Las Vegas real estate market report

One of the world’s richest men Yitzhak Tshuva, a billionaire from Israel, is negotiating with Phil Ruffin to buy the New Frontier Casino (built in 1942) in Las Vegas. The deal is estimated at $1.5 billion dollars and will require another $400 million to renovate the project. The only plans the new owner has disclosed so far is that the current tower could become a set of luxury apartments.

Phil Ruffin, the current owner, has been waiting for the correct financing to execute plans to turn the casino into a Swiss style resort. He’s been waiting about 2 years so far. My guess is that it may be more risk than Mr. Ruffin cares to take right now. This is a great way for Phil to go as it relieves him of having to risk the redevelopment of his property.

For Mr. Yitzhak it is also a wonderful opportunity:

· With last weeks implosion of the old Stardust to make room for the new Echelon Place next door to the north of the New Frontier Casino.

· With Steve Wynn building his Encore Casino and his current Wynn Casino across the Street.

· With Mr. Trump building his luxury towers directly behind the New Frontier.

· With the New Palazzo Casino kitty corner from the New Frontier.

· With the recently completed Fashion Show Mall major expansion and renovation next door to the South of the New Frontier.

This is a large parcel of property that I am sure will be developed by Mr. Tshuva to its fullest. I would think that very possibly Mr. Trump figures somewhere in this deal. Mr. Trump bought a large block of stock in the Riviera Hotel and Casino several years ago which required him to obtain approval from the Nevada State Gaming Board. It is widely know that “the Donald” has wanted to add a Las Vegas casino to his portfolio. It is also widely known that Mr. Ruffin does not do partnerships well. Mr. Tshuva is the owner of the Plaza Hotel in New York. Do you maybe think the Donald is playing real estate chess?

If this deal goes through it may very well be that the condo values and price of Trump Towers Las Vegas will go up. With a new first class casino property right next to the towers, it can’t help to improve their value.

Fare well old Las Vegas. Elvis would hardly recognize it.

For the Latest in Las Vegas real estate call Max at 702-334-2200. Or email me at:Max@MaxSellsVegas. com. Your comments and questions are welcome.

This entry was posted on Monday, March 26th, 2007 at 4:20 pm and is filed under Las Vegas real estate news. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.