The Las Vegas Convention and Visitors Authority (LVCVA) voted unanimously to sell its 10-acre plot on the north end of the Las Vegas Strip for a total consideration of $125 million, two months after Chilean investor Claudio Fischer backed out a $120 million agreement for the same parcel.
This time, the land was sold to a pair of U.S.-based developers—Las Vegas’ Brett Torino and Paul Kanavos of New York, neither of whom were present at the LVCVA hearing on March 14.
The developers’ exact plans for the plot are unclear at this time, but Steve Hill, president and CEO of the LVCVA, indicated after the hearing that retail shopping, entertainment options and non-gaming hotels are among the possibilities, per the Las Vegas Review-Journal.
In a statement to the Review-Journal, Torino said that he and Kanavos “believe this prime location has numerous possibilities and there has been significant interest from other parties that would like to discuss our development plans,” but noted that further details would be announced “at a later date.”
As mentioned earlier, the LVCVA previously agreed to sell the plot to Claudio Fischer earlier this year, but when the investor pulled out on the deal, the LVCVA recouped a $7 million nonrefundable deposit. Thus, the agency gained a total of $12 million more than they would have in the original deal.
Hill argued during the hearing that while it would be nice to have both the land and the money, the money was more important as of right now—the LVCVA is currently working towards a $600 million renovation of the Las Vegas Convention Center, and the proceeds would be of greater benefit.
He also posited that the agency can always “go buy other land that is certainly less expensive,” according to the Review-Journal.
Hill went on to say after the hearing that any development on the site would be good for the Convention Center ecosystem, as the increased foot traffic would raise all tides. The CEO said that that would be true even if another casino was built on the site, despite the glut of nearby competition.
With regards to the new buyers, Hill told the Review-Journal that he is especially confident in Torino’s ability to come through with a quality development, given his track record in the area.
“He’s never not followed through on something like this unless something pops up that’s a real obstacle that can’t be overcome,” Hill said of Torino. “We’re pretty confident with the site and what it looks like and what has been presented to me. This is a meaningful project to Brett because of his ties with the city and the importance of this property to the city. So we think that’s a great marriage.”
Speaking of track record, this is not the first time that Torino and Kanavos have teamed up for a large-scale development in the Las Vegas area—over ten years ago, the duo built the Harmon Corner retail complex on the northern end of Las Vegas Boulevard.
Additionally, Torino and Kanavos also built the high-end complex called 63, which is located next to the Shops at Crystals mall. That development is slated to open in the coming months.
Now that the deal has been agreed to, the duo has five days to put down a $3 million deposit. Once a 90-day due diligence period has been completed, another $2 million will be required.
In all, the sale must close by September 11, and per the terms of the deal, construction must begin within 10 years. The LVCVA also reserves the right to have first consideration should the developers choose to re-sell the parcel.
