and Mirage reopened this week after being closed for much of 2018.
Las Vegas Convention Center expansion taking shape
Renderings and actual footage show how the Las Vegas Convention Center is evolving.
Former Starbucks CEO Howard Schultz at Las Vegas convention
Former Starbucks CEO and potential presidential candidate Howard Schultz spoke at the Epicor Insights user conference at Mandalay Bay Convention Center Wednesday, April 17, 2019. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Drew Las Vegas to open in the second quarter of 2022
The 67-story Drew Las Vegas is slated to open in the second quarter of 2022 at the north end of the Las Vegas Strip. (Michael Quine/Las Vegas Review-Journal)
NAB Day 1 (Time Lapse)
NAB kicked off at the Las Vegas Convention Center on Monday, April 8, 2019. (Mat Luschek / Review-Journal)
National Association of Broadcasters Show shows 1mm thick 8K TV with 22.2 channel digital sound
Japan’s NHK Science & Technology Research Laboratories booth featured a 1mm thick 8K TV system used in conjunction with a 22.2 channel digital sound system at the National Association of Broadcasters Show at the Las Vegas Convention Center. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Nevada shoppers react to Smith’s no longer accepting Visa credit cards
On March 1, Smith’s announced that it would no longer be accepting Visa credit cards at any of its 142 supermarkets, including the 45 in Nevada.
Massachusetts Gaming Commission asks how long Wynn executives knew about misconduct
Business reporter Rick Velotta gives an update on the adjudicatory hearing on the suitability of Wynn Resorts to retain its gaming license in Massachusetts.
Henderson app developer part of Startup in Residence
Henderson based developers of the app On Point Barricade are taking part in Startup in Residence, a North America program dedicated to pairing tech companies with governments. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Sam's Town employees and customers talk of their love for the iconic casino
Longtime Sam's Town employees and customers love each other and love their casino. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Las Vegas apartments rents
Las Vegas’ apartment market has accelerated in recent years. Developers are packing the suburbs with projects, landlords are on a buying spree, and tenants have filled buildings.
William Boyd talks about the birth of Sam's Town
On the eve of the 40th anniversary of Sam's Town, William Boyd, executive chairman of Boyd Gaming and son of hotel namesake Sam Boyd, talks about how the casino became one of the first local properties in Las Vegas. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
High Roller observation wheel turns five
The world’s tallest observation wheel celebrates it’s fifth year on Sunday, March 31, 2019. (Michael Quine/Las Vegas Review-Journal) @Vegas88s
Escape Room Industry Growing In Las Vegas
Escapology employees discuss the growing escape room industry in the U.S. and Las Vegas. (Bailey Schulz/Las Vegas Review-Journal)
Impact of parking fees on visiting the Las Vegas Strip
There are no data showing a relationship between Strip resort and parking fees and the number of out-of-state visitors to Las Vegas. But there are data showing a relationship between Strip parking fees and the number of local visitors to the the Strip. ‘’As a local, I find myself picking hotels I visit for dinner or entertainment, based on whether they charge for parking or not,”’ said David Perisset, the owner of Exotics Racing. ‘’It is not a matter of money, more of principle.’’ A 2018 survey by the Las Vegas Global Economic Alliance found 36.9 percent of Clark County residents reported avoiding parking at Strip casinos that charge for parking. 29.1 percent reported avoiding using any services from a Strip casino that charges for parking.
MGM's sports betting deals
MGM Resorts International signed a sports betting sponsorship agreement with the NBA in July It was the first professional sports league to have official ties with a legal sports betting house. The deal came just two months after the U.S. Supreme Court overturned a law prohibiting sports betting in most states. In October, MGM became the first gaming company to sign a sports betting partnership with the NHL. In November, MGM became the first gaming company to sign a sports betting partnership with the MLB. Financial terms of Tuesday’s deal and earlier partnerships have not been announced.
Faraday puts Las Vegas land on the market
Nearly two years after Faraday Future bailed on its North Las Vegas auto factory, the company has put its land up for sale. (Michael Quine/Las Vegas Review-Journal)
El Cortez owner Kenny Epstein on running the iconic property
Kenny Epstein, owner of the El Cortez Hotel in downtown Las Vegas, talks about Jackie Gaughan mentorship and answers rumors about bodies in the basement at the mob-era casino. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
LVCVA recommends construction of underground people mover
The Las Vegas Convention and Visitors Authority announced the recommendation for an underground people mover for the convention center. The system would have the potential to expand and connect Downtown and the resort corridor all the way to McCarran. (Michael Quine/ Las Vegas Review-Journal)
Las Vegas home prices soaring, but still below bubble years

The peak boom-era median sales price of previously owned single-family homes was $315,000. Adjusting for inflation, the market has much more than a $15,000 gap from the previous high. In today’s dollars, the peak resale price was around $390,000.