Gone and soon to be forgotten is the fugly NASCAR Cafe (site of terrible customer service), one of Bill Bennett‘s dubious ‘enhancements’ to the Sahara during his ownership. Current owner Sam Nazarian is ripping the Sahara apart in earnest, although this story implies that two of the hotel towers will get just a light makeover. (Just getting the Arabian look off them looks like an extensive job.) Considering that Nazarian has $415 million but the total project cost has been quoted as well north of $700 million, S&G stands by its theory that The Naz is going to go all-out on redoing the public areas but hold off on up-to-date hotel rooms until he’s got SLS Las Vegas up, running and generating cash flow to convince Wall Street that it’s the real deal. No Phase I/Phase II strategy has been announced but I’m convinced that’s what we’ll see. In the meantime, the ex-Sahara has been so thoroughly denuded of all its characteristic, Las Vegas Strip-facing features (above) that we might well start using the SLS nomenclature on a permanent basis.
If you thought the foredoomed dabbling of private equity funds in overpriced companies like Caesars Entertainment, Station Casinos and anything touched by the leprous hand of Colony Capital was a bad idea, the PE wizards have an even worse one. They’d like to wager your retirement funds for real — at Nevada sports books. Bet they didn’t mention that when they were selling you on their ‘solid portfolio of assets,’ huh? A.G. Burnett, chairman of the Nevada Gaming Control Board is trying to corral this horse as it flees the barn, so wish him luck. Besides, if your money is going to be laid on sporting events, wouldn’t you prefer to do it yourself?
Setback for Gilbert: Paying $79 million for a pedestrian bridge was a bit of capex spending that Rock Gaming Caesars honchos Dan Gilbert and Gary Loveman were prepared to make (although Caesars creditors could probably find a better use for their $16 million share of that bridge). What might give them pause is having to buy back tax credits that were received in return for downtown rehab. So says the National Park Service, which also opined that the Higbee Building‘s historic character would be negatively impacted. (Ya think?) Like I said yesterday, the idea of any skywalk — let alone the crudely utilitarian one that was planned — has its street-level detractors and while the Gilbert-Loveman duo still hopes to buy the Higbee Building from Forest City Enterprises, they’re going to have to dig a little deeper into their wallets if they want their bridge.
No Surprise Here: In a near-unanimous vote of WMS Industries shareholders, the company’s takeover by Scientific Games was approved. In the end, the $26/share price wasn’t that much of a premium, the stock having hovered in the $25-$26 range for some time. Despite a bad 1Q13 report, Scientific bounced nicely, gaining 20 cents a share on the day.
The bridges across Pacific Avenue in A.C. have been disastrous for the neighborhood. As you probably know, Pacific Ave. is largely ignored and avoided by tourists. I saw similar arguments for the proposed bridge to Higbee.