File 018743

Images

Text

An Iconic Offering
A 38.5 Acre
Development Site
on the Las Vegas Strip
Exclusive Agents
2
Marc D. Renard 213-955-6413
Vice Chairman
marc.renard@cushwake.com
Manfred W. Schaub 213-955-5128
Senior Director
manfred.schaub@cushwake.com
John C. Cushman III 213-629-6575
Chairman
john.cushman@cushwake.com
John Stinson (65) 6232 0878
Executive Managing Director
(65) 6232 0878
john.stinson@ap.cushwake.com
Lic. #616335
Cushman & Wakefield of California, Inc.
601 South Figueroa Street, Suite 4700
Los Angeles, California 90017
Lic: #955076
Geoffrey West 702-688-6936
Senior Director
gwest@comre.com
Commerce Real Estate Solutions
3773 Howard Hughes Parkway, Suite
100S
Las Vegas, NV 89169
Confidentiality & Conditions
This is a confidential Offering Memorandum intended
solely for your limited use and benefit in determining
whether you desire to express any further interest in
the purchase of the 38.5-acre site (“the Property”).
This Offering Memorandum was prepared by
Cushman & Wakefield and Commerce Real Estate
Solutions (“Cushman & Wakefield”) and has been
reviewed by representatives of the owners of The
Property (“the Ownership”). It contains selected
information pertaining to the Property and does not
purport to be all-inclusive or to contain all of the
information that prospective purchasers may desire.
It should be noted that all information provided is
for general reference purposes only in that such
information is based on assumptions relating to the
general economy, competition, and other factors
beyond the control of Ownership and, therefore, is
subject to material variation. Additional information
and an opportunity to inspect the Property will be
made available to interested and qualified prospective
purchasers. Neither Ownership nor Cushman &
Wakefield nor any of their respective officers have
made any representation or warranty, express or
implied, as to the accuracy or completeness of this
Offering Memorandum, any of its contents, or any
other materials provided as a courtesy to facilitate
prospective purchaser’s own investigations of the
Property, and no legal commitments or obligations
shall arise by reason of this Offering Memorandum,
its contents or any further information provided by
Cushman & Wakefield regarding the Property.
It is essential that all parties to real estate transactions
be aware of the health, liability and economic impact
of environmental factors on real estate. Cushman &
Wakefield does not conduct investigations or analyses
of environmental matters and, accordingly, urges its
clients to retain qualified environmental professionals
to determine whether hazardous or toxic wastes
or substances (such as asbestos, PCB’s and other
contaminants or petro-chemical products stored in
underground tanks) or other undesirable materials
or conditions are present at the Property and, if so,
whether any health danger or other liability exists. Such
substances may have been used in the construction or
operation of buildings or may be present as a result of
previous activities at the Property.
Various laws and regulations have been enacted at
the federal, state and local levels dealing with the use,
storage, handling, removal, transport and disposal of
toxic or hazardous wastes and substances. Depending
upon past, current and proposed uses of the Property,
it may be prudent to retain an environmental expert to
conduct a site investigation and/or building inspection.
If such substances exist or are contemplated to be
used at the Property, special governmental approvals
or permits may be required. In addition, the cost
of removal and disposal of such materials may be
substantial. Consequently, legal counsel and technical
experts should be consulted where these substances
are or may be present.
Ownership and Cushman & Wakefield expressly
reserve the right, at their sole discretion, to reject any
or all expressions of interest or offers to purchase
the Property and/or terminate discussions with any
entity at any time with or without notice. Ownership
shall have no legal commitment or obligation to
any entity reviewing this Offering Memorandum or
making an offer to purchase the Property unless and
until a written commitment to purchase the Property
has been fully executed, delivered and approved
by Ownership and any conditions to Ownership’s
obligations thereunder have been satisfied or waived.
Except for representations and warranties expressly
set forth in such definitive, executed purchase and
sale agreement, Ownership makes and will make no
representations and warranties regarding the Property
and any prospective purchaser must rely entirely on
its own investigations and those of its agents and
consultants.
By receipt of this Offering Memorandum, you agree
that this Offering Memorandum and its contents are of
a confidential nature, that you will hold and treat it in
the strictest confidence, and that you will not disclose
this Offering Memorandum or any of its contents to
any other entity without the prior written authorization
of Ownership nor will you use this Offering
Memorandum or any of its contents in any fashion or
manner detrimental to the interest of Ownership or
Cushman & Wakefield.
The terms and conditions stated in this section will relate
to all of the sections of the Offering Memorandum as
if stated independently therein. If, after reviewing this
Offering Memorandum, you have no further interest
in purchasing the Property at this time, kindly return
this Offering Memorandum to Cushman & Wakefield
at your earliest possible convenience. Photocopying or
other duplication is not authorized.
Table of Contents
Executive Summary
The Offering.......................................................................................... 5
3
2nd Largest Hotel
4,752 Rooms
3rd Largest Hotel
4,408 Rooms
4th Largest Hotel
4,008 Rooms
The Largest Hotel
6,852 Rooms
MGM GRAND
THE LOT
750’ of Direct Frontage
505’ FAA Approval
Located adjacent to
4 of the 5 largest hotels
in North America
4
Executive
Summary
The Offering
Cushman & Wakefield, Inc., as exclusive advisor, is pleased to offer for sale a remarkable 38.5-
acre development site on the world famous Las Vegas Strip. Situated directly across from the
Mandalay Bay Resort, an investor could obtain permits within approximately nine months to
develop a visionary themed large-scale resort and gaming destination with up to 10,000 hotel
rooms. An approved height allowance of up to 505 feet will make any future development on
the Site the most highly visible on the Strip to the more than 42 million annual visitors travelling
through McCarron International Airport. In addition private aircraft “high roller” terminals
adjacent to the Site create a very unique opportunity to provide exclusive direct jet access points.
Las Vegas gaming revenues, levels of new development, visitor volumes and visitor spending
are all approaching record levels making the timing associated with the development of the Site
extremely compelling.
Las Vegas possesses a unique international appeal that draws an incredible 3.5 million visitors
each and every month. The growth in tourism is only expected to accelerate with McCarran
International Airport anticipated to be the fifth fastest growing airport in the country over the next
10 years with passenger volume projected to reach 55 million. Las Vegas’ growth is expected to
be bolstered by a mix of additional seats by domestic and international carriers through more
flights and larger aircraft and new service from international carriers including nonstop flights
from China within three years. Over 4 million square feet of new convention space and more than
$6 billion of new resort, retail and entertainment developments continue to elevate the overall
“Las Vegas experience”.
5
AEG/MGM
Sports Are
The Site
■■
Remarkable 38.5-acre site will support a themed, large-scale casino resort development
■■
Six to nine month approval process to break ground
■■
750 feet of direct Strip frontage
■■
In-place income generated by existing buildings
■■
505’ of FAA approved height allowance fronting the Strip
The Largest Hotel
6,852 Rooms
■■
H-1 zoning flexibility allows for resort casino/gaming, luxury retail, multifamily, retail, timeshare
■■
Direct visibility to 42 million visitors traveling through McCarran International Airport
■■
Views to south will be unobstructed forever due to lower buildable height restrictions on the south
■■
Existing streets bounding all sides of the Site provide excellent access
CONCEPTUAL PLANS FOR CASINO RESORT OF 9,360 ROOMS
6
Private Aircraft
“High Roller”
Terminals at LAS
Tropicana Ave
Reno Ave
MGM Grand
The Lot
Triple 5
Development
Project
Las Vegas Blvd
na
4th Largest Hotel
4,008 Rooms
3rd Largest Hotel
4,408 Rooms
2nd Largest Hotel
4,752 Rooms
Convention Space
2.1 Million SF
7
Strong Las Vegas Economy Justifies New Development
■ ■ $6 billion of under construction and planned Strip development is the greatest since 1950’s
■ ■ $45.1 billion in annual visitor revenue during 2014, a new record
■■
41.1 million visitors in 2014; 2015 is on track to hit 42 million, a new record
■■
4 million square feet of new convention space under development, a new record
■ ■ $9.6 billion in gaming revenues in 2014 near peak 2007 levels
■■
Visitor volume projected to increase by 500,000 every year for the foreseeable future
■■
Average hotel occupancy is 92% on the Strip
■■
Tier One hotel ADR was $232 in 2014
■■
Nearly 650,000 new residents since 2000, representing 47% growth during the past decade
■■
1.3 million more room nights were sold in 2014 over 2013
($ Billions)
50
45
40
35
30
25
24.6
LAS VEGAS VISITOR ECONOMIC IMPACT 2000 - 2014
Las Vegas Visitor Economic Impact
$28.7
33.7
31.5 31.9 31.6 32.8
$36.7
$39.4
41.6 $41.6
$36.8
$35.2
$40.2
$44.9 $45.0 $45.1
Attendance (millions)
7
6.5
6
5.5
5
4.5
4
3.9
LAS VEGAS CONVENTION STATISTICS
Attendance Conventions
6.3
6.2
6.2
5.9
5.7 5.7
5.0 5.1
5.0
4.9
4.5 4.5
5.1
5.2
30,000
25,000
20,000
15,000
10,000
# of Conventions
20
3.5
5,000
15
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
$45.1 Billion
Visitor Revenues hit New Record
3
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
4,000,000 Square Feet
Convention Space under Construction to Accommodate Demand
8
Surrounded By World Class Retail
RETAILERS TO THE SOUTH
RETAILERS TO THE NORTH
10
18 OF THE 30 LARGEST RESORTS
IN THE WORLD ARE ON THE STRIP
11
THE TRANSFORMATION
OF THE SOUTH SIDE OF THE STRIP
$100 Million Shops at Tropicana
Planned
$375 Million AEG-MGM 20,000
Seat Arena Under Construction
Luxury 300,000 Retail Frontage at
Excalibur Planned
Monte Carlo Frontage and Theatre
Under Construction
12
Mandalay Bay Convention
Expands to 2.1 Million SF
MGM Opened The Lot and City of Rock May 2015
drawing 300,000 people in four days
$6 Billion In New Development
■■
Group’s multi-billion dollar Asian-themed
resort on the Strip (expected to open in 2018)
and Alon Crown 1,100 room Alon breaking
ground in 2016.
■■
MGM & AEG’s 20,000-seat arena under
construction between New York-New York
and Monte Carlo will draw hundreds of
thousands of new visitors per year.
$4.5 Billion 3,000 Room Resorts World
Under Construction
■■
Major renovations are underway or complete
at The Venetian, Mandalay Bay, MGM Grand,
The Mirage, Bellagio, the New Tropicana Las
Vegas, SLS Hotel and Four Seasons Hotel.
