Tourism Authority in Las Vegas to Decide on Selling Old Riviera Property for $125 Million
Following a failed land deal last year, the Las Vegas Convention and Visitors Authority (LVCVA) has found a new suitors for the 10 acres of Las Vegas Strip land that once housed the Riviera casino hotel. These buyers are prepared to pay $125M, $5M more than the previous bid.
The LVCVA is set to vote on selling the property, located south of the Fontainebleau on Las Vegas Boulevard at Elvis Presley Boulevard, at an upcoming meeting on March 14. This includes covering closing costs amounting to $2M.
As per the LVCVA's meeting agenda, the potential purchasers are Las Vegas property developer Brett Torino and Paul Kanavos, the chair and CEO of Flag Luxury Group of New York. These two have a history of partnership, having collaborated on the Harmon Retail Corner, which opened in 2012 at the intersection of Las Vegas Boulevard and Harmon Avenue, with tenants like Sugar Factory and Bubba Gump Shrimp Co. They are also constructing 63, a four-story shopping mall next to The Shops at Crystals within the CityCenter complex. Among the future tenants of 63 is the Ocean Prime restaurant chain.
If the 14-member LVCVA board approves the sale, the buyers will be required to make a $3M non-refundable deposit within five days, followed by another $2M after 90 days. The deal must be finalized by September 11.
The revenue generated from the sale will contribute to a planned $600M renovation of the Convention Center, set to commence in April.
Two Strikes and You're In?
Last October, the LVCVA announced it would sell the same property for $120M to CB Investment SpA. This company was controlled by Chilean billionaire Claudio Fischer, who developed the Monticello casino resort near Santiago, Chile, and the Park Hyatt casino hotel in Argentina.
When the sale did not close by the deadline of December 15, 2022, the LVCVA terminated the agreement and retained a $7M non-refundable deposit. In interviews, Fischer cited rising US interest rates as the reason for pulling out.
The LVCVA obtained the 26-acre Riviera site for $182.5M in 2015. This land was later used to construct West Hall, a $1B, 1.4 million-square-foot expansion to the Las Vegas Convention Center, which opened in June 2021.
