Las Vegas Commercial Real Estate Wrap-Up – March 2020
- Apr 01, 2020
The strongest initial impacts of the new coronavirus hit Las Vegas, with travel restrictions and social distancing rules causing multiple hotels and casinos to shutter until further notice. At the same time, the hospitality sector did not remain quiet: The Tropicana changed hands for nearly $338 million in a large leaseback deal intended to provide the casino operator liquidity during the crisis. Read our March list of Las Vegas must-reads:
1. DEVELOPMENT – Construction on Raiders’ Allegiant Stadium continues.
Work on the $1.9 billion development continued, even after a worker at the site tested positive for COVID-19, according to Silver & Black Today. The roof framing and some of the signage are at or near completion. Work also started on the stadium’s 27,600-square-foot video board, which will be the largest of its kind in the city. The site is located at 3333 Al Davis Way.
2. DEAL – Cushman & Wakefield arranges sale of office asset.
Winner Cos. acquired the 37,730-square-foot asset for $3.9 million from Hardy Cos., according to public records. The brokerage team that represented the seller included Charles Moore, Marlene Fujita and Hunter Bradshaw. Located on 2 acres at 6425 W. Sahara Ave., the two-story property was built in 1995.
3. DEAL – Gaming & Leisure Properties to acquire Tropicana Las Vegas.
The company reached a leaseback agreement with owner Penn National Gaming to purchase the Tropicana Las Vegas Casino Hotel Resort in exchange for a $337.5 million rent credit. Penn National will continue to manage the asset, located at 3801 S. Las Vegas Blvd., which it acquired for $360 million in 2015. The deal includes a ground lease for a planned casino project in Morgantown, Pa., and grants Penn the option to acquire the operations of GLPI’s Hollywood Casino in Perryville, Md.
4. OPERATIONS – All Vegas casinos shutter amid coronavirus concerns.
Following a statewide closure order effective March 17, MGM Resorts International closed its casinos and hotels, with Wynn Resorts also suspending operations at Wynn Las Vegas and Encore. Other closed hospitality assets include Las Vegas Sands’ Venetian and Palazzo resorts. Companies in the sector suspended activity for a minimum of two weeks.