$2 billion Alon Crown
Resorts Planned
Silverton Timeshares
Under Construction
13
Wyndam Blue Timeshares
Opened July 2015
$2.5 billion Convention Center
Expansion Planned
14
Offering Procedures
Cushman & Wakefield, Inc. (“C&W”) is contacting prospective
purchasers in order to solicit their interest in the acquisition
of The Site on Las Vegas Strip. The Property is being offered
on a strict “as-is” basis with the selection of the buyer being
influenced by the level of physical and economic due diligence
initially undertaken by prospective purchasers. In this regard,
detailed financial information, title reports, service contracts
and other relevant documentation are available for review.
Property Tours
Prospective purchasers are asked to contact C&W to arrange
specific times for property tours.
Offer Submission
Prospective purchasers are kindly requested to submit offers
to Cushman & Wakefield at their earliest convenience but no
later than XX, XX, XXXX at the address specified below:
Marc D. Renard
Vice Chairman
213-955-6413
marc.renard@cushwake.com
Private Aircraft
“High Roller”
Terminals at LAS
Cushman & Wakefield of California, Inc.
601 South Figueroa Street, Suite 4700
Los Angeles, California 90017
Facsimile: (213) 627-5995
15
750’ OF DIRECT FRONTAGE
16
The Site
The Site is comprised of 12 parcels totaling approximately 38.475 net acres located at the southeast corner of Las Vegas Boulevard
South and East Mandalay Bay Road on the world famous Las Vegas Strip.
Current improvements on the Site include the Desert Oasis Motel, The Oasis Apartments, a two-story office building at 3951 Las
Vegas Boulevard South and a one-story commercial building at 3953 Las Vegas Boulevard South. The former Skyvue development
planned for the northwest portion of the Property received FAA height approvals and was planned for the world’s tallest ferris
wheel approximately 467-feet tall and a two-story retail / convention complex. Two concrete support columns for the wheel,
approximately 240-feet tall, and four concrete foundations were built before construction was halted in August 2012.
The adjacent properties to the east fronting Haven Street are the signature private jet terminals of McCarran International Airport
and the private jet terminal of the Las Vegas Sands Corp; to the west of the Site are Mandalay Bay Resort Casino and Convention
Center, the Four Seasons Resort and Luxor Resort Casino; to the north of the Site are MGM’s music festival property “The Lot”
and the Tropicana Resort Casino; and to the south is undeveloped land primarily owned by the multinational conglomerate Triple
5 Group that is restricted by lower height limitations of approximately 284 feet.
Site highlights include:
■■
Income in-place of approximately $500,000 from existing tenants provides revenue while planning concept and designs
are approved
■■
Unique opportunity to create branding synergies with private ingress/egress points to the adjacent high roller jet terminals
■■
Preferred south Strip location adjacent to four of the largest resorts in North America (MGM Grand, Mandalay Bay,
Excalibur and Luxor).
■■
Established and high traffic location on the Las Vegas Strip
■■
Numerous world-class resorts, convention centers, luxury shopping, dining and entertainment attractions within walking
distance.
■ ■ Proximate to the I-15 and I-215 Freeways
Parcels, Land Area and Summary of Existing Improvements
17
NO.
ASSESSOR
PARCEL
ADDRESS PROPERTY USE 2014 NOI
YEAR
BUILT
ACREAGE
1 162-28-202-013 95 East Ali Baba Lane Former Casey Arms Apartments site/Undeveloped - - 8.965
2 162-28-301-001 47 East Mandalay Bay Road Former Happi Inn site/ Skyvue construction - - 0.769
3 162-28-301-002 47 East Mandalay Bay Road Former Happi Inn site/ Skyvue construction - - 0.45
4 162-28-301-010 3953 Las Vegas Boulevard South (1-story commercial): Psychic Sessions $18,000 1960 0.233
5 162-28-301-029 N/A Graded/Undeveloped - - 5.822
6 162-28-301-032 3951 Las Vegas Boulevard South (2-story): offices - Skyvue construction - 1998 3.348
7 162-28-301-033 N/A Graded/Concrete channel - - 3.767
8 162-28-301-034 3965 Las Vegas Boulevard South (2-story): Desert Oasis Motel & Apts- 48 rooms ($13,624) 1963 3.026
9 162-28-301-036 3941 Las Vegas Boulevard South Former Olympus Inn site/ Skyvue construction - - 1.76
10 162-28-301-037 N/A Skyvue construction - - 1.82
11 162-28-302-001 N/A Graded/Undeveloped - - 2.229
12 162-28-310-001 5316 Danville Lane, 5333 Bethel Lane The Oasis Apartments - 128 units $268,675 1984 6.286
TOTAL $273,051 38.475
UTILITIES
The Site has full utility services provided by the following:
■■
Electricity: NV Energy
■■
Natural Gas: Southwest Gas Company
■■
Water: Las Vegas Valley Water District
EXISTING INCOME
The existing improvements on the Site, inclusive of the Desert Oasis
Motel, Oasis Apartments and the strip retail building at 3953 Las
Vegas Boulevard generate approximately $275,000 in annual net
income.
■■
Sewer: Clark County Water Reclamation District
■■
Waste: Republic Services
18
Catholic
Church
ALI BABA LN
Quali Air
Center
“The Lot”
GILES STREET
(Former Casey
Arms Apartment)
Graded/
Undeveloped
Vacant
Kinder-Morgan Facility
HACIENDA AVE
Skyvue
Construction
Site
Concrete
Columns
Motel 8
Desert Oasis
Motel/Apartment
Work
Gate
Two-Stiory
Office Building
Chain
Link Fence
Building A
Cconcrete Channel
Crushed
Asphalt Gravel
DANVILLE LN.
The Oasis
Apartments
BETHEL LN
Block Walls
HAVEN STREET
Improvements MANDALAY BAY ROAD and Access
Existing streets bound all sides of the
Site provide excellent access. Las Vegas
Boulevard South is a fully improved six
lane arterial with two main traffic lanes
in each direction where it fronts the
Site. East Mandalay Bay Road is a fully
improved two lane collector McCarranstreets with
one traffic lane in each Airport direction. Haven
Property
Street is a fully improved two lane street
with one traffic lane in each direction.
Four Seasons
Hotel
Laughing
Jackalope
(Closed)
Commercial
Building B
Mobile
Mini
Container
MESA VISTA AVE
Crushed Asphalt Gravel
Fence
DIABLO AVENUE
Smart Mart /
Shell Gas Station Undeveloped
Undeveloped
Private Aircraft
“High Roller” Terminals at LAS
19

Zoning
The Site is zoned H-1. This zoning
provides for full service casino resorts and
is the Strips primary gaming enterprise
designation. Permitted uses include casino
hotels, resort hotels, inns and motels,
apartment rentals and condominiums,
timeshares, public and institutional
buildings, bars, restaurants, retail shops,
and similar uses.
The Site is located within a Mixed-Use
Overlay District. The Clark County Board of
Commissioners approved an ordinance to
the Clark County Code, Title 30 as Chapter
30.48 that established four different
designations for Mixed-Use. The Board
also established a number of Mixed Use
Overlay Districts, with the majority being
along or in close proximity to The Las Vegas
Strip. The Site is within the designation of
MUD-1, the most intense density zoning
primarily located along the Las Vegas Strip
resort corridor. The establishment of the
Mixed Overlay District and the granting of
the land use of MUD-1 make it easier for
properties to receive approvals for mixeduse,
high rise projects.
20
FAA Approved Height Allowance Up To 505 Feet On The Site
The Federal Aviation Administration (FAA) has provided determination letters for the Site approving a height allowance of 505 feet fronting
Las Vegas Boulevard and decreasing to 354 feet on the eastern portion of the Site. It should be noted that in March 2011 the Clark County
has a Board of County Commissioners unanimously approved the development of the 500 foot observation wheel and retail/convention
space on 10.0 net acres of the Site.
505’ 354’ 284’ 91’
600 ft
500 ft
400 ft
300 ft
200 ft
100 ft
THE STRIP
PROPERTY
21
Renderings and Plans
Current ownership has drafted conceptual plans that include the development of 9,360 hotel rooms with approximately 350,000 square feet
of retail, conference and casino gaming space.
22
6 to 9 Month Permitting Process to Break Ground
The following is an outline of the estimated 6 to 9 month permitting process an investor will follow to enter into a development agreement
within Clark County. Prior to starting the development agreement process with the County, the developer would acquire permit approvals
from the Paradise Town Advisory Board.
Traffic study
submitted
RISE reports
distributed
upon receipt
Pre-submittal
conference
Redistribute
RISE reports
response
from agencies
RISE
acceptance
letter
Development
agreement
hearing
Day 1 Day 15 Day 30 Day 45 Day 60* Day 105* Day 150
Pre-submittal filing:
initial regional
infrastructure
services evaluation
(“RISE”) reports
submitted.
evidence of traffic
study submittal.
Agencies
encouraged
to submit
draft
comments
Agencies
encouraged
to submit
draft
comments
Revised
RISE reports
submitted
by applicant
Special use
permit filed
Commence
and continue
to negotiate
Development
agreement**
*Acceptance letter may be issued within 30 days of presubmittal conference depending upon applicant’s response.
**Development Agreement may be submitted in conjunction with Special Use Permit if negotiations are complete.
Fixed timeline may be flexible dependent upon applicant’s response time.
23
Available Third Party Reports and Documentation
The following summarizes available third party reports that are posted within the online
due diligence site:
■■
ALTA Survey Wallace Morris Surveying, dated May 2013
■■
Title Report by First American, dated July 2015
■■
Tax bills 2014 – 2015
■■
Phase I by Western Technologies Inc., dated April 2014
■■
Phase II by Western Technologies Inc., dated August 2003
■■
Limited Phase II by Western Technologies Inc., dated August 2004
■■
Geotechnical Evaluation by Western Technologies Inc., dated October 2003
■■
Geotechnical Evaluation by Western Technologies Inc., dated August 2004
■■
Geotechnical Evaluation by Western Technologies Inc., dated July 2011
■■
Geotechnical Recommendation Letters of by Western Technologies Inc., dated February
2012, April 2014
■■
Zoning Declaration Letter by Clark County Planning Department, dated October 2008
■ ■ Federal Aviation Administration (FAA) Height Determination Letters, dated May 2011,
June 2012, February 2015
24
Area
Overview
The Las Vegas Experience
Developed as an entertainment destination, Las
Vegas is driven by a consumer services economy
where “the experience” is its primary commodity.
