Developer pays $12.5M for land near Las Vegas Strip

A local developer has purchased a spread of land near the Strip, buying it for much less than the sellers previously hoped to fetch.

Developer Michael Ochoa acquired 12.1 acres off Paradise Road near the soon-to-open Virgin Hotels Las Vegas, a mile east of Las Vegas Boulevard, for $12.5 million, property records show. The sale, by Chinese investors, closed last month.

Real estate activity just east of the Strip had been gaining momentum before the coronavirus pandemic crippled tourism, the bedrock of Las Vegas’ casino-heavy economy. There was never a guarantee even before the outbreak that Ochoa’s new tract would trade hands, though it’s near a few sites with projects in the pipeline.

The new owner’s namesake company, Ochoa Development Corp., is based in Henderson. Lou Ochoa, a representative for the buyer, confirmed the purchase Wednesday and said his group is trying to put together a “really cool project.”

He said they hope to be under construction within the next 12 months but then said that it could take 24 or 36 months and that his group does not want to share any details yet.

“We don’t have any comment on it,” he said.

The property was on the market in 2017 for around $42.3 million and at one point for $25 million, marketing materials show. Listing agent Mark Anthony Rua, of ERA Brokers Consolidated, noted this week the land has limited frontage on Paradise, figuring that contributed to its less-than-expected sales price.

He also said his clients wanted to unload the property this year.

“That was the best price they could get with a buyer that would close this year,” he said.

The land is next to a property that sold early last year for a hefty sum: The Daneshgar family, owners of Southern California real estate firm 3D Investments, bought nearly 60 acres of mostly empty real estate there for $130 million.

Ochoa’s new holdings are also near the 1,500-plus-room Virgin Hotels Las Vegas, which is scheduled to open Jan. 15 after its roughly $200 million transformation from the Hard Rock Hotel, and next to the long-shuttered former Atrium hotel, which is slated to be torn down and replaced with a 480-unit Siegel Suites apartment complex.

The Siegel Group, owner of the Atrium, plans to start demolition in the second quarter next year, according to Senior Vice President Michael Crandall.

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