83°F
weather icon Partly Cloudy
ROCKY GROUND?
The land near the Raiders stadium may be full of real estate buzz, but it may not be the easiest place to build.
Updated April 17, 2019 - 11:47 am

A mile or so west of the Strip, a cluster of industrial buildings is nothing too memorable, home to auto-repair shops, wholesalers and other businesses.

Now it has a new neighbor: the monster real estate project that is the Raiders stadium.

Las Vegas’ 65,000-seat pro football venue has sparked a surge of interest in the surrounding area. Two properties across the street – including one being eyed for a hotel project – sold for big values after the Raiders bought their land, and brokers and buyers have been calling landlords to see if they’d sell.

But overall, it may not be the best or easiest place to build a big project or open a retail business.

The $1.84 billion stadium, backed by $750 million in public funds, is under construction at Russell Road and Interstate 15 and slated to open next year. There could be more property sales as the NFL team gets closer to game day, some real estate pros said, and Clark County officials have proposed a Stadium District to guide development in the area.


Learn more about nearby land owners

However, neighboring properties are mostly chopped into small parcels, ownership is fractured, and many sites have tenants, making it harder for developers to cobble together big project sites, real estate pros said.

Moreover, countless bars and restaurants are a short drive away on Las Vegas Boulevard, potentially posing steep competition for taverns and eateries that open near the Raiders. And even if it hosts 46 events annually, as is predicted, the domed stadium would be dark for the vast majority of the year, meaning most days it would not generate stampedes of visitors who could spend money at nearby businesses.

Las Vegas broker Paul Reed, owner of Reed Commercial Properties, has a listing near the stadium. He figured the project would have sparked a repeat of the mid-2000s real estate craze, when Las Vegas — then flooded with easy money — had booming construction and widespread flipping.

“I don’t see that this time,” he said.

 

What could get built?

There is no indication that Las Vegas would be harmed if the stadium does not spark other projects. Before the Raiders came around, locals weren’t clamoring to redevelop the area — it was just one of many industrial pockets around the valley.

Plus, given the stadium site’s history of failed ideas, it’s almost a miracle the project is being built at all.

Investors drew up plans for at least seven other projects there since the 1970s, including hotels, a high-speed-train station, a three-stadium sports complex and a 2 million-square-foot fashion expo center. Lenders ultimately foreclosed on the land in 2009 after the economy collapsed.

Cushman & Wakefield broker Dan Hubbard, a retail-property specialist, said it would be “fairly difficult” to build a large project near the stadium because many of the surrounding parcels are only about 2 acres each and have tenants, and it’s “not easy” to pull off a purchase from multiple landlords at once. On top of that, land prices have climbed.

Hubbard and others figure developers will “go vertical” with densely built projects — which can generate more revenue — on small lots, such as a hotel or residential tower with ground-floor retail.

“You can’t just go build a Starbucks,” Las Vegas developer Joe Kennedy said.

Some brokers also said garages could get built amid an anticipated shortage of parking at the stadium.

“You’ll probably get some smart guys to build a garage or two and charge a premium for parking to be right across the street,” said CBRE Group broker Michael Parks, a hotel-casino specialist.

One issue facing prospective developers and business owners is the number of events at the stadium.

According to a projection by Las Vegas Stadium Authority staff, the facility will host nearly four dozen events a year, including NFL games, soccer matches and motorsports.

Kennedy, founder of J.A. Kennedy Real Estate Co., bought a 2-acre industrial site near the stadium last year and said his plans for the parcel are “a long way from coming together.” But he indicated that projects in the area would have to lure customers all year and not just rely on football games, concerts or other big events at the stadium to generate foot traffic.

“What business do you know (can) survive on 60 nights a year?” he said.

‘Antiquated industrial stuff’

The Raiders bought their project site in May 2017 and are scheduled to move to Las Vegas from Oakland, California, next year. But a few neighbors have already cashed in.