Las Vegas is one of the most visited tourist
destinations in the United States and it possesses a
unique international appeal that draws a remarkable
3.4 million visitors each month. Identified as the
global capital of entertainment and gaming, it is
the iconic three-mile stretch of Las Vegas Boulevard
known as “the Strip” that draws visitors to Las
Vegas. With 115,000 hotel rooms located on the
Strip, the concentration of tourists is more than
any other metropolitan statistical area in the world.
The Las Vegas Convention and Visitors Association
reported 41.1 million visitors in 2014 and project the
total number of visitors to reach a new market high
of 42 million in 2015.
25
Unparalleled Hotel and Resort Inventory
Las Vegas has a larger supply of hotel rooms than any other metropolitan statistical area in the world and in return drives extraordinary
spending demographics. The vast majority of Las Vegas’ lodging supply is located on the Strip, and approximately 76% of all visitors (31
million) to Las Vegas stay in hotels on the Strip each year. Luxurious mega-resorts as well as more moderately priced accommodations are
concentrated on the Strip and in the immediate surrounding area to meet the needs of all segments of the visitor market. A comparable
resort district cannot be found anywhere else.
As summarized in the exhibit below, 17 of the 30 largest resorts in the world are located on the Las Vegas Strip:
THE WORLD’S 30 LARGEST HOTELS AND RESORTS
RANK RESORT LOCATION ROOMS RANK RESORT LOCATION ROOMS
1 MGM Grand Las Vegas 6,852 16 Flamingo Las Vegas 3,565
2 First World Hotel Genting Highlands 6,118 17 Atlantis Paradise Island 3,414
3 Disney’s All-Star Hotel Orlando 5,524 18 Hilton Hawaiian Village Honolulu 3,386
4 Izmailovo Moscow 5,000 19 Disney’s Port Orleans French Quarter Lake Buena Vista 3,056
5 Mandalay Bay Las Vegas 4,752 20 Mirage Las Vegas 3,044
6 Luxor Las Vegas 4,408 21 Monte Carlo Las Vegas 3,002
7 Ambassador City Jotiem Pattaya 4,219 22 Venetian Macau Macau 3,000
8 The Venetian Las Vegas 4,049 23 Cosmopolitan Las Vegas 2,998
9 Excalibur Las Vegas 4,008 24 Westgate Las Vegas Resort and Casino Las Vegas 2,956
10 Aria Resort & Casino Las Vegas 4,004 25 Paris Las Vegas 2,916
11 Caesars Palace Las Vegas 3,960 26 Treasure Island Las Vegas 2,884
12 Bellagio Las Vegas 3,950 27 Gaylord Opryland Resort Nashville 2,881
13 Sheraton Macau 3,896 28 Disney’s Pop Resort Lake Buena Vista 2,880
14 Circus Circus Las Vegas 3,774 29 Bally’s Las Vegas 2,814
15 Shinagawa Prince Hotel Tokyo 3,680 30 Borgata Atlantic City 2,802
Located in Las Vegas
26
Convention Centers and Trade Shows
Las Vegas is the world’s most preferred convention and trade show city, offering more convention and meeting space than any other city in
the world, with more than 11 million square feet of existing inventory, including more than 2.0 million square feet that have been completed
during the past three years and an additional 4 million square feet of convention space is currently in development. The total annual nongaming
economic impact of conventions hosted by all Las Vegas facilities totals approximately $8.0 billion. Notable conventions scheduled
in Las Vegas during 2015 and 2016 include the following:
CONVENTIONS & TRADE SHOWS (2015-2016)
DATE EVENT ATTENDEES
January-16 International CES 2016 163,000
November-15 Automotive Aftermarket Industry Week (AAIW) 2015 140,000
January-16 Las Vegas Market - Winter 2016 50,000
August-16 Las Vegas Market - Summer 2016 50,000
February-16 World of Concrete 2016 48,000
September-15 2015 Pack Expo Las Vegas 45,000
September-15 Super Mobility Week 40,000
March-16 Nightclub and Bar Show 2016 39,000
May-16 RECon 2016 36,000
June-16 International Communications Industries Association/ Infocomm 2016 35,000
May-16 National Hardware Show 2016 30,000
April-16 National Automobile Dealers Association 2016 30,000
March-16 Healthcare Information & Management Systems Society (HIMSS16) 30,000
October-15 National Association of Convenience Stores, Inc. (NACS) Exposition 2015 30,000
September-15 2015 Mr. Olympia 30,000
June-16 International Esthetics Cosmetics & Spa Conference (IECSC) 2016 25,000
November-15 American Academy of Opthalmology Annual Meeting 2015 25,000
November-15 National Business Aviation Association, Inc. (NBAA) - 2015 25,000
September-15 Interbike Expo 2015 25,000
January-16 Kitchen and Bath Industry Show 2016 24,000
July-16 Deafnation World Expo 2016 23,000
February-16 Safari Club International 44th Annual Hunters Convention 21,000
December-15 Power-Gen International Conference 2015 20,000
October-15 G2E: Global Gaming Expo 2015 17,000
October-15 ISSA / INTERCLEAN North America 2015 16,000
March-16 Western Veterinary Conference 2016 14,500
October-15 ABC Kids Expo 2015 14,000
October-15 Live Design International 2015 14,000
September-15 International Vision Expo West 2015 14,000
June-16 Waste Expo 2016 12,000
March-16 National Association of Pizzeria Operators Expo - 2016 12,000
March-16 International Wireless Communications Expo 2016 12,000
27
Strong Increase in Visitor Economics
The following chart presents a history of visitor volumes and total visitor revenue for Las Vegas:
LAS VEGAS TOURISM IMPACT
YEAR TOTAL VISITORS % CHANGE
TOTAL VISITOR
REVENUE
% CHANGE
REVENUE PER
VISITOR
% CHANGE
1988 17,199,808 --- 10,039,448,000 --- 584 ---
1989 18,129,684 5.4 11,912,941,000 18.7 657 12.6
1990 20,954,420 15.6 14,320,746,000 20.2 683 4.0
1991 21,315,116 1.7 14,326,554,000 0.0 672 (1.7)
1992 21,886,865 2.7 14,686,644,000 2.5 671 (0.2)
1993 23,522,593 7.5 15,127,167,000 3.0 643 (4.2)
1994 28,214,362 19.9 19,163,212,000 26.7 679 5.6
1995 29,002,122 2.8 20,686,800,000 8.0 713 5.0
1996 29,636,361 2.2 22,533,258,000 8.9 760 6.6
1997 30,464,635 2.8 24,952,189,000 10.7 819 7.7
1998 30,605,128 0.5 24,577,469,000 (1.5) 803 (2.0)
1999 33,809,134 10.5 28,695,178,000 16.8 849 5.7
2000 35,849,691 6.0 31,462,337,000 9.6 878 3.4
2001 35,017,317 (2.3) 31,907,492,000 1.4 911 3.8
2002 35,071,504 0.2 31,613,938,000 (0.9) 901 (1.1)
2003 35,540,126 1.3 32,777,906,000 3.7 922 2.3
2004 37,388,781 5.2 33,724,467,000 2.9 902 (2.2)
2005 38,566,717 3.2 36,733,453,000 8.9 952 5.6
2006 38,914,889 0.9 39,406,265,000 7.3 1,013 6.3
2007 39,196,761 0.7 41,578,079,000 5.5 1,061 4.8
2008 37,481,552 (4.4) 42,900,000,000 3.2 1,145 7.9
2009 36,351,469 (3.0) 35,200,000,000 (17.9) 968 (15.4)
2010 37,335,436 2.7 36,800,000,000 4.5 986 1.8
2011 38,928,708 4.3 40,200,000,000 9.2 1,033 4.8
2012 39,727,022 2.1 44,900,000,000 11.7 1,130 9.4
2013 39,668,221 (0.1) 45,200,000,000 0.7 1,139 0.8
2014 41,126,512 3.7 45,200,000,000 0.0 1,099 (3.5)
AVERAGE ANNUAL % CHANGE 3.4 6.0 2.5
Source: LVCVA
28
Strong Increase in Convention Attendance
With 11 million square feet of existing and planned convention space, Las Vegas
is one of the world’s most convention destinations. The Las Vegas Convention
Center is the primary Las Vegas convention venue, a state-of-the-art facility,
which features 3.2 million square-feet of exhibit and meeting space, and will
soon expand to 5.8 million square feet. The following demonstrates the strong
increase of convention attendance during the previous five years:
CONVENTION VISITATION
YEAR TOTAL VISITORS % CHANGE
1983 943,611 ---
1984 1,050,916 11.4
1985 1,072,629 2.1
1986 1,519,421 41.7
1987 1,677,716 10.4
1988 1,702,158 1.5
1989 1,508,842 (11.4)
1990 1,742,194 15.5
1991 1,794,444 3.0
1992 1,969,435 9.8
1993 2,439,734 23.9
1994 2,684,171 10.0
1995 2,924,879 9.0
1996 3,305,507 13.0
1997 3,519,424 6.5
1998 3,301,705 (6.2)
1999 3,772,726 14.3
2000 3,853,363 2.1
2001 5,014,240 30.1
2002 5,105,450 1.8
2003 5,657,796 10.8
2004 5,724,864 1.2
2005 6,166,194 7.7
2006 6,307,961 2.3
2007 6,209,253 (1.6)
2008 5,899,725 (5.0)
2009 4,492,275 (23.9)
2010 4,473,134 (0.4)
2011 4,865,272 8.8
2012 4,944,014 1.6
2013 5,107,416 3.3
2014 5,169,054 1.2
Annual Compound % Change 5.6
Source: LVCVA
29
4 Million Square Feet of
Convention Space in Development
The $2.5 billion convention center expansion will generate an
increase in demand of 500,000 visitors per year
Indicative of the strong growth in convention demand, in
February 2015 the Las Vegas Convention and Visitors Authority
(LVCVA) acquired the former Riviera hotel located on 23-acres
for $182.5 million. A planned $40 million demolition during
2015-2016 of the former hotel will lay the foundation for a $2.5
billion expansion of the Las Vegas Convention Center, increasing
convention capacity to 5.8 million square feet. The expansion
will transform the current convention center, rebranded as the
Las Vegas Global Business District, and support the demand
growth projected to be an additional 500,000 visitors per year.
Phase One is currently underway and includes developing
750,000 square-feet of new exhibit space and 187,500 squarefeet
of supporting meeting space, renovating and upgrading
the existing facility, incorporating touch screens, faster Internet
speeds, new restaurants and an updated façade. Phase II
includes the expansion onto the former Riviera site from a
current total footprint of 3.2 million square-feet to 5.7 million
square-feet of space, with new street infrastructure and new
centralized transportation hub for the entire city. Additionally,
the expansion project will include development of a new office
park in the neighborhood surrounding the center.
