After several slashed prices and a mild bidding war in 2003, the property was purchased by New York-based developer David Edelstein's TriStar Capital (formerly Sutton East Corp.), with business partner and real estate firm RFR Holding. Collectively, the group is known as Boulevard Invest LLC. Within months of the retail buy, the Aladdin Hotel and Casino declared bankruptcy and relinquished its assets for $635 million to a new owner, Planet Hollywood.

Edelstein says the mall came with much more than 95,000 sf of vacant space. For $204.5 million, Boulevard purchased a stained reputation, poor space configurations and several disgruntled tenants. "It had the reputation of being the poor child of the three big malls," Edelstein says.

In one of the most obvious obstacles, designers needed to break up the center's circular walkway, which has been compared to as a doughnut with no beginning or end. The solution was to divide the mall into six to eight themed zones, each with its own mood and set of stores. The mall has also been in dire need of a facelift to attract visitor traffic, and requires further collaboration between the retail and casino portion of the development.

"The conventional wisdom is that the original architects of the Desert Passage were not as experienced with the integration of hotel and casino uses," says John Restrepo, principal of Restrepo Consulting Group LLC. "You want to make sure that the center is pulling from casino so you have flow through between the casino and retail portions."

Hal Rotham, University of Nevada history professor and author of Neon Metropolis, How Las Vegas Started the Twenty-First Century, agrees and believes that the concept was beset from the start. "What was wrong was that it perverted the Las Vegas experience," he says. "They gave the middle class a middle class experience; this was just never special enough to deliver."

Boulevard has dished out $50 million on interior and exterior renovations to change that perception. The heavily themed Moroccan décor has been whitewashed and dulled to make way for a look similar to that of Planet Hollywood. Edelstein says the mall has been in discussions with the casino owner to find design programs that complement each use of the property. The combined efforts and redesign is expected to bring Desert Passage owners and its tenants a hefty return.

Though Edelstein says Desert Passage is not in direct competition with the Forum Shops at Caesars or the Grand Canal Shoppes at the Venetian--two centers that average yearly sales of at least $1,000 per sf--his optimistic goals say otherwise. "By the end of 2005, we will be a $1,000 per sf mall; we have the traffic, now all we need to do is create the synergy."

Robert K. Futterman & Associates LLC is the leasing agent of the property. A New York City-based company, it served as the exclusive retail consultant for the $1.7 billion AOL Time Warner Center near New York's Central Park. The company announced on Monday that gift shop Arelni LLC's Vegas the Store committed to a 2,000-sf foot lease in the center. Neighboring retailers include: Galleria Arte Fino, Prana Lounge at Crustacean, bebe, Ben & Jerry's, Fossil, Chico's and Havana Republic.

The group also signed Urban Outfitters to a 12,000-sf lease, which will serve as an anchor for the center. Bebe Sport, Coffee Bean and Tea Leaf, Modern Watch and Painted With Oil also signed onto the mall.

Last September, Planet Hollywood launched an ambitious $500 million plan to resurrect the $1.4 billion resort, and has plans to reflag the casino as Planet Hollywood Hotel-Casino. And in April, Planet Hollywood Resort & Casino announced a joint venture with Westgate Resorts to build a 52-story luxury vacation ownership tower directly connected to its property. The $400 million development will include over 800 two-bedroom suites, bringing the total to over 4,000 rooms.

Despite all the work put into the project, critics remain at the sidelines wondering how this will all play out. The Planet Hollywood chain is no stranger to the fate of the Aladdin owners--it has sought bankruptcy protection twice itself. Rotham fears that the Planet Hollywood name will do little to improve sales at Dessert Passage. "It's just one declining brand buying another, but only time will tell."

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