The Las Vegas Convention and Visitors Authority (LVCVA) is putting 10 acres of the former Riviera site—now demolished— up for sale through the brokerage firm CBRE.
There is no asking price for the property, which is on the northern part of the Strip, along Las Vegas Boulevard, but some experts are predicting land prices of $50 million an acre on the Strip.
It’s not a coincidence that LVCVA chose CBRE as its broker. Recently John Knott, head of the CBRE Global Gaming Group projected $50 million an acre prices for Strip land, based on his predictions of a land boom in 2020-21 that will be sparked by the opening of new projects.
Knott and others see Las Vegas as being poised on the brink of a “Roaring 20’s” land boom amidst predictions that Las Vegas could be the site of the Olympic Games. This predicted boom is being heralded by the anticipated openings of Resorts World Las Vegas and The Drew (formerly the Fontainebleau project) – and the doubling in size of the Las Vegas Convention Center, which is also expected to begin soon.
Land sales have been like molasses for several years and sellers have been disappointed that they never regained the heights of before the Great Recession.
Steven Hill, the president and CEO of LVCVA told the Las Vegas Review-Journal “It may be the most valuable piece of property that a government agency has ever sold.” The agency bought the 26-acre Riviera property in 2015 for $182.5. Part of it will be used for the expansion of the convention center, which is now under construction.
That expansion will add more than 1.4 million square feet of meeting/convention space.
The land for sale is across the street from the $4 billion Resorts World project, which is also being built. It is rare for being so large according to Knott. He told the Review-Journal, “Typically, parcels that have become available on the Strip have been significantly larger or smaller in size.”
In 2017 34.56 acres across from the Wynn sold for $300 million, the most expensive sale of raw land that year in the U.S.
Hill added, “As visitation to Las Vegas remains strong and is expected to increase due to a continued trend of new and enhanced offerings, particularly on the North Strip, this is an ideal time for the right buyer to execute on a big plan,” said Steve Hill, CEO, LVCVA. “The potential of this land is remarkable. Given its location near the Convention Center District and near some of the Strip’s most exciting new properties, these 10 acres provide exceptional opportunity for the right visionary.”
Knott predicts that land in the Strip will become scarce and consequently expensive. Last week he told the Economic Club of Las Vegas that more transportation infrastructure will be built. Heralding this could be the underground transportation link that Elon Musk’s the Boring Company has been hired to build to serve the expanded convention center.
Knott envisions the city’s population growth expanding to the south and east and be re-gentrified with increased density near the Strip. At some point there will be a move to build an adjunct airport to McCarran south of the city.
Stefan Szymanski, the University of Michigan’s Stephen J. Galetti, professor of sports management, who also spoke to the Economic Club, proposes to stage the Olympics in the city.
The number of cities capable of hosting such an event is an elite one, but Las Vegas is part of that elite. As can be shown by the city building the $1.8 billion, 65,000-seat stadium for the Raiders. That gives the city almost two dozen venues that could host Olympic events, he said.
He admits that its certainly possible that the International Olympic Committee wouldn’t consider a bid from Las Vegas because of the domination of gaming. So he proposes that the city host its own multisport event without the IOC’s imprimatur.
Meanwhile, the Strip is about to become the site of a multi-year construction project that will create traffic hell for motorists. The Clark County Department of Public Works and Las Vegas Valley Water District are set to begin reconstructing and repaving 5.7 miles of the Boulevard beginning in June with a July 2022 completion date.
Besides repaving, water mains will be replaced and a fourth lane will be added. Pedestrian enhancements, and other upgrades to the traffic system will also be added.
Most of the roadwork will take place between 2 a.m.–10 a.m. Mondays-Thursdays. The total cost of the project hasn’t yet been determined.
Virginia Valentine, president of the Nevada Resort Association, who is also on the Nevada Department of Transportation board, told Best of Las Vegas, “Anytime there’s a project on Las Vegas Boulevard we’re very sensitive to how that’s going to impact what we’re doing.”
She added, “I think they’ve met with everyone up and down the corridor and I think they’ve tried to address their concerns about their construction projects, special events, their timeline and hours of construction.”