In addition to the LVCVA space, 350,000 square feet of convention
space at Mandalay Bay and 1,000,000 square feet of convention
space at Genting Group’s Resorts World are under construction.
Attendance (millions)
7
6.5
6
5.5
5
4.5
4
3.5
3
3.9
5.0 5.1
LAS VEGAS CONVENTION STATISTICS
5.7 5.7
Attendance
6.2
6.3
6.2
5.9
Conventions
4.5 4.5
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
4.9
5.0
5.2 million convention attendees
in 2014 isthe highest in 6 years and
represents significant potential for growth
5.1
5.2
30,000
25,000
20,000
15,000
10,000
5,000
# of Conventions
30
Development on the Strip
With approximately $21 billion in high-profile developments completed since 2008, the Strip has attracted significant investment capital
from both ownership entities that already possess a significant stake in the future success of the Strip and new capital sources seeking to
benefit from Las Vegas’ exceptional long-term fundamentals. Resort and casino ownership is largely consolidated among operators that
are devoted to continuing to increase visitation levels by upgrading the Las Vegas experience.
RECENT LAS VEGAS STRIP DEVELOPMENTS – 2013 TO 2018
PROPERTY
COST
($ MILLIONS)
CONVENTION
SPACE (SF)
ROOMS
TIMESHARE HOTEL
COMPLETED
2013
Caesars Palace - Nobu Hotel (former Centurion) $30 180 February 2013
The LINQ (Phase 1) $550 Fall 2013
TOTAL 2013 $580 0 180
2014
The Grandview at Las Vegas $55 400 February 2014
The LINQ (Phase 2) $230 849 February 2014
The Cromwell (Rebrand / Remodel) $185 May 2014
New York New York / Monte Carlo (Open Air Plaza) $50 June 2014
SLS Las Vegas (Rebrand / Remodel) $415 80,000 1,613 August 2014
Delano (Reband / Remodel) $80 September 2014
Red Rock Casino (Renovation) $35 Fall 2014
Golden Nugget (Remodel) $15 December 2014
TOTAL 2014 $1,065 80,000 2,862
2015
Wyndham Desert Blue $172 281 March 2015
Bellagio (Renovation) $55 April 2015
The Grand Bazaar Shops $50 February 2015
Caesars Palace (Omnia Nightclub) $38 March 2015
Treasure Island $15 April 2015
Galleria at Sunset $26 Spring 2015
Rock in Rio (MGM Resorts Festival Grounds) $20 May 2015
TOTAL 2015 $376 0 281
31
FUTURE DEVELOPMENT
PROPERTY
COST
($ MILLIONS)
CONVENTION
SPACE (SF)
ROOMS
TIMESHARE HOTEL
COMPLETED
2016
MGM Resorts International Areana (Indoor Arena) $375 April 2016
Mandalay Bay Resort & Casino (Renovation) $66 January 2016
Topgolf Las Vegas (Renovation) $50 Spring 2016
Toshiba Plaza $66 January 2016
Henderson Space and Science Center $63 Spring 2016
Thomas & Mack Center (Renovation) $47 Spring 2016
Tropicana Las Vegas (Renovation) $20 Spring 2016
Boulevard Mall (Redevelopment) $23 Fall 2016
TOTAL 2016 $710 0 0
2018
All Net Resort and Arena $1,400 CY 2018
Resorts World Las Vegas (Phase 1) $4,000 Spring 2018
TOTAL 2018 $5,400 0 0
TOTAL FUTURE DEVELOPMENT $6,110 0 0
32
Significant Projects
Resorts World Las Vegas – In 2013, the Genting Group purchased the 87-acre,
former Echelon site on the northern end of the Strip for $350 million. Branded
Resorts World, the planned Chinese Village-themed, four-phased mega-resort
broke ground June 2015 with opening planned in 2018. Construction of Phase I
on the multi-phased project is planned for 3,000-rooms, 22-villas, 3,500-gaming
machines, a 100,000-square-foot casino/gaming floor, 500,000-square-foot
convention center, dozens of dining options, more than 15-retail stores, a center
bar with live entertainment, a 50,000-square-foot, 58-foot tall exotic aquarium,
and the highest observation deck and sky park in the city. Subsequent phases
will add additional hotel rooms, gaming space, convention center space, a Great
Wall of China replica, a live panda exhibit, an indoor water park, a bowling alley,
a movie theater, and a 4,200-seat rotating theater.
Wyndham Desert Blue Time Share – The 19-story, 281-unit timeshare on Twain
Avenue just west of Interstate 15 opened in July 2015.
The Park by MGM – The Park is currently under construction between and around
New York-New York and Monte Carlo. The eight-acre site will feature natural
desert landscaping, cobblestone walkways, and several unique water features.
Man-made structures will proved shade during the day and will light up at night.
The outdoor space will feature live entertainment, patio style seating throughout,
ample shopping and indoor/outdoor dining options. This new venue between
New York-New York and Monte Carlo will connect The Park with the new Arena,
and both will open concurrently in the spring of 2016.
33
The Arena (MGM Resorts) – Construction broke ground in May 2014 on a 16-acre,
$375-million entertainment district located between Monte Carlo and New York-
New York. The MGM Resorts/AEG collaboration will consist of an indoor arena that
will feature 20,000-seats, 50-luxury suites, more than two-dozen private loge boxes,
club seating, and other specially designed exclusive hospitality offerings and dining
pavilions. Expected to hold more than 100-events annually, The Arena will be hosting
concerts, red-carpet award shows, professional sports events such as basketball or
hockey, boxing, mixed martial arts, and other major functions. Construction is slated
for completion in Spring 2016 and will open concurrently with The Park.
The Grand Bazaar Shops (Bally’s) – The $50-million outdoor retail complex is located
on the southeast corner of Las Vegas Boulevard and Flamingo Road, in the front portion
of the property. Inspired by great markets from around the world, the shops contains
110-stores, including Swatch, Superdry, Havaianas, and Campo Marzio. More than a
third of the property will feature restaurants, bars and food outlets. The main feature of
the bazaar shops is an eye-catching tower called the Swarovski Crystal Starburst. The
tower is positioned over the brand’s store and displays a midnight show of lights and
music. The retail complex opened in January 2015.
City of Rock (MGM Resorts) – Opened in May 2015, City of Rock is located on the
southwest corner of East Sahara Avenue and South Las Vegas Boulevard. The
$30-million open air venue is home to one of the largest music festival venues in the
world, Rock in Rio (RiR). The venue has a capacity of 85,000, and during RiR, it will
feature six stages, a Ferris wheel, a zipline, shopping and themed food courts. The
Rock in Rio festival will held biennially, and MGM plans to use the site for other mega
festivals, athletic events and concerts when not in use for RiR.
34
All Net Resort Arena – is being built at a cost of approximately $1.4 billion and is set to
open in early 2018 on the north end of the Las Vegas Strip. In addition to a spectacular
860,000-square-foot arena that is able to host big ticket events, the complex includes
the Victory Plaza shopping and dining district and a 44-story hotel with 500 specialty
suites. The arena at the All Net Resort features a unique retractable roof. The Victory
Plaza area covers 300,000 square feet and is a pedestrian-only plaza that offers
something akin to the Times Square experience in New York.
Mandalay Bay Convention Center (Phase 1 & 2) – A $66-million expansion on the
Mandalay Bay Convention Center completed is scheduled to complete January 2016.
Construction on Phase 1 completed July 2015 adding more than 350,000-square-feet
of exhibit space, as well as underground parking. Phase 2 of the expansion will
include 70,000-square-feet of additional ballroom space that will be divisible by five
breakout areas for corporate groups. When completed, the convention center will
total 2,050,000 square feet.
Shops at Tropicana – A new, $100-million, 275,000-square-foot, two-story, enclosed
shopping mall will feature luxe retail, a food court on the ground floor with five new
boutique restaurants and two Strip-facing restaurants. The project is expected to
begin in fall 2015 with an anticipated completion date in the 2017.
35
The Site is Visible to Over 42 Million Visitors Per Year
MCCARRAN INTERNATIONAL AIRPORT EXPANSION
McCarran International Airport is one of the busiest airports in the country. McCarran serves both short and long haul markets, along
with international markets. In 2014, Airports Council International ranked McCarran ninth in North America and 25th in the world for
passenger traffic, with approximately 43 million arriving and departing passengers each year. 2014 observed an increase of over 1 million
more passengers over 2013, or a 2.4% increase in traffic. With over 30 air carriers, McCarran provides nonstop service to domestic and
international destinations including Canada, Germany, Mexico, the United Kingdom and South Korea. 2014 was the highest year on record
for international tourism, with over 3.3 million visitors to the Strip.
Major expansion and improvements totaling $3.5 billion include Terminal 3 that opened in 2012 and the new $100 million control tower was
completed in early 2015. The 1.9 million-square-foot expansion of Terminal 3 increased the airport’s annual capacity to approximately 55
million passengers.
TOTAL PASSENGERS (MILLIONS)
50.0
45.0
40.0
35.0
30.0
International Passengers
Domestic Passengers
36.9
1.22 35.2 35.0
36.3
1.09
1.08 1.01
41.4
1.42
MCCARRAN AIRPORT PASSENGER TRAFFIC
44.3
1.82
46.3
2.15
47.7
2.24
42.9 MILLION
TOTAL PASSENGERS IN 2014
3.3 MILLION
INTERNATIONAL PASSENGERS
44.1
2.24
40.5
2.21
39.8
2.20
41.5 41.7
42.0
2.61 2.88 2.97
42.9
3.34
25.0
35.6 34.1 34.0 35.2 40.0 42.4 44.2 45.5 41.8 38.3 37.6 38.9 38.8 39.0 39.5
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
36
Las Vegas Monorail
Plans for the expansion of the Monorail place the line and potential stops adjacent to the Site. The Las Vegas Monorail is a six-stop, elevated
train system that travels along a 3.9-mile route connecting major hotels and attractions along the Strip. It enables passengers to travel the
length of the resort corridor beginning at the MGM Grand with stops at Bally’s/Paris, Flamingo/Caesars Palace, Harrah’s/Imperial Palace,
Las Vegas Convention Center, the hotel called LVH and ending at the intersection of Sahara Avenue and Las Vegas Boulevard. The train is
capable of transporting 3,200 passengers per hour in each direction and has carried over 50 million passengers.
