$400M Purchase of 110 Acres on Las Vegas Strip Closes
- Mar 13, 2008
SDS Investments L.L.C. has wrapped up the acquisition of 110 acres of land along the Las Vegas Strip, where the pool of developable parcels is greatly limited and the prices are sky-high. The company, a joint real estate investment venture headed up by the Sapir Organization, relied on a $400 million mortgage to complete the deal.It was a final 52-acre plot that brought a three-year period of assembling clusters of acreage to an end. Located off Las Vegas Blvd. and I-15, the land sits in the South Strip area of the famous stretch. The South Strip is at the southernmost point of the hotel zone on Las Vegas Blvd., spanning from Mandalay Bay Resort & Casino to South Point Hotel Casino & Spa. “Land values have increased on the Strip so that the ripple effect has been the coveting of land in outlying areas,” Larry Davis, SDS managing member, told CPN today. “The South Strip has emerged as an alternate area that’s viable for large-scale development.” SDS has not revealed any potential development plans for the vast collection of parcels; however, the company’s investment strategy centers on the creation of large-scale projects in thriving markets from Los Angeles to New York. “The land’s zoning enables us to do any type of commercial development,” Davis said. “In terms of what we want to do, it has so many potential uses.” With such a substantial amount of space to play with, SDS would certainly have the freedom to join the long list of companies that are in the midst of constructing or planning behemoth mixed-use projects. Partners MGM Mirage and Dubai World, for example, will wrap up the $7 billion development of the 18 million square-foot CityCenter in 2009. Last month, Moulin Rouge Development Corp and Republic Urban Properties L.L.C. revealed plans to spend $700 million to $1 billion to redevelop the once celebrated Moulin Rouge into a hotel property with 700 guestrooms, retail, and a Museum & Cultural Center. New York-based, SDS Investments in a private real estate investment group that targets high-yield real estate investment and development opportunities around the globe. Over its three-year existence, the firm has invested in projects with a total capitalization of more than $4 billion. Also headquartered in New York, the Sapir Organization is a private real estate holding and development concern with a portfolio consisting of 7 million square feet of premium office space in Manhattan. The company’s project pipeline spans the United States and Mexico and is valued at $2 billion.