Portion of Showcase mall sold for $93.5 million

A portion of the tourist-oriented Showcase mall on the Strip has been sold for $93.5 million, or about $960 a square foot, to Beverly Hills, Calif.-based Unilev Capital Corp. in a deal that closed in August, according to the Clark County Recorder’s office.

The mall’s 97,400-square-foot third phase, built in 2009 on the former Denny’s restaurant site, is anchored by Hard Rock Cafe, Denny’s, Ross Dress for Less and ABC Stores.

It’s affiliated with the 190,000-square-foot Showcase mall developed jointly in 1996 by Makena Development Corp. of Las Vegas and Cleveland-based Forest City Enterprises. Developers added a 43,000-square-foot second phase in 2000.

Showcase mall, next to the MGM Grand, is distinguished by the 100-foot Coca-Cola bottle and M&M’s World. Steven Spielberg, DreamWorks SKG, Sega Enterprises and Universal Studios teamed up to open the multimillion-dollar GameWorks arcade in the basement.

The seller was City Center Retail AG Showcase Phase III, a Delaware-based company controlled by Angelo, Gordon & Co. of New York.

Unilev Capital, founded in 1992, is a privately held real estate firm that partners with a select group of affiliated entities to acquire income-producing commercial properties with long-term investment potential.

The company’s portfolio includes high-end office buildings in Houston, Los Angeles and St. Paul, Minn., along with a shopping plaza in Houston. Unilev Capital bought three office buildings at the Houston Galleria in March for $176 million.

Calls to Unilev’s management headquarters in Houston and to Angelo, Gordon & Co. in New York were not returned Friday.

Phase three of Showcase mall now has 9,500 square feet of retail space available for lease at $135 a square foot per year, said Frank Volk, a retail broker with RKF Associates in Las Vegas working on Unilev’s behalf.

He expects to close a deal on the vacant space within the next couple of months, either with a restaurant or middle-market retail store.

Although suburban retail has struggled during the recession, Strip retail has held its own, Volk said. Sales per square foot at Planet Hollywood Resort’s Miracle Mile Shops are higher than they were in 2006, when the economy was steaming along, he said.

"The market in general has been pretty strong," Volk said. "At the end of the day, as long as you deliver a good product and the pricing is right, people will buy it. Look at Ross (Dress for Less). They’ve been very successful here and at the north end of the Strip."

About 45,000 people walk past the Showcase mall each day, Volk said.

The third phase features the three-story Hard Rock Cafe retail store, restaurant and concert venue with its signature neon guitar.

"It’s a fantastic property," Volk said. "That’s why this group bought it."

George Connor, vice president of retail at Colliers International in Las Vegas, said Showcase is a "jewel" on the Strip and a good buy for Unilev. Unlike the Forum Shops at Caesars, which has eight entrances for daily foot traffic of 40,000, Showcase gets a high concentration of tourists on the sidewalk in front of the shops and the merchandise for sale is more affordable, he said.

"There’s not much out there like that," Connor said. "They’ve got solid retailers with good credit."

Development has been halted on projects such as Fontainebleau, Echelon and the New Frontier, and it could be 10 years before anything starts happening again on the Strip, he said.

Los Angeles-based Holliday Fenoglio Fowler placed a $57.8 million construction loan for the third phase of Showcase mall in 2007. Working on behalf of City Center Retail and institutional investor Angelo, Gordon & Co., HFF arranged a two-year construction loan with a 75 percent loan-to-cost through KeyBank National Association. HFF also secured $106 million in financing for the first two phases of the Showcase mall.

Contact reporter Hubble Smith at hsmith@reviewjournal.com or 702-383-0491.

