Updated December 12, 2022 - 11:59 am
For years, tenants at the Harbor Island apartments near the Strip had a sprawling, quiet tract of land next door.
Now, Formula One is developing a racetrack there — and the rental property’s new landlord is looking to sell for a hefty sum.
The Harmon at 370, as the apartment complex is now known, recently went on the market for nearly $189 million, after it traded hands this spring for $126 million.
The 21.4-acre site at 370 E. Harmon Ave., about a mile east of Las Vegas Boulevard, is being marketed as commercial land that is “suitable for hotel, resort, retail and mixed-use development,” as seen on listing site LoopNet.
Greg Campbell, a founding principal with landlord Laguna Point Properties, said Friday that his firm was approached about selling the property before it even closed its purchase, as it was under contract on the acquisition at the same time F1 was buying the plot next door.
“They get a whole following of people who want to be around them,” he said.
Campbell said his company is getting inquiries from groups with different ideas for the site. He expects a buyer to demolish the rental complex at some point and develop a project that caters to Las Vegas’ tourism industry.
Listing broker Mike Mixer of Colliers International noted that Harmon Avenue has seen plenty of activity lately.
Virgin Hotels Las Vegas debuted last year at the corner of Harmon and Paradise Road, after its roughly $200 million transformation from the Hard Rock Hotel. Houston billionaire Tilman Fertitta purchased around 6 acres at the corner of Las Vegas Boulevard and Harmon in June for $270 million and received county approvals in October for a 43-story hotel-casino project.
Mixer said the initial interest in Laguna Point’s property has been “pretty widespread,” spanning people outside the U.S., professional sports teams and F1 sponsors.
The racing league announced in March that it would hold a 50-lap Grand Prix in Las Vegas in November 2023. It said the 14-turn track will run for 3.8 miles, including down the Strip, with top speeds expected to reach around 212 mph.
In May, F1 parent company Liberty Media Corp. said it was buying 39 acres east of the Strip for $240 million. The property, at the corner of Harmon and Koval Lane, is expected to be the race’s starting point, according to a map of the route F1 previously released.
Colliers announced June 1 the land sale had closed, saying it represented Liberty Media in the deal. The same day, Laguna Point announced its purchase of the 996-unit apartment complex next door.
Both sites were acquired from real estate firm 3D Investments, which bought the properties in 2019 for a combined $130 million and sold them for a total of $366 million.
In Laguna Point’s news release, Campbell said there was a “lack of quality workforce housing near resorts and entertainment venues, and we intend to renovate the property to a very attractive level.”
He said Friday the company has upgraded a couple hundred units and repainted the complex.