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Las Vegas Sands has grand plans

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Services for Real Estate Pros

 

The PalazzoFirst the rapidly-growing hotel, gaming and resort company built the Venetian at the corner of Las Vegas Boulevard, better known as the Strip, and Sands Avenue, to compliment the huge convention facility Sands Expo Center. It promptly became a major hit among convention goers and up-scale visitors to town. Since the demand was there, they soon went ahead and built the luxurious Palazzo next door, opening it in January, and connected it directly to the Venetian.

There is more in the pipeline, though. A piece of prime land sits right in front of the Palazzo and the owner of that wanted to put a shopping center on it and repeatedly declined to sell his prized holding, so Las Vegas Sands negotiated an airspace agreement with him that allows the construction of a 400-unit condominium tower above the street-level shops. That's a first for Las Vegas. Airspace deals and other tight building arrangements are common in New York and other large metropolitan areas, but not here. Although the real estate and mortgage markets in Southern Nevada are presently hurting, Las Vegas Sands aims to offer the deluxe condominiums for up to $2,000 a square foot, which is about the same as the MGM Mirage's CityCenter units go for.

The company plans to truly maximize the available land it has in this important corner. Preliminary discussions are under way to develop a third resort on top of the Sands Expo Center, or erect it in its place and move the convention center to another location across the street. They own 18 acres behind the Wynn Las Vegas employee parking garage, which location certainly present its own logistical problems. How to conveniently ferry over and back time-challenged event visitors, that's the question? If the condo market rebounds in the coming years as expected, the advancing master plan draft could also include more of that component.

Anyway, this shoehorn approach is likely going to encourage other resort developers here to squeeze more buildings into smaller lots for maximum benefit. The days of inexpensive Strip land and wide-open spaces among buildings seem to be coming to an end. Vegas is on its way to joining the big leagues in that respect. 

 

 

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Provided by: 

Esko Kiuru
Mortgage, real estate and apartment industry analyst 

www.BluefoxToday.com - syndicated mortgage, housing and property management blog

eskokiuru@gmail.com
My cell: 702-499-1006

Bob & Carolin Benjamin
Benjamin Realty LLC - Gold Canyon, AZ
East Phoenix Arizona Homes
This is interesting and likely a sign of more thanks go to come in the future. Las Vegas just keeps on growing.
Mar 15, 2008 05:04 PM
Esko Kiuru
Bethesda, MD

Bob & Carolin,

Another wave of resort development is under way as we speak.

Mar 16, 2008 06:34 AM
Julie Burks
Riverpoint Realty - Sacramento, CA
Sacramento CA, e-Pro, SFR
I really need to plan a long weekend in Vegas.....sooo many things I have not ever seen.  Other than the airport layovers, I'm sure it's been at least 25 years since I've been there.  It looks exciting!
Mar 17, 2008 12:27 PM
Esko Kiuru
Bethesda, MD

Julie,

The place has grown a tad in the last 25 years, so be prepared. C'mon down.

Mar 18, 2008 04:42 PM
June Stark
Elite Realty-Luxury Homes & Condos On & Off the Strip - Las Vegas, NV
Las Vegas Condos & Luxury Homes Expert
I am not sure the $2000 price psf will fly in today's market. Wonder when the Palazzo Condos will launch.
Mar 19, 2008 12:16 PM
Esko Kiuru
Bethesda, MD

June,

That $2,000 psf could be a stretch. Estimated completion is the end of 2009.

Mar 19, 2008 02:57 PM