The Las Vegas Convention and Visitors Authority (LVCVA) June 11 voted unanimously to approve a new split sale of a 10-acre, publicly owned parcel on the north end of the Las Vegas Strip for a total price of $125 million.
Developers 65SLVB have been under contract with the LVCVA since March 2023 to purchase the entire plot for $125 million. Under the new agreement, 65SLVB will instead retain five of the 10 acres and sell the remaining acreage to Fontainebleau Development, the group behind the Fontainebleau Las Vegas (FLV).
The plot is part of the former Riviera Hotel & Casino site, imploded in 2016.
65SLVB will purchase the acreage that is directly adjacent to Las Vegas Blvd., known as the “Front Five Acres,” for $12.5 million. Fontainebleau Development will purchase the “Back Five Acres,” along Elvis Presley Blvd. near the West Hall of the Las Vegas Convention Center, from 65SLVB for $112.5 million.
As part of the new deal Fontainebleau Development will pay a $10 million nonrefundable deposit to the LVCVA. Additionally, both parties will be obligated to close on the entire parcel if the other purchase does not go through.
According to the Las Vegas Review-Journal, LVCVA CFO Ed Finger said he expects the sale to be closed by Nov. 1.
As of now it is unclear what the respective groups have planned for their new plots. 65SLVB, a partnership backed by developers Brett Torino and Paul Kanavos, has not commented on the deal, but the duo has built several retail complexes around Las Vegas.
Fontainebleau Development offered this statement from CEO Jeffrey Soffer June 7: “Almost six months into operations, we are already seeing positive and encouraging results for Fontainebleau Las Vegas. This acquisition, which is strategically located for future growth, underscores our confidence in the Las Vegas market. We look forward to disclosing more details in the near future.”
The site being purchased by Fontainebleau is directly across the street from FLVs, which opened late last year after being beleaguered by setbacks for more than a decade.
Prior to the recent sale, the LVCVA had entered into a $120 million deal with Chilean investor Claudio Fischer, but that deal was terminated in 2022. Fischer lost out on a $7 million deposit but reportedly walked away because of site preparations needed for future development.
The LVCVA has spent approximately $8.2 million in site improvements, according to the Review-Journal.