Sahara Ave Station
LVH Station
Las Vegas Convention Center Station
Harrah’s/The Quad Station
Flamingo Station
Future Monorail
Bally’s/Paris Station
LAS VEGAS BLVD - THE STRIP
MGM Station
The
Site
37
38
Market Analysis
Overview
The Site is located within the Las Vegas Strip Gaming Enterprise Zoning
District (the “GED”). The GED supports the expansion of gaming and
entertainment activities and associated resort hotels. This zoning designation
offers an extremely flexible development approval process offering a number
of potential uses that can include, but are not limited to any combination of:
■■
Themed Resort and Hotel
■■
Casino and Gaming
■■
Condominiums
■■
Luxury/Upscale Retail
■■
Timeshares
■■
Dining and Entertainment
2014 LAS VEGAS STATISTICS
Visitor Volume 41,126,512
Hotel Room Inventory 150,544
Strip ADR $248.89
Strip Occupancy 90.2%
Strip RevPar $224.49
Convention Attendance 5,169,054
Convention Meetings 22,103
Clark County Gaming Revenue $9,554,002,000
Las Vegas Strip Gaming Revenue $6,372,526,000
39
Las Vegas Resort Hotel Market
The Las Vegas lodging market has historically attained occupancy levels well above the national average. The following table presents an
analysis of the Las Vegas lodging market since 1985:
LAS VEGAS LODGING STATISTICS
YEAR
INVENTORY
%
CHANGE
HOTEL
OCCUPANCY
%
CHANGE
MOTEL
OCCUPANCY
%
CHANGE
TOTAL
OCCUPANCY
%
CHANGE
TOTAL
ROOMS
OCCUPIED
%
CHANGE
1985 53,067 --- 84.7 --- 70.1 --- 79.8 --- 15,456,825 ---
1986 56,494 6.5 86.3 1.9 70.9 1.1 81.4 2.0 16,784,932 8.6
1987 58,474 3.5 87.0 0.8 74.0 4.4 83.4 2.5 17,800,070 6.0
1988 61,394 5.0 89.3 2.6 73.7 (0.4) 85.1 2.0 19,069,897 7.1
1989 67,391 9.8 89.9 0.7 72.5 (1.6) 85.2 0.1 20,957,253 9.9
1990 73,730 9.4 89.1 (0.9) 69.8 (3.7) 84.7 (0.6) 22,793,998 8.8
1991 76,879 4.3 85.2 (4.4) 62.6 (10.3) 80.3 (5.2) 22,532,851 (1.1)
1992 76,523 (0.5) 88.8 4.2 66.1 5.6 83.9 4.5 23,434,021 4.0
1993 86,053 12.5 92.6 4.3 69.7 5.4 87.6 4.4 27,514,586 17.4
1994 88,560 2.9 92.6 0.0 73.2 5.0 89.0 1.6 28,768,716 4.6
1995 90,046 1.7 91.4 (1.3) 72.4 (1.1) 88.0 (1.1) 28,922,775 0.5
1996 99,072 10.0 93.4 2.2 75.7 4.6 90.4 2.7 32,689,797 13.0
1997 105,347 6.3 90.3 (3.3) 68.8 (9.1) 86.4 (4.4) 33,222,230 1.6
1998 109,365 3.8 90.3 0.0 67.3 (2.2) 85.8 (0.7) 34,249,837 3.1
1999 120,294 10.0 92.1 2.0 68.6 1.9 88.0 2.6 38,638,433 12.8
2000 124,270 3.3 92.5 0.4 71.9 4.8 89.1 1.3 40,414,468 4.6
2001 126,610 1.9 88.9 (3.9) 63.8 (11.3) 84.7 (4.9) 39,142,115 (3.1)
2002 126,787 0.1 88.8 (0.1) 60.2 (5.6) 84.0 (0.8) 38,859,613 (0.7)
2003 130,482 2.9 89.6 0.9 60.5 0.5 85.0 1.2 39,760,735 2.3
2004 131,503 0.8 92.0 2.7 68.7 13.6 88.6 4.2 41,953,010 5.5
2005 133,186 1.3 91.8 (0.2) 72.0 4.8 89.2 0.7 43,362,698 3.4
2006 132,605 (0.4) 93.2 1.5 65.2 (9.4) 94.6 6.1 45,787,180 5.6
2007 132,947 0.3 94.0 0.9 64.5 (1.1) 90.4 (4.4) 43,867,192 (4.2)
2008 140,529 5.7 89.8 (4.5) 57.8 (10.4) 86.0 (4.9) 42,967,252 (2.1)
2009 148,941 6.0 85.3 (5.0) 50.1 (13.3) 81.5 (5.2) 41,986,134 (2.3)
2010 148,935 (0.0) 83.5 (2.1) 52.0 3.8 80.4 (1.3) 43,365,743 3.3
2011 150,161 0.8 86.9 4.1 56.0 7.7 83.8 4.2 45,654,165 5.3
2012 150,481 0.2 87.4 0.6 58.0 3.6 84.4 0.7 46,479,707 1.8
2013 150,593 0.1 87.1 (0.3) 59.8 3.1 84.3 (0.1) 46,191,449 (0.6)
2014 150,544 (0.0) 89.1 2.3 65.0 8.7 86.8 3.0 47,497,234 2.8
AVERAGE ANNUAL % CHANGE 3.7 0.2 (0.3) 0.3 3.9
YTD 5/14 149,347 --- 90.2 --- 66.8 --- 87.9 --- 19,909,507 ---
YTD 5/15 149,352 0.0 89.1 (1.2) 67.0 0.3 87.0 (1.0) 19,758,379 (0.8)
40
Luxury Resort Hotel Comparables
The following provides an overview of the anticipated competitive set
for a future hotel resort development at the Site. The more recently
opened properties are the Aria (as part of CityCenter) in 2009 and the
Cosmopolitan in 2010 Venetian/Palazzo and Wynn/Encore opened in
January and December of 2008, respectively. New ‘boutique’ entrants
to the Strip opening in 2014 include The Cromwell Las Vegas, an
upscale boutique property backed by Caesars Entertainment and SLS
Las Vegas. It should be noted that all of the newer properties are
geared toward the upper end of the market.
In May 2015, Genting Gaming announced the ground breaking
of Resorts World Las Vegas. Following this in June 2015, Crown
Resorts announced the purchase of the former Frontier site for the
development of Alon. These two projects will add approximately
4,000 high-end rooms to the Strip market.
41
SELECT LUXURY RESORTS AND CASINOS
ARIA RESORT & CASINO BELLAGIO THE COSMOPOLITAN VENETIAN / PALLAZZO WYNN / ENCORE
Hotel Summary
Owner MGM Resorts Intl. MGM Resorts Intl. Blackstone Las Vegas Sands Corp. Wynn Resorts Ltd.
Height 600 508 604 642 631
Acres n/a 76.00 8.45 67.00 215.00
Total Guest Rooms 4,004 3,933 2,959 7,095 4,750
2014 Average Daily Rate $217 $254 $307 $223 $274
2014 Occupancy 93% 93% 94% 88% 87%
2014 RevPar $202 $236 $287 $196 $238
Casino/Gaming Summary
Total Square Feet 150,000 156,000 99,719 225,000 186,000
# of Slot Machines 1,969 1,895 1,373 2,350 1,864
# of Tables 122 132 129 240 235
2014 Casino Revenue $422,979,000 n/a $203,247,000 $509,205,000 $687,436,000
Retail Summary
Retail The Shops at Crystals Via Bellagio n/a Grand Canal Shoppes Wynn Esplanade
Total Square Feet 500,000 44,000 35,744 875,000 99,000
# of Shops 57 12 16 160 25
Key Tenants
Louis Vuitton, Dolce &
Gabbana, Tiffany & Co.,
Roberto Vavalli, Bulgari,
Cartier, Van Cleef &
Arpels, Mikimoto
Bottega Veneta, Breguet,
Chanel, Dior, Fendi,
Giorgio Armani, Gucci,
Harry Winston,
Hermes, Louis Vuitton,
Prada,Tiffany & Co.
Allsaints, Spitalfields,
Sneaker Boutique,
Dna2050, Jason of
Beverly Hills, Molly
Brown’s Swimwear, Rent
the Runway, Stitched
Barney’s, Christian
Louboutin, Tory Burch,
Jimmy choo, Burberry,
Fendi, Diane von
Furstenberg, Michael
Kors, Sephora,
Swarovski
Alexander McQueen,
Cartier, Chanel, Dior,
Givenchy, Hermès, Louis
Vuitton, Manolo Blahnik,
Oscar de la Renta, Rolex
Entertainment Summary
# of Restaurants 16 20 13 38 13
# of Bars & Nightclubs 10 7 8 11 11
Convention/Meeting SF 300,000 200,000 151,500 2,300,000 284,000
Spa Square SF 80,000 55,000 50,000 134,000 n/a
42
Gaming Supply and Demand Analysis
Las Vegas is recognized worldwide as a premier gaming destination.
From traditional card and dice games, to slot machines and race and
sports book betting, the casino industry has flourished and evolved
into an international phenomenon. A significant portion of the visitor
revenue generated in the city is attributed to the gaming industry,
which posted $9.6 billion in revenue in 2014.
The initial step in analyzing supply and demand trends within a given
gaming market is to quantify the existing level of gaming inventory.
To quantify gaming supply levels, a review of all competitive gaming
facilities is performed. Once the market’s supply level is known, an
analysis of the demand for gaming facilities is performed.
Unlike traditional economic models of supply and demand, the price variable associated with gaming is largely determined by the consumer.
Gaming is an intangible product: the consumer is purchasing the “experience” and “excitement” casino gaming offers. The price that the
consumer is willing to pay for this experience is known as the “win,” and is quantified on a per-unit basis known as the “win per unit per
day” (WPUPD). Research indicates that the WPUPD, or the price a market can bear for gaming activity, is highly correlated to the level
of available gaming inventory. The actual WPUPD attained by a market, say $100 per gaming position, and provides an indication of the
marketwide demand for gaming. As will be further discussed, these demand levels within a market can be estimated through an analysis of
the actual WPUPD attained by the market. Historical fluctuations in the marketwide WPUPD at various levels of supply can provide insight
into the future demand for gaming. Further impacting the demand for gaming facilities in the market are current and projected trends in
economic and demographic factors such as population base, employment, disposable income levels, and visitation statistics. In addition,
seasonal fluctuations must be taken into consideration when analyzing demand trends.
Once the various demand trends have been identified, a variety of analytical methodologies may be employed to forecast gaming revenue
for an overall market or an individual property.
43
Gaming Supply Analysis
The following table presents an overview of the competitive themed Casino Resort properties as of year-end 2014 operating within the Las
Vegas Strip submarket. These properties contained 33,505 gaming devices and 1,979 table games.
