Faraday Future puts $40M price tag on North Las Vegas land — VIDEO

Updated March 14, 2019 - 7:06 pm

Nearly two years after Faraday Future bailed on its North Las Vegas auto factory, the company has put its land up for sale.

Faraday is trying to sell more than 900 acres at Apex Industrial Park for $40 million, after it shifted production to a facility in Central California.

The sales effort stems from “the ongoing optimization of business strategies” at Faraday, including “global reorganization” and a reduction of its “non-core assets,” the company said in a news release late Wednesday.

Faraday’s never-built car plant was a black eye for Nevada’s economic development efforts, and the land listing comes after a deal to sell the property to a New York investment firm fell through, county records show.

Listing broker Danielle Steffen of Cushman & Wakefield said the car company is selling 913 acres, and that its “preference” is to sell the land all at once, as opposed to unloading it in pieces to various buyers.

According to Steffen, work crews graded 700 acres of the project site but didn’t build anything.

“While we are disappointed that Faraday Future’s plan for an electric car manufacturing plant in North Las Vegas never came to fruition, we are hopeful that whoever buys the 900 acres will develop the property creating long-term jobs for Nevadans,” Keith Paul, spokesman for the Nevada Governor’s Office of Economic Development, said in an email Thursday.

Why now?

John Schilling, Faraday’s director of public relations, said the startup waited nearly two years to sell because it was contemplating production strategies and eventually decided to focus on its California facility.

Sam Abuelsamid, a principal analyst for market research firm Navigant, said he was surprised the company held the land for so long amid financial troubles. Faraday said in October that it went through a “serious and unexpected cash shortfall,” and had to reduce salaries and “let go of some of our valued employees.”

Chinese real estate company Evergrande agreed in January to restructure a $2 billion investment in the startup. But according to Abuelsamid, Faraday is likely still coming up short on cash.

“Given their challenges in trying to raise more money, they’re probably getting rid of anything they can to get as much cash as they can to keep the lights on,” he said.

Schilling said the land sale should support the launch of Faraday’s flagship electric vehicle, FF 91, by the end of 2019. The company also plans to use the proceeds to continue development of the FF 81 — set to launch in mid-2020 — and bring back furloughed employees.

Clark County records show that Faraday reached a deal by late last year to sell its project site, located near the Interstate 15-U.S. Highway 93 interchange, for an undisclosed sum to Stonehill Capital Management in New York. The deal never closed.

Stonehill did not return calls seeking comment Thursday. Las Vegas attorney Greg Garman, who, records indicate, worked with Stonehill on the sale, said Thursday that “we have no comment.”

Schilling declined to comment on the deal.

Millions invested

The sale announcement comes after the city of North Las Vegas and private landowners teamed up last year to start building a 12-mile surface water pipeline to Apex, bringing needed infrastructure to an isolated industrial park that has plodded along for years with little development.

Gina Gavan, the head of North Las Vegas’ economic development department, said Faraday “invested millions of dollars” into the property.

“All a company has to do is put in its building or factory or whatever their business is,” she said. “The site is pad ready.”

In addition to the water pipeline, there’s a 750,000-gallon water tank under construction that’s set to serve the site.

The water line currently has 7,700 feet of pipe in the ground, and is set to complete its first phase by February 2021.

“All the utilities are out there,” Gavan said.

Big incentives to big flop

The Nevada Legislature convened a special session in December 2015 and approved a $335 million incentive package for Faraday. At the time, the company’s ownership was largely shrouded in secrecy, it didn’t have a publicly identified CEO and it hadn’t started selling cars.

Faraday had planned to build a 3.4 million-square-foot factory in Apex that would produce up to 150,000 electric vehicles annually, according to state records. It broke ground on the plant in 2016, but construction stalled and the company bailed on the project in July 2017.

That month, it cut a $16,000 check to Nevada’s Department of Taxation to pay back the only abatements it had received.

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

Overall, analyst Abuelsamid said, Faraday’s time in Southern Nevada was a learning opportunity for the state.

“You have to be very careful before you give that kind of level of tax abatements to unknown companies that have no experience in the business they’re breaking into,” he said.

Contact Eli Segall at esegall@reviewjournal.com or 702-383-0342. Follow @eli_segall on Twitter. Contact Bailey Schulz at bschulz@reviewjournal.com or 702-383-0233. Follow @bailey_schulz on Twitter.