Investment firm Global Trust Group in August 2017 bought a vacant 2.5-acre parcel along Hacienda Avenue, just north of the stadium site, for $7.25 million, or $2.9 million an acre. Then in November, developer Osprey Real Estate Capital and Huntington Hotel Group acquired a 2-acre industrial site on Polaris Avenue, just west of the stadium, for $6.5 million, or $3.15 million per acre.

Those are the only parcels directly across from the stadium that have sold since the Raiders closed escrow, property records indicate.

Osprey founder Sean Dalesandro said his group is looking to build retail space and a 20-story hotel, and that he wants more acreage.

“Anyone who’s selling land over there, we’re interesting in buying it,” he said.

As he sees it, it’s only a matter of time before more investors buy property.

“Before, it was just antiquated industrial stuff,” Dalesandro said of the area, “and now there’s a stadium across the street.”

Meanwhile, Clark County held a kick-off meeting about a proposed Stadium District Master Plan in late September. A slideshow on the county’s website says the Stadium District would span 787 acres, with numerous properties near the football stadium eyed for commercial/tourist uses.

County Commissioner Michael Naft, whose district includes the stadium, said he can’t speak to whether county officials are considering expediting zoning applications for projects in the Stadium District.

Asked what the ultimate goal is, he said the Raiders stadium is a “tremendous asset” that should be used “to the max,” but added the county is still “pretty early on” in formulating the master plan.

Aerial view of the Las Vegas Raiders stadium under construction as seen on Friday, March 15, 2019. (Michael Quine/Las Vegas Review-Journal) @Vegas88s

Suits descend

Still, more deals could be on the way.

Realty Investment Group owner Al Barbagallo, who brokered the sale to Osprey and Huntington, said parking developers have contacted him to view parcels that are walking distance from the stadium, and he has heard that condo and apartment builders are looking around as well.

Jennifer Lewis, a vice president with Lewis Management Corp., operator of an industrial park just north of the stadium, said people in suits have been spotted walking around the area, apparently scoping out sites.

“We’ve seen that a few times,” she said. “It’s not a neighborhood where people wear suits and walk around much. We know people are out looking.”

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

LIVECAM: Monitor the progress of Las Vegas Stadium in this view looking south toward the construction site.