COMPETITIVE SUMMARY
CASINO OWNER ROOMS
CASINO
SQUARE FOOTAGE
CASINO SF
PER ROOM
GAMING
DEVICES
TABLE
GAMES
SLS Las Vegas Stockbridge 1,613 54,000 33.5 806 77
The Cosmopolitan of Las Vegas Blackstone Group 2,960 110,000 37.2 1,360 124
Bally’s Casino Resort Caesars Entertainment 2,814 66,187 23.5 999 58
Bellagio MGM Resorts International 3,933 159,734 40.6 1,977 110
Caesars Palace Caesars Entertainment 3,340 136,573 40.9 1,265 98
Aria MGM Resorts International 4,004 200,544 50.1 1,726 101
Excalibur MGM Resorts International 3,991 89,074 22.3 1,202 72
Flamingo Hilton Caesars Entertainment 3,565 61,000 17.1 1,100 100
Harrah’s Las Vegas Caesars Entertainment 2,526 90,041 35.6 1,206 85
Luxor MGM Resort International 4,408 100,000 22.7 1,250 75
Mandalay Bay MGM Resort International 4,332 160,344 37.0 1,500 90
MGM Grand MGM Resort International 5,001 161,675 32.3 1,850 98
Mirage MGM Resort International 3,044 95,900 31.5 1,760 80
Monte Carlo MGM Resort International 3,213 102,207 31.8 1,400 55
New York-New York MGM Resort International 2,024 64,269 31.8 1,350 51
Palace Station Station Casinos 1,028 84,000 81.7 1,713 37
Palms George Maloof 703 55,689 79.2 1,317 45
Paris Caesars Entertainment 2,916 95,195 32.6 1,014 77
Planet Hollywood Caesars Entertainment 2,496 116,000 46.5 1,095 71
Riviera Riviera Holding Corp. 2,072 103,800 50.1 1,000 30
Treasure Island Phil Ruffin 2,885 55,680 19.3 1,335 61
Tropicana Resort and Casino Onex Corp. 1,878 62,011 33.0 892 40
Venetian/Palazzo Las Vegas Sands, Inc. 7,095 138,684 19.5 2,287 185
Wynn/Encore Wynn Resorts 4,750 109,900 23.1 2,101 159
TOTAL 76,591 2,362,607 30.8 33,505 1,979
44
Gaming Demand Analysis
The win per unit per day (WPUPD) statistic provides the basis for the analysis and projection of table game and gaming device revenues.
WPUPD is calculated by dividing total gaming revenues generated by a particular type of gaming unit by the number of gaming units
available. Overall, the market for gaming devices exhibited high levels of demand and absorption as evidenced by increasing WPUPD and
overall win levels during periods of increasing inventory.
The following exhibit summarizes the strong performance of the Strip gaming market within the industry standard “Casinos earning $72M
and Over”.
LAS VEGAS STRIP $72 MILLION AND OVER GAMING DEVICES
YEAR WIN (000S) % CHANGE UNITS % CHANGE WPUPD % CHANGE
1 1996 $1,442,375 --- 37,197 --- $106 ---
2 1997 1,486,193 3.0 39,033 4.9 $104 (1.5)
3 1998 1,719,351 15.7 45,078 15.5 $104 0.2
4 1999 1,928,428 12.2 47,962 6.4 $110 5.4
5 2000 2,107,673 9.3 50,203 4.7 $115 4.1
6 2001 2,055,412 (2.5) 47,175 (6.0) $119 4.1
7 2002 2,111,912 2.7 47,181 0.0 $123 2.7
8 2003 2,160,261 2.3 43,787 (7.2) $135 10.2
9 2004 2,535,568 17.4 44,989 2.7 $154 13.9
10 2005 2,789,933 10.0 43,377 (3.6) $176 14.4
11 2006 3,059,179 9.7 41,753 (3.7) $201 13.9
12 2007 3,142,884 2.7 40,049 (4.1) $215 7.1
13 2008 2,850,965 (9.3) 40,153 0.3 $194 (9.8)
14 2009 2,495,093 (12.5) 39,288 (2.2) $174 (10.3)
15 2010 2,437,193 (2.3) 38,032 (3.2) $176 0.9
16 2011 2,483,244 1.9 36,685 (3.5) $185 5.6
17 2012 2,553,266 2.8 35,452 (3.4) $197 6.1
18 2013 2,593,138 1.6 34,589 (2.4) $205 4.4
19 2014 2,546,721 (1.8) 33,504 (3.1) $208 1.4
AVG. ANNUAL % CHANGE 3.2 (0.6) 3.8
Source: Las Vegas Gaming Control Board
45
Gaming Demand Analysis
Demand for gaming can be classified into four primary sources: the leisure segment, local residents, tour and travel groups and convention
demand.
LEISURE DEMAND
Leisure visitation to Las Vegas is enormous with visitors taking advantage of the year-round favorable climate and multitude of attractions.
The leisure segment utilizes both table games and gaming devices and has a higher propensity to play table games than other segments.
According to the Las Vegas Convention Authority Visitors Profile Study, in 2014 approximately 47% of all visitors mentioned vacation or
pleasure, up significantly from 41% in 2013. Of those polled, 71% of all visitors said they gambled while in Las Vegas with an average
gambling budget of $530.
LOCAL DEMAND
Local demand plays a part in gaming revenue contribution to the Las Vegas market. However, the local segment’s impact on the Las Vegas
Strip is moderate. According to the Las Vegas Convention and Visitors Authority, 13% of locals gamble on the Strip with 45% gambling at
least once per week and 75% gambling at least once per month.
TOUR AND TRAVEL DEMAND
Las Vegas welcomed a record 41.1 million visitors in 2014, an all time record. Las Vegas tourism generates more than $45 billion in economic
impact for the local economy and supports 376,000 local jobs. Las Vegas is recognized worldwide as a premier gaming destination. From
traditional card and dice games, to slot machines and race and sports book betting, the casino industry has flourished and evolved into
an international phenomenon. A significant portion of the visitor revenue generated in the city is attributed to the gaming industry, which
posted $9.6 billion in revenue in 2014.
CONVENTION DEMAND
Convention demand within the Las Vegas market is significant. Las Vegas was the most popular trade destination (with a 25% market
share of the Trade Show Week 200 Shows in terms of net square footage) and third most popular convention destination in the nation. In
1990, approximately 1.7 million persons attended trade shows and conventions in Las Vegas; In 2014, convention attendance was up to 5.2
million, an increase of 8% annually over the last 25 years. Future convention expansion in demand is anticipated to see these rates of growth
continue for the foreseeable future.
46
Multifamily Housing and Condominium Overview
With an increase in demand for luxury living accommodations in Las Vegas and a 100% sell out of the existing supply of recently delivered
residential units, condominium prices have increased dramatically. The depth of demand far exceeds the amount of new supply forecasted
over the next five years. In addition, the economies of scale associated with new residential, retail, hotel and office development on the Las
Vegas Strip will only elevate the overall appeal of Strip living - and in turn push condominium values higher.
THE RESIDENCES AT MANDARIN ORIENTAL
3740 S. Las Vegas Blvd
DEVELOPER:
MGM Resorts
SUBMARKET:
The Strip
YEAR BUILT/SELLOUT: 2009
NUMBER OF HOMES: 225
STATUS TYPE SIZE SF LIST PRICE LIST PSF SALE DATE SOLD PRICE SOLD PSF HOA FEES
ACTIVE 3-BED/3-BATHS 3,922 $5,950,000 $1,517 - - - $3,173
ACTIVE 2-BED/2-BATHS 2,998 $3,300,000 $1,101 - - - $2,765
ACTIVE 2-BED/2-BATHS 2,998 $2,799,888 $934 - - $2,535
SOLD 3-BED/3-BATHS 5,628 $5,400,000 $959 3/23/15 $5,400,000 $959 $5,628
SOLD 3-BED/3-BATHS 3,922 $4,750,000 $1,211 5/20/15 $3,875,000 $988 $3,344
SOLD 3-BED/3-BATHS 3,980 $3,975,000 $999 3/31/15 $3,800,000 $955 $3,386
SOLD 2-BED/2-BATHS 2,755 $3,400,000 $1,234 5/20/15 $3,400,000 $1,234 $2,512
SOLD 2-BED/2-BATHS 2,755 $2,900,000 $1,053 12/31/14 $2,900,000 $1,053 $2,575
47
Multifamily Housing and Condominium Overview
VEER TOWERS
3722 S. Vegas Blvd
DEVELOPER:
MGM Resprts Internationa
SUBMARKET:
The Strip
YEAR BUILT/SELLOUT: 2010
NUMBER OF HOMES: 674
STATUS TYPE SIZE SF LIST PRICE LIST PSF SALE DATE SOLD PRICE SOLD PSF HOA FEES
ACTIVE 3-BED/3-BATHS 3328 $2,995,000 $900 - - - $2,053
PANORAMA TOWERS
4525 Dean Martin Dr
DEVELOPER:
Laurence Hallier
SUBMARKET:
Off Strip
YEAR BUILT/SELLOUT: 2006
NUMBER OF HOMES: 2006
STATUS TYPE SIZE SF LIST PRICE LIST PSF SALE DATE SOLD PRICE SOLD PSF HOA FEES
ACTIVE 3-BED/3-BATHS 4,820 $2,950,000 $612 - - - $3,120
ACTIVE 2-BED/2-BATHS 3,414 $2,199,000 $644 - - - $2,116
48
Multifamily Housing and Condominium Overview
TRUMP TOWERS
2000 Fashion Show Drive
DEVELOPER:
Donald Trump
SUBMARKET:
The Strip
YEAR BUILT/SELLOUT: 2008
NUMBER OF HOMES: 430
STATUS TYPE SIZE SF LIST PRICE LIST PSF SALE DATE SOLD PRICE SOLD PSF HOA FEES
ACTIVE 3-BED/3-BATHS 3340 $3,350,000 $1,003 - - - $2,877
ACTIVE 3-BED/3-BATHS 3329 $2,099,000 $631 - - - $3,038
49
50
Las Vegas Retail Market
Overview
The Las Vegas Strip has historically outperformed competitive U.S. retail markets and continues to experience very strong absorption of
new construction, low vacancy rates, and an abundance of retail tenants seeking to access high-traffic pedestrian locations. These factors
together with controlled levels of new development will cause significant long-term rent increases across the submarket.
Increasing Levels of Visitor Spending – More than half of the 41 million visitors to Las Vegas each year spend time shopping along the Las
Vegas Strip. Average per capita visitor spending on shopping, dining and entertainment during 2014 was $815. As demonstrated in the
exhibit below, consumers are allocating a larger percentage of their total spending on shopping and entertainment.