Business Videos
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)
LVCVA/Boring Company Press Conference
The Las Vegas Convention and Visitors Authority announced a collaboration with Elon Musk's The Boring Company to develop and operate an autonomous people mover system for the Las Vegas Convention Center District.
International Pizza Expo includes green and gluten free
The International Pizza Expo at Las Vegas Convention Center included companies focused on vegan and gluten free, and plant-based pizza boxes. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
International Pizza Expo kicks off in Las Vegas
The first day of the International Pizza Expo at Las Vegas Convention Center is everything Pizza. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
T-Mobile program aids guests with sensory needs
A program at T-Mobile Arena is designed to provide a more sensory friendly experience for guests.
Photo Booth Expo
Danielle May talks about how Simple Booth transformed her Volkswagen bus into a business.
Nevada Gaming Commission's highest fines
The highest fines assessed by the Nevada Gaming Commission, according to commission Chairman Tony Alamo: 1) Wynn Resorts Ltd., $20 million, 2019 2) CG Technology (then known as Cantor G&W Holdings), $5.5 million, 2014 3) The Mirage, $5 million ($3 million fine, $2 million compensatory payment), 2003 4) Stardust, $3 million, 1985 5) Santa Fe Station, $2.2 million ($1.5 million fine, $700,000 compensatory payment), 2005 6) Las Vegas Sands, $2 million, 2016 7) CG Technology, $1.75 million, 2018 8) CG Technology, $1.5 million (also $25,000 in escrow for underpaid patrons), 2016 9) Caesars Entertainment, $1.5 million, 2015 10) Imperial Palace, $1.5 million, 1989 11) Peppermill Casinos, $1 million, 2014
Tiny Pipe Home vs Shipping Crate
A Tiny pipe home was displayed at the International Builders Show this week in Las Vegas.
Auto repair shortage affects Las Vegas
The auto repair industry is facing a national shortage of workers.
Franchising industry booming
Experts say Las Vegas is a hotbed for the franchise industry.
Africa Love owner talks about his store in Las Vegas
Mara Diakhate, owner of Africa Love, gift and decor store, talks about his store in Las Vegas. (Bizuayehu Tesfaye/ Las Vegas Review-Journal) @bizutesfaye
Developer gets approval to build homes at Bonnie Springs
The Clark County Planning Commission has approved a plan to build 20 homes on the site of Bonnie Springs Ranch. (Michael Quine/Las Vegas Review-Journal)
Dig This opens new location In Las Vegas
Remember when you were a kid and played with construction toys in the sand box? Dig This Las Vegas has the same idea, except instead of toy bulldozers, you get to play with the real thing. (Mat Luschek/Review-Journal)
Town Square developer Jim Stuart building again in Las Vegas
Las Vegas’ real estate bubble took developers on a wild ride, something Jim Stuart knows all too well. (Las Vegas Review-Journal)
Salon opens at Veterans Village
T.H.E. Salon, owned by Nicole Christie, celebrated their opening at the Veterans Village with a ribbon cutting ceremony.
Southwest Airlines considering Las Vegas-Hawaii flights
Southwest Airlines CEO Gary Kelly says the airline is "very focused" on Hawaii. Hawaiians have a strong presence in Las Vegas.The city’s unofficial status is “Hawaii’s ninth island.” In 2018, at least 2,958 people from Hawaii moved to Nevada. Of those, 88.7 percent moved into Clark County, according to driver license surrender data. According to the Las Vegas Convention and Visitors Authority, 310,249 people came to Las Vegas from Hawaii in 2018.
Fewer Nevadans are celebrating Valentine's Day
Fewer Nevadans are celebrating Valentine's Day. About 1.2 million Nevadans are expected to celebrate this year, a 5 percent drop from 2018. A growing number of people consider Valentine’s Day over-commercialized. Others weren’t interested in the holiday or had nobody to celebrate with. But spending is expected to rise. Those who do celebrate are buying for more people. The average American is expected to spend about $162 this year for Valentine’s Day, a 57 percent jump from a decade prior. Katherine Cullen, director of industry and consumer insights at NRF
Foreclosures of mansions in Las Vegas
Las Vegas was ground zero for America's foreclosure crisis after the housing bubble burst. (Eli Segall/Las Vegas Review-Journal)
Rick Helfenbein talks about the impact of tariffs on the clothing industry
MAGIC fashion convention showcases men's clothing trends
The MAGIC fashion convention has come to Las Vegas at the Mandalay Bay Convention Center to showcase some of the hottest clothing trends for men. (Nathan Asselin/Las Vegas Review-Journal)
Allegiant Air flight attendants learn how to handle a water landing
Field instructor Ashleigh Markel talks about training prospective flight attendants for Allegiant Air getting live training with a raft for a water landing at the Heritage Park Aquatic Complex in Henderson on Monday. (John Hornberg/Las Vegas Review-Journal)
Smith & Wollensky CEO Michael Feighery speaks
Smith & Wollensky CEO Michael Feighery speaks about the new Smith & Wollensky restaurant coming to the Grand Canal Shoppes at The Venetian in Las Vegas.
Smith & Wollensky CEO Michael Feighery speaks
Smith & Wollensky CEO Michael Feighery speaks about the new Smith & Wollensky restaurant coming to the Grand Canal Shoppes at The Venetian in Las Vegas.
Smith & Wollensky CEO Michael Feighery talks about Las Vegas return
Michael Feighery, CEO of Smith & Wollensky Restaurant Group, discusses the restaurant's upcoming return to the Las Vegas Strip.
Apartments to Come to Hughes Center
Developer Eric Cohen discusses his current building project at the Hughes Center office park in Las Vegas, Thursday, Jan. 31, 2019. Caroline Brehman/Las Vegas Review-Journal
Stratosphere to rebrand to The STRAT
The Stratosphere, a 1,150-foot-tall property in Las Vegas will be renamed The STRAT Hotel, Casino and Skypod.
TOP NEWS
Home Front Page Footer Listing