Five weeks for Sahara Sam

That’s how much time Sam Nazarian has to scare up $115 million from overseas sources. If the deal isn’t done by Feb. 28, $300 million that’s currently in escrow quietly goes away. In exchange for offshore capital, Nazarian has to farm out jobs at his planned SLS Las Vegas to ‘guest workers’ who will be indentured to Stockbridge/SBE Investment Co. Smilin’ Sammy Naz has made some smart moves, such as putting a hard cap on construction costs before so much as one cinder block is laid. Standard & Poor’s projected $80 million-$85 million in annual casino revenue and a 11% ROI for the ex-Sahara last fall. Nazarian, however, can’t resist helping his SBE hotel-and-nightclub outfit to a “management fee.” However, since it’s tied to net revenue, it at least gives The Naz an incentive to do a better job than the last time around, when he screwed the Sahara into total oblivion. If there’s any nit to pick with S&P’s forecast, it’s that it relies upon rose-colored averages that are based on improved business further down the Las Vegas Strip. However, given the geographical isolation (and rough neighborhood) in which the Sahara sits, it should probably be reclassified as an “off-Strip” casino. Heck, even top-line resorts that are smack dab in the middle of the action have struggled of late. Keeping costs — and room rates — low is Nazarian’s best chance of succeeding … if he can he find some emir or pasha with 115 million clams and bunch of relatives eager to work in Las Vegas, that is.

Offshore investors are also said to be circling the Las Vegas Hotel & Casino, which Goldman Sachs has been shopping around ever since taking possession in bankruptcy court. One set of potential buyers reportedly hails from India. However, Goldman may have to underwrite the sale of its own asset, since I’m hearing that banks are not in a lending mood, at least as regards this particular problem child of the casino industry. Another rumor has George Maloof and family buying it. True, they’ll be flush with cash soon … if their sale of the Sacramento Kings goes through, and it has an elaborate obstacle course to run, potentially fraught with litigation. Besides, George has an option to buy back into the Palms Casino Resort, raising his stake to 20%. He even let the Nevada Gaming Commission stick verbal pins in him while majority owners Texas Pacific Group and Leonard Green hid in the shadows. Such masochistic devotion should probably be rewarded, even if a one-fifth ownership stake still leaves private equity firms holding all the cards. So perhaps an LVH purchase, a rebranding and institution of the “george” paytables that made Maloof a hero to video poker players could redirect locals to Paradise Road and away from the droopy-looking Palms.

Emerald city. Bay Area-based Hall Equities Group is placing a $34.4 million bet on Vegas’ recovery, having purchased three off-Strip motels for eyebrow-raising prices ($52,000 per room in one instance). All will be flagged with the Emerald Suites brand. S&G congratulates all the sellers, who must be delirious over their good fortune.

Thank you, Chuck Monster for promulgating this welcome piece of news. I’d been told about it in late autumn but was sworn to secrecy. The Cosmopolitan will belatedly — but thankfully — build out its showroom. Skipping this particular amenity was a false economy made by Deutsche Bank. (They’d have been better off if they’d mothballed the casino and finished the concert hall.) Consequently, the Cosmo’s trademark musical offerings had to be experienced in a horrid shoebox wishfully called Chelsea Ballroom, although Desperate Makeshift Arena would be closer to the truth. “It’s encouraging because they continue to invest money in” their $3.9 billion resort, CEO John Unwin said, with slightly pathetic gratitude, of his employers. But give Unwin props for talking DB into finishing what it started, thereby playing to the Cosmo’s strengths (entertainment, restaurants, nightlife) rather than its weakness. Now if they can just figure out how to market the place as something other than a high-end S&M club …