ECONOMIC VISITOR PROFILE 2008 – 2014
2008 2009 2010 2011 2012 2013 2014
Average number of adults in immediate Party 2.4 2.4 2.4 2.3 2.4 2.4 2.4
Proportion of visitors with persons under 21 in their immediate party 6.0% 8.0% 7.0% 10.0% 11.0% 10.0% 10.0%
Proportion of visitors who stayed overnight 99.6% 99.8% 99.3% 99.8% 99.7% 99.8% 99.6%
Days stayed (average) 4.5 4.6 4.6 4.7 4.3 4.3 4.2
Nights stayed (average) 3.5 3.6 3.6 3.7 3.3 3.3 3.2
Proportion of visitors who stayed in a hotel or motel room 94.0% 96.0% 95.0% 95.0% 96.0% 96.0% 96.0%
Number of room occupants 2.1 2.1 2 2.1 2.1 2.2 2.1
Lodging expenditures (average per night) $101.68 $75.78 $79.64 $84.04 $93.13 $83.62 $86.55
Proportion of visitors who bought a package or travel group trip 15.0% 15.0% 16.0% 18.0% 14.0% 13.0% 18.0%
Average cost of package per person $746.69 $640.29 $651.02 $757.83 $743.65 $868.24 $815.14
Average trip expenditures of food and drink $273.39 $250.32 $256.82 $274.69 $256.11 $278.95 $281.88
Average trip expenditures for local transportation $59.26 $53.31 $62.87 $64.25 $57.77 $59.68 $68.83
Average trip expenditures for shopping $121.90 $101.97 $122.80 $129.34 $149.29 $140.90 $149.77
Average trip expenditures for shows $51.64 $39.87 $49.28 $47.52 $42.89 $38.45 $47.56
Average trip expenditures for sightseeing $7.12 $5.77 $7.21 $10.24 $9.63 $9.29 $14.49
Average trip gambling budget $531.98 $481.57 $466.20 $447.63 $484.70 $529.57 $530.11
51
The Strip contains some of the highest visitor counts and retail sales per square
foot in the world. High profile retail properties that would compete with a
future luxury or lifestyle retail development at the Site are summarized below.
Located just south of the Site, Town Square Las Vegas contains a world-class
902,000 square-foot regional lifestyle center anchored by Apple, AMC Cinemas,
Whole Foods, H&M, Old Navy, Staples, Guitar Center and a recently opened
Saks Off Fifth Avenue.
Fashion Show Mall, a ±1.9 million square-foot regional mall, is located at the
northwest corner of Las Vegas Boulevard and Sands Avenue. It underwent a $1
billion expansion and renovation in 2003. Anchors at this high-end fashion mall
include Neiman-Marcus, Nordstrom, Saks, Robinson-May, Dillard’s, Macy’s
and Bloomingdales Home.
Built in 1992, Forum Shops contains ±510,000 square feet. Major tenants
include Niketown and high-end fashion houses such as Hugo Boss, Armani,
Burberry, Christian Dior, Ferragamo, and Valentino.
The Grand Canal Shoppes at The Venetian is located on the second floor of the
Venetian Hotel. Built in 1999, this mall contains ±500,000 square feet. It also
features specialty shops such as St. John, Cannaletto, Sephora, Ann Taylor,
and Bebe. The Palazzo resort opened in early 2008 and The Shoppes contain
over 50 international boutiques and is anchored by Barneys New York. Other
boutiques include Coach, Ralph Lauren, Burberry, and Christian Louboutin.
The newest addition to the retail sector is the Crystals Shopping Center which
is located in the City Center Development.
52
Opened in 2013, The Linq is owned by Caesars Entertainment and is Las Vegas’
newest dining, shopping, and entertainment district. The focal point is the High
Roller, a 550-foot observation wheel -- the tallest in the world -- offering 360 degree
views of the Las Vegas valley. This high-energy marketplace offers approximately
40 shops and restaurants in a 200,000-square-foot area. Restaurants and nightlife
includes: O’Shea’s Casino, Chayo Cocina, Off the Strip Bistro, Purple Zebra,
Sprinkles Cupcakes, Starbucks, Ghiradelli, Yard House, Tilted Kilt and Flour &
Barley. Shops include The Polaroid Museum, Pier 30, Koto, Bella Scarpa, 12A.M.
Run, Chilli Beans, Goorin Bros., Kitson and Ruby Blue. The LINQ Promenade also
features Brooklyn Bowl, a music venue that holds a capacity of 2,000-plus concert
goers. Brooklyn Bowl has a restaurant, 32 bowling lanes, a section to watch sports
during the day, nightly live performances and a nightclub area.
The Crystals Shopping Center includes high end stores such as Blvgari, Cartier,
Christian Dior, Fendi, Gucci, Harry Winston, Hermes and Jimmy Choo. Crystals
houses over 41 retailers and six restaurants.
The Cosmopolitan opened in December 2010 and contains approximately 38,000
square feet of retail space. The Cosmopolitan retail offers more than 60 specialty
shops and boutiques including AllSaints, Spitafields, Beckley, CRSVR Sneaker
Boutique, DNA 2050, Droog, Molly Brown’s Swimwear, Monogram, Retrospecs &
Co., Skins 612 Cosmetics, Stitched, and Vitals. Retail and entertainment attractions
include a number of clubs.
53
Global Retail Location
The Site’s location on Las Vegas Boulevard
is one of the most highly trafficked shopping
and entertainment districts in the world.
Las Vegas’ unique shopping experience is
an integral component of its international
identity as a premier entertainment and resort
destination. Significant increases in tourism
and exciting new resort developments are
attracting new retailers from around the
globe.
Strong Growth in Tourism and Conventions
– Las Vegas tourism and local residents
generate retail revenues exceeding $15
billion per year within a 5-mile radius of the
Site. The Strip is as an increasingly popular
destination for family-oriented and middlemarket
vacations as well as the nation’s most
preferred location for conventions and trade
shows. During 2015, Las Vegas will attract
over 42 million visitors and nearly 5 million
convention attendees.
Strong Retail Trade Potential – As
demonstrated in the exhibit below, the Site
provides significant retail trade potential
within a 1-, 3- and 5-mile radius of the location.
54
RETAIL TRADE POTENTIAL
1.0 MILE 3.0 MILES 5.0 MILES
Total Retail Potential $1,493,433,472 $7,414,447,521 $15,213,795,034
Motor Vehicle & Parts Dealers $23,288,030 $323,988,797 $1,796,642,859
Furniture & Home Furnishings Stores $14,207,613 $86,794,421 $205,922,033
Electronics & Appliances Stores $16,175,555 $185,460,629 $461,963,988
Building Material, Garden Equipment Stores $21,169,480 $304,309,823 $566,970,483
Food & Beverage Stores $36,293,886 $341,682,473 $946,812,080
Health & Personal Care Stores $44,228,545 $191,845,413 $476,522,802
Gasoline Stations $29,830,182 $288,545,852 $591,613,648
Clothing & Clothing Accessories Stores $434,856,181 $1,434,339,776 $2,325,409,263
Sporting Goods, Hobby, Book, Music Stores $11,921,901 $83,396,033 $226,418,173
General Merchandise Stores $169,718,694 $909,634,225 $1,903,876,680
Miscellaneous Store Retailers $65,322,811 $256,587,817 $519,998,572
Foodservice & Drinking Places $526,781,823 $1,595,920,727 $2,437,743,867
Under Construction Entertainment Destinations Drive Retail Demand – In addition to mega projects completed in the past few years such as
City Center and Crystals, new projects under construction surrounding the Site will significantly increase pedestrian traffic in the immediate
area. Situated within two block of the Site, MGM’s The Lot, AEG’s The Arena, and Mandalay Bay’s Convention Center expansion will draw
hundreds of thousands of pedestrian foot traffic to the immediate area. Additionally, there are over 450,000 square feet of new lifestyle retail
in planning at Tropicana and Las Vegas Boulevard with the Shops at Tropicana and Excalibur.
Expanding Pedestrian Synergies Between New Retail – The Crystals at CityCenter to the north and the Town Square Las Vegas to the south
have expanded the retail inventory within three blocks of the Site. Each of the retail projects is a Strip-accessible development, encouraging
greater levels of pedestrian traffic along Las Vegas Boulevard. Retailers located within these two projects include: Apple, H&M, Prada,
Gucci, Versace, Tom Ford, Mikimoto, Balenciaga, Wolfgang Puck (2 locations), Katana, Louis Vuitton, Zegna, Rolex and Tiffany & Co.
Strong Residential Demand on the Strip Resort Corridor – The Resort Corridor contains the largest concentration of recent vertical high-rise
developments in the nation with approximately 10,000 new residences within one mile of the Site. The amenity base on Las Vegas Boulevard
has established the Strip as a preferred location for residents.
55
2. Mandalay Bay Place 5. The Forum Shops at Caesars
8. Fashion Show Mall
3. Crystals at CityCenter
4. Miracle Mile Shops
6. Grand Canal Shoppes / 6. The Shoppes at the Palazzo
56
Competitive Retail Rent Survey
1. TOWN SQUARE LAS VEGAS
Town Square Las Vegas contains a worldclass
902,335 square-foot regional lifestyle
center anchored by AMC Cinemas, Whole
Foods, H&M, Container Store, Gameworks,
Old Navy, Staples, Guitar Center and a
recently opened Saks Off Fifth Avenue. In
addition, Town Center Las Vegas includes
approximately 243,000 square feet of Class A
office space. The property is approximately
90% occupied with retail rents ranging from
$40 to $80 per square foot. Tenant sales
are reported to range from $400 to $600 per
square foot.
2. MANDALAY PLACE
Mandalay Place was completed in 2003 and
is comprised of a 90,000-square-foot unthemed
retail center that spans between
Mandalay Bay Resort and Casino and Luxor.
The property is currently 95% occupied with
rents ranging from $60 to $90 per square foot.
The center has an array of shops including
Nike Golf, Urban Outfitters and Fredrick’s
of Hollywood. Tenant sales are reported to
range from $500 to $600 per square foot.
