weather icon Clear

Chunk of Las Vegas Strip sold for $172M

Updated June 28, 2019 - 7:37 pm

A chunk of the Strip has sold for a big price and is slated for new retail offerings.

New York investment firm Gindi Capital announced Friday it bought 9.5 acres of real estate along Las Vegas Boulevard for $172 million, or about $18 million an acre.

The holdings include the Hawaiian Marketplace retail plaza and the low-slung Cable Center Shops next door.

Gindi is “working with its development and design teams to unveil plans for a new flagship retail, entertainment and dining experience,” the announcement said.

It did not elaborate, and a representative for Gindi said the company is not doing interviews at this time.

Gindi, co-owner of the nearby Showcase mall, bought the buildings from New York investment firm Spectrum Group Management.

Michael Parks of CBRE Group, a former listing broker for the site, said that he expects Gindi to tear down the buildings and develop a new project and that this section of Las Vegas Boulevard, between Harmon and Tropicana avenues, has “a massive number of people walking” around.

He also said the purchase shows the best use for land on the casino-choked Strip nowadays isn’t always a hotel.

If someone bought nearly 10 acres on Las Vegas Boulevard 20 years ago, it was a safe bet the buyer would build a casino-resort, Parks agreed.

“Times have changed, for sure,” he said.

Gindi’s purchase comprises more than half of the property Spectrum put on the market last year for $800 million.

A multibillion-dollar, Elvis-themed resort reportedly was planned for the site years ago. Spectrum acquired the property out of bankruptcy in 2010, after the economy crashed.

Spectrum managing partner Jeff Schaffer confirmed the sale to Gindi and that his firm recently sold a Walgreens building next to Gindi’s new holdings for $30 million to the drugstore chain.

Walgreen Co. closed the purchase June 7, property records show. The pharmacy giant declined to comment Friday night.

Spectrum initially owned 18 acres on that part of the Strip and wanted to sell it all at the same time. But the buyer pool for such a large, expensive property was small, and Spectrum didn’t get the price it wanted, so it decided to sell in pieces, Schaffer said.

In 2017, Spectrum sold the now-demolished Smith & Wollensky building to Showcase owners Gindi and Jordache jeans founders the Nakash family for $59.5 million.

“We’re exceeding our expectations at this point,” he said of the prices his group is fetching.

Spectrum still owns about 6 acres at the corner of Harmon and Las Vegas Boulevard. Schaffer said his group has received offers of $50 million an acre for part of that section but added he wants to sell it all in one deal.

