Real estate transactions on the Strip pick up as tourism recovers

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In the not-too-distant past, Las Vegas Boulevard was an eerily quiet ghost town.

Casinos were under state control following the coronavirus outbreak, and tourism, Southern Nevada’s main financial engine, had largely come to a halt.

Today? The Strip is once again packed with people, the casinos are raking in mountains of cash – and real estate activity in the corridor is picking up steam.

Over the past year or so, Las Vegas has seen an increase in the number of sale and construction plans involving vacant land, commercial properties and hotels on or near the Strip.

In the latest deal, the company behind Formula 1 said on Friday it was buying 39 acres east of the Strip for $240 million. He did not provide long-term plans for the venue, but described the purchase after F1 announced in late March that it would hold a race on the Strip next year.

America’s gambling capital is no stranger to high-priced real estate deals, and while Las Vegas is full of massive hotels and other over-the-top projects, it also has a long history of developers launching big projects and never giving up. never following.

But real estate transactions seem to be picking up around Las Vegas Boulevard as tourism rebounds from the catastrophic fall in 2020.

Houston billionaire Tilman Fertitta, for example, is in the process of acquiring around 6 acres on the Strip for more than $200 million with plans to build an upscale hotel, people familiar with the business recently said. file in the Review-Journal.

Las Vegas real estate company The Siegel Group bought about 10 acres on and near the North Strip for $75 million last month and is eyeing a project that could include a hotel-casino, condo units and retail Retail.

Additionally, live entertainment company Oak View Group announced plans in late March for an estimated $3 billion resort south of the Strip with an arena, hotel-casino and amphitheater, and Hard Rock International said in December that he was buying the operations of The Mirage for more than $1 billion in cash and aims to build a guitar-shaped hotel tower on the Strip.

Other deals announced last year also moved forward. Among them: Casino owner Vici Properties completed its $17.2 billion takeover of MGM Resorts International real estate spin-off last week, giving the buyer several other hotel properties on the Strip.

Vici now owns 660 acres along the corridor and, according to CEO Ed Pitoniak, has become “the leading real estate owner” on what “we believe is the most economically productive street in the world, the Las Vegas Strip.”

With all that money floating around, some might think back to the go-go days of the mid-2000s, when easy money inflated the real estate market until it burst and the wider economy sank. collapses.

At the time, Las Vegas was ground zero for America’s real estate boom and bust, and the Strip was by no means spared financial carnage, as major projects were halted and value properties dove.

More than a few people say the U.S. economy is currently overheating, although right now there’s no way to tell which direction it will go, let alone how, or if, it will affect real estate. on the Strip.

But with visitors returning to Las Vegas, developers and others in this highly lucrative, ultra-competitive tourism market are doing what often seems normal here: buying and building big real estate.

Contact Eli Segall at [email protected] or 702-383-0342. To follow @eli_segall on Twitter.

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