Don't miss the big stories. Like us on Facebook.
Business Videos
How much do Las Vegas casino CEOs make?
Las Vegas gaming CEOs made anywhere between $1 million and $24 million last year, according to company filings with the U.S. Securities and Exchange Commission. ((Las Vegas Review-Journal)
30-year-old Rio needs a little TLC
Nearly 30 years after the Rio opened, the red and blue jewel that helped catapult Las Vegas to a new level with its buffet and nightclub has lost its status along with its shine.
The latest on the Drew Las Vegas - VIDEO
Eli Segall recounts his tour of the Drew Las Vegas, formerly the Fontainebleau, on the Las Vegas Strip. (Michael Quine/Las Vegas Review-Journal)
Pinball Hall of Fame to move near south Strip
Operators of the Pinball Hall of Fame have been approved to build a new, larger arcade near the south edge of the Strip on Las Vegas Boulevard near Russel Road. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
National Hardware Show underway Las Vegas
The National Hardware Show kicked off Tuesday at the Las Vegas Convention Center (Mat Luschek / Review-Journal)
Caesars for sale?
Caesars Entertainment Corp. has been swept up in takeover speculation since the company’s share price tumbled last year amid disappointing earnings and concerns over a recession. Amid the decline, hedge funds scooped up shares. Billionaire activist investor Carl Icahn began buying shares of Caesars as early as January. Icahn acquired nearly 18 percent by mid-March. In February Icahn called on the Caesars board to study a sale as a way to boost shareholder value.
Las Vegas home prices
Las Vegas home prices grew fastest among major markets in February for the ninth straight month. But amid affordability concerns, the growth rate has slowed down. Southern Nevada prices in February were up 9.7% from a year earlier, according to the latest S&P CoreLogic Case-Shiller index. The last time Las Vegas' price growth fell below 10% was in September 2017, S&P Dow Jones Indices reported.
Free Parking Coming To Wynn
Free parking will come to the Wynn and Encore resorts on May 1, 2019. (Mat Luschek / Review-Journal)
Founding Venetian employees talk about 20 years at the Strip resort
The Venetian, which opened May 3, 1999, is celebrating 20 years on the Las Vegas Strip. Seven original employees talk about opening the luxury resort and working there for two decades. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Circa aiming for December 2020 opening
The 1.25-million-square-foot property will have 44-stories and 777-rooms. It will also have a separate nine-story, 1,201-space parking garage.
Boxabl official explains the building concept
Boxabl business development manager Galiano Tiramani shows off a room built by his company. (Blake Apgar/Las Vegas Review-Journal)
TI/Mirage Tram reopens
The tram that shuttles guests between TI and Mirage reopened this week after being closed for much of 2018.
Las Vegas Convention Center expansion taking shape
Renderings and actual footage show how the Las Vegas Convention Center is evolving.
Former Starbucks CEO Howard Schultz at Las Vegas convention
Former Starbucks CEO and potential presidential candidate Howard Schultz spoke at the Epicor Insights user conference at Mandalay Bay Convention Center Wednesday, April 17, 2019. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Drew Las Vegas to open in the second quarter of 2022
The 67-story Drew Las Vegas is slated to open in the second quarter of 2022 at the north end of the Las Vegas Strip. (Michael Quine/Las Vegas Review-Journal)
NAB Day 1 (Time Lapse)
NAB kicked off at the Las Vegas Convention Center on Monday, April 8, 2019. (Mat Luschek / Review-Journal)
National Association of Broadcasters Show shows 1mm thick 8K TV with 22.2 channel digital sound
Japan’s NHK Science & Technology Research Laboratories booth featured a 1mm thick 8K TV system used in conjunction with a 22.2 channel digital sound system at the National Association of Broadcasters Show at the Las Vegas Convention Center. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Nevada shoppers react to Smith’s no longer accepting Visa credit cards
On March 1, Smith’s announced that it would no longer be accepting Visa credit cards at any of its 142 supermarkets, including the 45 in Nevada.
Massachusetts Gaming Commission asks how long Wynn executives knew about misconduct
Business reporter Rick Velotta gives an update on the adjudicatory hearing on the suitability of Wynn Resorts to retain its gaming license in Massachusetts.
Henderson app developer part of Startup in Residence
Henderson based developers of the app On Point Barricade are taking part in Startup in Residence, a North America program dedicated to pairing tech companies with governments. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Sam's Town employees and customers talk of their love for the iconic casino
Longtime Sam's Town employees and customers love each other and love their casino. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Las Vegas apartments rents
Las Vegas’ apartment market has accelerated in recent years. Developers are packing the suburbs with projects, landlords are on a buying spree, and tenants have filled buildings.
William Boyd talks about the birth of Sam's Town
On the eve of the 40th anniversary of Sam's Town, William Boyd, executive chairman of Boyd Gaming and son of hotel namesake Sam Boyd, talks about how the casino became one of the first local properties in Las Vegas. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
High Roller observation wheel turns five
The world’s tallest observation wheel celebrates it’s fifth year on Sunday, March 31, 2019. (Michael Quine/Las Vegas Review-Journal) @Vegas88s
Escape Room Industry Growing In Las Vegas
Escapology employees discuss the growing escape room industry in the U.S. and Las Vegas. (Bailey Schulz/Las Vegas Review-Journal)
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)
THE LATEST
 
Land owners near Las Vegas stadium enjoying Raiders value boost

The $1.84 billion stadium project about a mile west of Las Vegas Boulevard, was dumb luck for nearby landlords. A few bought property right across from the stadium site as recently as 2015 — two years before the football team purchased its land — and others have owned parcels much longer.