ad-high_impact_4
Business
Bellagio, MGM Resorts International’s luxury hotel turns 20
The more than 3,000-room Bellagio hotel is situated on the site of the former Dunes Hotel. The Dunes was imploded in 1993, and construction of the Bellagio started in 1996. It cost $1.6 billion to build, making it the most expensive hotel in the world at the time. The Bellagio was former Wynn Resorts Ltd. Chairman and CEO Steve Wynn’s second major casino on the Strip after The Mirage. MGM Resorts International acquired the property from Steve Wynn in 2000. (Tara Mack/Las Vegas Review-Journal)
Facial recognition software at G2E – Todd Prince
Shing Tao, CEO of Las Vegas-based Remark Holdings, talks about his facial recognition product. (Todd Prince/Las Vegas Review-Journal)
Former NBA player, Shaquille O'Neal, speaks about his new Las Vegas chicken restaurant
Former NBA player, Shaquille O'Neal, speaks about his new Las Vegas chicken restaurant. Bizuayehu Tesfaye/Las Vegas Review-Journal @bizutesfaye
Bobby Baldwin to leave MGM
MGM Resorts International executive and professional poker player Bobby Baldwin is set to leave MGM.
Caesars has new armed emergency response teams
Caesars Entertainment Corp. has created armed emergency response teams. They are composed of former military and law enforcement officials. "These teams provide valuable additional security capabilities,” Caesars spokeswoman Jennifer Forkish said. Caesars is hiring Security Saturation Team supervisors, managers and officers, according to LinkedIn. The company did not say how many people it plans to hire for the units. (Las Vegas Review-Journal)
Las Vegas, airlines prepare for CES
CES in January is expected to attract more than 180,000 attendees. (Las Vegas Review-Journal)
AGS partners with Vegas Golden Knights
AGS is the nation’s second-largest manufacturer of Class II slot machines used primarily in tribal jurisdictions. It announced a marketing partnership with the Vegas Golden Knights NHL team. (Las Vegas Review-Journal)
Lehman Brothers bet big on Las Vegas
Lehman Brothers collapsed 10 years ago, helping send the country into the Great Recession.
Fremont9 opens downtown
Fremont9 apartment complex has opened in downtown Las Vegas. (Marcus Villagran/Las Vegas Review-Journal) @marcusvillagran
Ross & Snow launches in Las Vegas
Luxury shoe brand Ross & Snow has opened in Las Vegas, featuring "functional luxury" with premium shearling footwear. (Bailey Schulz/Las Vegas Review-Journal)
Remote Identification and Drones
DJI vice president of policy and public affairs discusses using remote identification on drones. (Bailey Schulz/Las Vegas Review-Journal)
Drones and public safety in Nevada
Two representatives in the drone industry discuss UAV's impact on public safety. (Bailey Schulz/Las Vegas Review-Journal)
Frontier Airlines to launch flights from Las Vegas to Mexico
Frontier, a Denver-based ultra-low-cost carrier, will become the first airline in more than a decade to offer international service to Canada and Mexico from Las Vegas when flights to Cancun and Los Cabos begin Dec. 15. (Rick Velotta/Las Vegas Review-Journal)
MGM Resorts International CEO Jim Murren addresses Oct. 1 lawsuits
MGM Resorts International Chairman and CEO Jim Murren addresses criticism his company has received for filing a lawsuit against the survivors of the Oct. 1 shooting. (K.M. Cannon/Las Vegas Review-Journal)
MGM Resorts International opens the doors on MGM Springfield
Massachusetts’ first hotel-casino opens in downtown Springfield. The $960 million MGM Springfield has 252 rooms and 125,000-square-feet of casino. (K.M. Cannon/Las Vegas Review-Journal)
MGM Resorts International prepares to open MGM Springfield
Las Vegas-based MGM Resorts International gave news media and invited guests a preview of the $960 million MGM Springfield casino in Massachusetts. The commonwealth's first resort casino will open Friday, Aug. 24. (K.M. Cannon/Las Vegas Review-Journal)
A Walk Through Circus Circus
It only takes a short walk through Circus Circus to realize it attracts a demographic like no other casino on the Strip: families with young children. (Todd Prince/Las Vegas Review-Journal)
Morphy Auctions, a vintage slot machines seller, wants gaming license
Vice president Don Grimmer talks about Morphy Auctions at the company's warehouse located at 4520 Arville Street in Las Vegas on Thursday, Aug. 16, 2018. (Rick Velotta/Las Vegas Review-Journal)
Nevada's venture capital money doesn't stay in state
Zach Miles, associate vice president for economic development for UNLV, said there’s venture money in Southern Nevada, “but trying to find the right groups to tap into for that money is different.” According to a 2017 report from the Kauffman Foundation, Las Vegas ranked number 34 out of 40 metropolitan areas for growth entrepreneurship, a metric of how much startups grow. With a lack of growing startups in Las Vegas, investment money is being sent outside of state borders. The southwest region of the U.S. received $386 million in funding in the second quarter, with about $25.2 million in Nevada. The San Francisco area alone received about $5.6 billion. (source: CB Insights)
Neon wraps can light up the night for advertising
Vinyl wrap company 5150 Wraps talks about neon wraps, a new technology that the company believes can boost advertising at night. (Marcus Villagran/Las Vegas Review-Journal) @brokejournalist
Nevada on the forefront of drone safety
Dr. Chris Walach, senior director of Nevada Institute for Autonomous Systems, talks to a reporter at NIAS's new Nevada Drone Center for Excellence of Public Safety, located inside the Switch Innevation Center in Las Vegas. K.M. Cannon Las Vegas Review-Journal @KMCannonPhoto
Motel 8 on south Strip will become site of hotel-casino
Israeli hoteliers Asher Gabay and Benny Zerah bought Motel 8 on the south Strip for $7.4 million, records show. They plan to bulldoze the property and build a hotel-casino. Motel 8 was built in the 1960s and used to be one of several roadside inns on what's now the south Strip. But it looks out of place today, dwarfed by the towering Mandalay Bay right across the street.
TOP NEWS
News Headlines
ad-infeed_1
ads_infeed_2
Local Spotlight
Add Event
Home Front Page Footer Listing
Circular
You May Like

You May Like