According to David Edelstein, co-owner of the Desert Passage, the mall was more of a "deserted passage" when his company and RFR Holding, collectively known as Boulevard Invest LLC, made the $200-million-plus purchase in 2004. The group acquired the Arabian-clad retail center from Chicago-based Trizec Properties. Within months of the retail buy, the adjacent hotel and casino declared bankruptcy and relinquished its assets for $635 million to a new owner, Planet Hollywood.

At that time, the mall was plagued with 95,000 sf of vacant space, poor space configurations and several disgruntled tenants. With sales averaging $400-plus per sf, Desert Passage was little competition for Forum Shops at Caesars or the Grand Canal Shoppes at the Venetian--two centers that average yearly sales of $1,000 per sf.

To de-theme the heavy Moroccan décor, the ownership set in place a $50-million renovation and retained architectural firms Gensler of Nevada and the locally based Friedmutter Group, in conjunction with construction group Flagship Construction Co. Gensler is tasked to redesign the center's interior and Friedmutter Group will be in charge of the exterior makeover, Edelstien tells GSR.

The goal of the interior work, says Edelstein, is to make it more user friendly. Planned enhancements include new flooring, brighter interior lighting, new storefronts and a completely new interior look. The 170,000 sf of concrete cobblestone flooring intended to mimic that of a Moroccan village is being replaced by more modern and functional materials including smooth terrazzo and wood. New and natural lighting will illuminate the retail center that Edelstein says "had a sense of being night all of the time." The renovation also includes the addition of an interactive directional system to help shoppers navigate the facility.

The exterior renovations include adding people movers for better access into the mall. Other enhancements include a backlit sidewalk water feature and LED video offering continuous streaming imagery. Additionally, the mall's entrances and existing retail locations have new floor-to-ceiling glass vestibule doors and storefronts. The exterior renovations will be completed by the fourth quarter of 2006 and the interior improvements will be completed in phases through the second quarter of 2007.

The general contractor for the project, Flagship Construction Co., is currently working on the first phase of the exterior portion of the project, which focuses on the center's north façade area. Related Cos., the manager of the property, is overseeing the makeover on behalf of Boulevard Invest.

Today, the sales average is $675 per sf, a price that Edlestein believes will increase to $800 per sf once renovations are complete. He says Desert Passage is well on its way toward the goal of becoming a $1,000-sales-per-sf mall. "We're rocking," he tells GSR.

Desert Passage has 170 specialty stores, 15 restaurants and live entertainment. On May 21, during the ICSC convention, Boulevard plans to announce the new name for the retail center.

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