3.CRYSTALS AT CITYCENTER
Opened in 2009, Crystals at CityCenter is
situated on a 67-acre site at the southwest
corner of Las Vegas Boulevard South and
Harmon Avenue. With over 425,000 square
feet of luxury and boutique shopping space,
Crystals is the retail anchor of CityCenter’s
first phase. A select list of world-class
retailers at Crystals includes Emilio Pucci,
DKNY, Stella McCartney, Assouline, Bally,
Bottega Cucinelli, Bulgari, Cartier, Christian
Dior, Ermenegildo Zegna, Fendi, Gucci,
Hermès, Ilori, Kiton, Louis Vuitton, Marni,
Mikimoto, Prada, Tiffany & Co., Versace,
and Yves Saint Laurent. Crystal’s mantra is
“Shopping.Dining.Nightlife,” and it offers
some of the Strip’s premier restaurants and
nightclubs including Mastro’s Ocean Club,
Wolfgang Puck, Beso Steakhouse, The Cup,
The Pods, Social House, Todd English P.U.B.,
and Eve the nightclub. Crystals at CityCenter
reported sales ranging from $900 to $1,500
per square foot with rental rates that range
from $90 to $120 per square foot.
4. MIRACLE MILE SHOPS
Miracle Mile Shops contains 489,671 square
feet and are located at the northeast corner
of Las Vegas Boulevard and Harmon Avenue.
After Forum Shops and Grand Canal, this
was the third major specialty retail project
to open on the Strip and is contained within
the Planet Hollywood Resort and Casino.
Miracle Mile Shops boasts a 1.2-mile retail/
entertainment complex with modernized
storefronts, people movers, a backlit-sidewalk
water feature, LED video screens, crystal
chandeliers and contemporary, color-coded
kiosks. The center features 170 specialty
stores including Urban Outfitters, Ben
Sherman, Quiksilver, bebe, Sephora, French
Connection, Betsy Johnson, Frederick’s of
Hollywood, H&M and True Religion Brand
Jeans. The property supports 15 restaurants,
including Aromi D’Italia, Cabo Wabo Cantina,
Pampas Churrascaria Brazilian Grille, La
Salsa Cantina, Cheeseburger Las Vegas and
Blondies Sports Bar & Grill. Miracle Mile
Shops is currently 93% leased with tenant
sales levels ranging from $800 to $900 per
square foot with rents ranging from $65 to
$85 per square foot.
57
5. FORUM SHOPS AT CAESARS PALACE
Forum Shops at Caesars Palace, originally
constructed in 1992 and expanded in phases
during 1997 and 2004, was the first major
specialty retail development on Las Vegas
Boulevard. Forum Shops has a prominent
position on the Strip, situated on the west
side of Las Vegas Boulevard, north of
Flamingo Road, between Caesars Palace
and The Mirage, and is configured with a
highly “themed” retail and entertainment
environment. The property is 99% leased,
attracting an estimated 22 million visitors
per year and is generally considered the
most dominant retail center on the Strip
with 150 specialty tenants that include
Anthropologie, Jimmy Choo, Coach, Louis
Vuitton, Montblanc, John Varvatos, Victoria’s
Secret, Versace, Bvlgari, Cartier, De Beers,
Harry Winston, Tiffany & Co., Abercrombie
& Fitch, Armani Exchange, Brooks Brothers,
Zegna and Cheesecake Factory. Tenant
sales at Forum Shops at Ceasars Palace are
approximately $1,000 to $1,200 per square
foot with average rents ranging from $100 to
$125 per square foot.
6.THE GRAND CANAL SHOPPES
Opened in 1999, the Grand Canal Shoppes
at the Venetian was fully leased after three
months. Fashioned after the Forum Shops,
the property is heavily themed with a canal
flowing through the middle of the concourse
area. The property consists of 536,890 square
feet including mezzanine spaces with current
rents ranging from $85 to $110 per square
foot. Average tenant sales range from $900
to $950 per square foot, and as a result of
the project’s immediate success, a second
phase connected via pedestrian bridge to
the Palazzo Resort was recently developed
and dubbed Shoppes at Palazzo. The project
is currently 94% leased and includes key
tenants; Ann Taylor, Banana Republic, bebe,
Coffee Bean and Tea Leaf, Cache, Sephora
and Valentino.
7.THE SHOPPES AT PALAZZO
Delivered in 2007 with a Grand Opening
in January 2008, the 363,714-square-foot
Shoppes at Palazzo is situated within the
Palazzo Resort and is an expansion of the
highly successful Grand Canal Shoppes. The
Shoppes at Palazzo is a three-story enclosed
specialty center with heavily themed,
decorative characteristics intended to capture
the essence of Italy. The center is anchored
by Las Vegas’ first Barneys New York and
features many premier luxury brands
including Jimmy Choo, Burberry, Van Cleef
& Arpels and Piaget. Upscale restaurants
include Emeril Lagasse’s Table 10, Wolfgang
Puck’s Cut and Shimon Bokovza’s Sushi
Samba. The center is currently 89% occupied
with tenant sales ranging from $900 to $925
per square foot and rents ranging from $80
to $100 per square foot.
8. FASHION SHOW MALL
Fashion Show Mall, originally developed in
1981, was expanded in two phases during
2002 and 2003 to its current size of 1.9 million
square feet. The property has a significant
presence along the Strip, with a 600-foot
canopy structure shading the outdoor
plaza area fronting Las Vegas Boulevard.
The project includes seven department
store anchors including Nordstrom,
Bloomingdale’s, Macy’s and Neiman
Marcus, as well as 250 specialty stores and
restaurants. Fashion Show Mall reports
tenant sales ranging from $802 to $983 per
square foot and average rents ranging from
$80 to $88 per square foot.
58
CompetitiveRetail Rent Survey
NO. PROPERTY DESCRIPTION ANCHOR TENANTS
1 Town Square
Las Vegas Blvd. & 215
Las Vegas, NV
2 Mandalay Bay Place
Las Vegas Blvd. & Tropicana
Las Vegas, NV
3 Crystals at CityCenter
Las Vegas Blvd. S of Harmon
Las Vegas, NV
4 Miracle Mile Shops
Las Vegas Blvd. & Harmon
Las Vegas, NV
5 Forum Shops at Caesars
Las Vegas Blvd. N of Flamingo
Las Vegas, NV
6 The Grand Canal Shoppes
3377 Las Vegas Blvd.
S Las Vegas, NV
7 The Shoppes at the Palazzo
3327 Las Vegas Blvd.
S Las Vegas, NV
8 Fashion Show Mall
3200 Las Vegas Boulevard
S. Las Vegas, NV
Sub-Type: Lifestyle Center
Year Built: 2008
Total GLA: 900,000
Sub-Type: Specialty Center
Year Built: 2003
Total GLA: 90,000
Sub-Type: Specialty Center
Year Built: 2009
Total GLA: 360,000
Year Built: 2000
Expansion: 2007
Renovation: 2008
Total GLA: 490,000
Sub-Type: Specialty Center
Year Built: 1992
Expansion: 1997
Rennovation: 2004
Total GLA: 650,000
Sub-Type: Specialty Center
Year Built: 1999
Total GLA: 500,000
Sub-Type: Specialty Center
Total GLA: 320,000
Anchor GLA: 85,000
Anchor Ratio: 27%
Sub-Type: Super Regional Center
Year Built: 1981
Expansion: 1993 and 2002
Renovation: 2002
Total GLA: 1,868,219
Anchor GLA: 1,259,154
Anchor Ratio: 67%
RENT/SF
IN-LINE SHOP
SALES/SF
VACANCY
Saks, Whole Foods, Apple $40 - $80 $400 -$600 10.0%
Retail bridge between Mandalay & Luxor
with shops, restaurants
Upscale specialty retail project on Las
Vegas Blvd. in CityCenter
$60 - $90 $500 -$600 5.0%
$90 - $120 $900 -$1,500 12.0%
Specialty retail center at Planet Hollywood $65 - $85 $800 -$900 7.0%
Upscale/themed retail project at Caesars $100 - $125 $1,000 -$1,200 1.0%
Upscale/themed retail project at The
Venetian
$85 - $110 $900 -$950 6.0%
Barney’s New York $80 - $100 $900 -$925 11.0%
Dillard’s, Nordstrom, Neiman Marcus, Saks
Fifth Avenue, Macy’s-North, Forever 21
$80 - $100 $800 -$1,000 4.0%
59
Retail Construction on Las Vegas Boulevard
The following table summarizes the retail construction on the Las Vegas Strip since 2000.
PROPERTY ADDRESS / LOCATION RENTABLE STATUS
2000 Construction
Miracle Mile Shops (Desert Passage -
Rebranded)
3667 Las Vegas Boulevard 490,000 Complete
Showcase Mall Phase II 3785 Las Vegas Boulevard 40,000 Complete
TOTAL 530,000
2002 Construction
Fashion Show Mall Expansion Phase I 3200 Las Vegas Boulevard 450,000 Complete
TOTAL 450,000
2003 Construction
Boulevard Collection Las Vegas Boulevard @ Sahara 50,000 Complete
Mandalay Place 3950 Las Vegas Boulevard 90,000 Complete
TOTAL 140,000
2004 Construction
Fashion Show Mall Expansion Phase II 3200 Las Vegas Boulevard 609,500 Complete
Hawaiian Marketplace 3742 Las Vegas Boulevard 80,000 Complete
Forum Shops at Caesars Palace Phase III 3500 Las Vegas Boulevard 167,000 Complete
TOTAL 856,500
2007 Construction
The Shoppes at Palazzo 3325 Las Vegas Boulevard 364,000 Complete
Town Square Las Vegas Las Vegas Blvd @ I-215 925,000 Complete
TOTAL 1,289,000
2009 Construction
Crystals at CityCenter E Harmon Ave @ Las Vegas Blvd 425,000 Complete
Showcase Mall III Las Vegas Blvd @ Tropicana Ave 97,320 Complete
TOTAL 522,320
60
PROPERTY ADDRESS / LOCATION RENTABLE STATUS
2010 Construction
Cosmopolitan Las Vegas Blvd @ Flamingo Rd 38,000 Complete
TOTAL 38,000
2012 Construction
Harmon Corner 3717 S Las Vegas Boulevard 110,184 Complete
TOTAL 110,184
2014 Construction
The Linq Las Vegas Blvd @ Caesars Palace Dr. 300,000 Complete
TOTAL 300,000
2015 Construction
Shops at TI Las Vegas Blvd @ Spring Mountain Rd 48,000 Complete
Grand Bazaar Shops Las Vegas Blvd @ Flamingo Rd 26,500 Complete
TOTAL 74,500
Under Construction and Planned
Alon Las Vegas Blvd @ Riviera Blvd 100,000 Under Construction
ResortWorld Las Vegas Blvd @ Desert Inn Rd 200,000 Under Construction
Shops at Excalibur Las Vegas Blvd @ Tropicana 300,000 Planned
Shops at Tropicana Las Vegas Blvd @ Tropicana 350,000 Planned
TOTAL 950,000
TOTAL COMPLETED (SF) 5,260,504
TOTAL UNDER CONSTRUCTION (SF) 300,000
61