Fontainebleau Acquires 12 Acres Near Las Vegas Strip for $113 Million

Fontainebleau Acquires 12 Acres Near Las Vegas Strip for $113 Million

Fontainebleau Development, the real estate company behind the iconic Fontainebleau Miami Beach hotel, has made a significant land acquisition in Las Vegas. The company has purchased 12 acres near the Las Vegas Strip for $113 million. The property is located at the northwest corner of Harmon Avenue and Koval Lane, directly across from the Las Vegas Convention Center. It is a prime location for a large-scale development project, with proximity to the Strip’s hotels, casinos, and entertainment venues. Fontainebleau plans to develop a mixed-use project on the site, which will include a luxury hotel, residential units, and retail space. The project is expected to cost in excess of $2 billion and will take several years to complete. The acquisition marks Fontainebleau’s entry into the Las Vegas market, which is a major destination for tourism and entertainment. The company has a strong track record of developing and operating luxury hotels and resorts, and it is expected to bring its expertise to the Las Vegas project. The development is expected to have a significant economic impact on Las Vegas. It will create thousands of construction jobs and permanent jobs for the hospitality industry. It will also add to the city’s tax base and help to attract new visitors. The Las Vegas Strip has seen significant development activity in recent years, with new resorts, casinos, and entertainment venues being built. Fontainebleau’s project is expected to be one of the most ambitious and significant developments on the Strip in recent memory.Fontainebleau Development Acquires Land for Future Expansion

Fontainebleau Development Acquires Land for Future Expansion

Fontainebleau Development is making a significant investment in Las Vegas by acquiring 5 acres of land near the Fontainebleau Las Vegas hotel-casino. The deal, which is valued at $112.5 million, will allow the developer to expand its presence in the city. The current deal represents $22.5 million per acre for the land, which is located east of Las Vegas Boulevard and south of the Fontainebleau Las Vegas. The Las Vegas Convention & Visitors Authority (LVCVA) will vote on Tuesday on whether to sell the land to Fontainebleau Development. The land was previously part of the 10-acre site where the Riviera hotel and casino once stood. The LVCVA purchased the entire 26-acre site in 2015 and subsequently demolished the Riviera. In addition to Fontainebleau Development, another joint venture is also a party to the land deal. 65SLVB, a partnership between Brett Torino of Las Vegas and Paul Kanavos of New York, plans to acquire 10 acres of the site for $125 million. Fontainebleau Development aims to purchase half of the “Back Five Acres” from 65SLVB. The land currently functions as a parking lot and neither Fontainebleau Development nor 65SLVB has disclosed their specific plans for the property. The LVCVA does require that any development on the site complement projects on the north Strip, including luxury condos.

Fontainebleau Las Vegas’s Promise and Challenges

The opening of Fontainebleau Las Vegas in December 2022 marked the culmination of 18 years of delays and setbacks. The 3,644-room resort was 75% complete when the economy collapsed in 2009, stalling the project. Jeffrey Soffer, CEO of Fontainebleau Development, has expressed confidence in the Las Vegas market. “This acquisition, which is strategically located for future growth, underscores our confidence in the Las Vegas market,” Soffer said. Despite its recent opening, Fontainebleau Las Vegas has faced some challenges, including high staff turnover and questions about its feasibility. In response, the resort hired Maurice Wooden, a veteran hospitality and gaming executive, as its new president in February 2023.Fontainebleau Development, in partnership with Witkoff Group and New Valley LLC, has acquired a 12-acre parcel of land near the Las Vegas Strip for $113 million. The property, located at 1650 Las Vegas Boulevard South, was previously owned by Tipping Point Development and was once the site of the now-demolished New Frontier Hotel and Casino. Fontainebleau plans to develop the site into a mixed-use project that will include a luxury hotel, residential units, and retail space. The project is expected to cost over $3 billion and create thousands of jobs. “This acquisition is a major milestone for our company and for the Las Vegas Strip,” said Jeff Soffer, chairman and CEO of Fontainebleau Development. “We are excited to be a part of the redevelopment of this iconic destination and to bring our vision for a world-class resort to life.” Fontainebleau’s plans for the site include a 3,889-room hotel with multiple pools, restaurants, and bars. The residential component of the project will consist of over 1,000 luxury apartments and condominiums. The retail space will include over 250,000 square feet of high-end shops and restaurants. Construction on the project is expected to begin in 2023 and be completed by 2026. “We believe that this project will be a game-changer for the Las Vegas Strip,” said Andrew Witkoff, chairman and CEO of Witkoff Group. “Fontainebleau’s reputation for excellence in hospitality and development is unmatched, and we are confident that this project will be a huge success.”