The Siegel Group, a real estate investment and management company, has acquired three parcels totaling approximately 10 acres on Las Vegas Blvd. The purchase price was $75 million, and the seller was an out of state lender who had taken back the properties from the previous owner.
Situated along Las Vegas Blvd. and Convention Center Drive, the three parcels are sandwiched in between some of the largest and well-known developments on the Las Vegas Strip, including luxury hospitality resorts Encore at Wynn to the south, the Genting Group’s $4.3-billion Resorts World directly across the street to the west, the $2.3-billion Fontainebleau to the north and the recently completed $1-billion Las Vegas Convention Center expansion to the east.
The Siegel Group owns an additional three acres that are contiguous to the three parcels which currently house Siegel Select Convention Center, a location operated under the company’s extended-stay brand and Siegel’s Bagelmania, a modern-day Jewish delicatessen and bakery. These additional parcels increase the total acreage of the development site to approximately 13 acres. All five parcels are zoned H-1 Limited Resort and Apartment, which is the most valuable and versatile designation as it allows for a variety of developments, including gaming enterprises, compatible commercial and mixed commercial and residential uses.
While the seller received multiple offers that exceeded that offered by The Siegel Group, they ultimately chose the company due to its ability to close quickly on an all-cash transaction, which was accomplished in just 45 days using exchange proceeds from a number of recent sales, the purchaser reports. With no lender or investor involvement, the company is not under any time constraints to develop the parcels and plans to take its time strategizing the right development that will maximize the use and value of what is the last great piece of land available on the north strip. This sentiment is shared by many potential developers and tenants, who began expressing interest in the development immediately after the company put the property under contract.
“We’ve been waiting years to acquire a large piece of land on the strip and have been watching this site for a long time,” said Stephen Siegel, president, The Siegel Group. “When this opportunity presented itself there was no question that we had to purchase it. This is a phenomenal property that will one day soon have a development worthy of such an irreplaceable location on the Las Vegas Strip.”