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
Live music and EDM dominate the night on day 2 of A’Le’Innstock
After sunset bands rocked the crowds at A’Le’Innstock in Rachel, Nevada on the second night of the event.
iPhone 11 Release
Local Las Vegas long time Apple product consumer shares her excitement for the new iPhone 11 release Downtown Summerlin. (Elizabeth Page Brumley/Las Vegas Review-Journal)
Lihi Levin talks about a mobil app Dropit - VIDEO
Lihi Levin, regional manager at Dropit Shopping, talks about a mobil app Dropit. The app lets customers leave their shopping bags at a store then have them delivered the same day to their home or hotel so they can shop without carrying multiple bags all day. (Bizuayehu Tesfaye Las Vegas Review-Journal) @bizutesfaye
North Las Vegas company prepares for Mars - VIDEO
Robert Bigelow and his Bigelow Aerospace manufacturing facility played host to eight NASA astronauts and 60 engineers this week getting to know the company’s B330 autonomous, expandable space station. (Elizabeth Brumley/Las Vegas Review-Journal)
Las Vegas developer talks about a new apartment complex called “the yoU”
Frank Marretti lll, founder of G2 Capital Development, talks about his new apartment complex called “the yoU” near UNLV. (Bizuayehu Tesfaye/Las Vegas Review-Journal) @bizutesfaye
Steel cables will hoist roof at Allegiant Stadium - VIDEO
Stainless steel cables are being put into place at Allegiant Stadium to begin the process of putting the roof on the 65,000-seat stadium in Las Vegas. Stadium Chief Operating Officer Don Webb explains how the cables will be used to get the roof put on the future home of the Raiders and UNLV football. (Heidi Fang/Las Vegas Review-Journal)
The last remaining Sigma Derby game in Las Vegas
Derek Stevens, owner of the D Las Vegas, talks about the last remaining Sigma Derby horse racing game in Las Vegas inside his casino floor. (Erik Verduzco/Las Vegas Review-Journal)
Popeyes Spicy Chicken Sandwich Review
Janine Blake of Las Vegas gives her review of the new Popeyes Spicy Chicken Sandwich at the restaurant’s location on west Bonanza Road on Thursday, Aug. 22, 2019,
SuperZoo 2019 takes over Mandalay Bay in Las Vegas
SuperZoo 2019 show for pet retailers brought pet products of all description to the Mandalay Bay Convention Center in Las Vegas. (Heidi Knapp Rinella/Las Vegas Review-Journal)
MSG Sphere at The Venetian to cost $1.2B plus
Scheduled to open in 2021, it is expected to be busier than Madison Square Garden in New York. (Michael Quine/Las Vegas Review-Journal)
Favorite products from SuperZoo 2019
Some of the fun and interesting pet products on display at the SuperZoo in Las Vegas at the Mandalay Bay Convention Center. (L.E. Baskow/Las Vegas Review-Journal)
MAGIC Convention Day 3
The fashion trade show MAGIC, held Monday through Wednesday at the Las Vegas Convention Center. (Elizabeth Brumley/Las Vegas Review-Journal)
MAGIC Las Vegas - Day One
The biannual MAGIC convention show opened Monday at the Las Vegas Convention Center. (Elizabeth Brumley/Las Vegas Review-Journal)
Allegiant celebrates naming deal with tailgate party
Allegiant Air employees celebrate with a tailgate party after the company’s naming deal with the Raiders for the new Las Vegas stadium.
Nevada's sportsbook operators welcome competition
Sportsbook operators from near and far are looking to get into in the established Nevada market, experts say. (Las Vegas Review-Journal)
Get a first look of MSG Sphere construction in Las Vegas
Representatives of The Madison Square Garden Company give the first glimpse of progress Tuesday of the under-construction MSG Sphere — a first-of-its-kind performance venue with high-tech audio and visual capabilities.
There's a new place to play board games in Las Vegas
Matt Smiciklas, co-owner of Boarding School Games, talks about the new Las Vegas business that he co-owns with Emily Labejof. Dedicated tabletop gamers can choose from more than 500 games to play for free in-store. The doors open to the public Saturday, July 20, 2019. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Renovations at the STRAT
Analysts say the $140 million renovation project at The STRAT, formerly the known as the Stratosphere, could help the hotel-casino compete with the evolving north side of the Las Vegas Strip. (Bailey Schulz/Las Vegas Review-Journal)
SLS Las Vegas will become Sahara Las Vegas
Owner Alex Meruelo announced during a special event at the SLS Las Vegas that the hotel-casino will become Sahara Las Vegas in its next iteration. Meruelo said $150 million dollars will be spent to renovate the current property. (Heidi Fang/Las Vegas Review-Journal)
Aircraft hinge maker moves to "business friendly" Nevada
Doug Silva, president of Aircraft Hinge, Inc. in Las Vegas, makes every type of hinge for every type of airplane. Silva talks about his company and why he moved it to Nevada. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Hilton Hotels leader Barron Hilton dead at age 91

Hilton Hotels leader and philanthropist Barron Hilton played an influential role in Las Vegas gaming history, helping to bring “real legitimacy” to the industry on Wall Street, a retired company executive said Saturday.

UAW strike puts Trump, GOP in political bind in key states

Led by President Donald Trump, GOP officials have largely avoided taking sides in the strike that threatens to upend the economy in Michigan.