Search
 

A Vegas Oasis

LAS VEGAS-The Arabian-themed Desert Passage mall is undergoing a $50-million renovation that will de-theme and reinvigorate the retail center. Once beset with a 35% vacancy, sub-par sales per sf and below-market rents, Desert Passage's new owner, Boulevard Invest LLC, is planning an overhaul that will include new flooring, brighter interior lighting, new storefronts and a completely new interior look. New and natural lighting will illuminate the retail center that one executive says "had a sense of being night all of the time." Timed to take advantage of the ICSC convention activity, the center's owners will unveil a new name on May 21, further revealing the transformation of this 475,000-sf shopping oasis.

By Dana Dubriwny | Updated on April 25, 2006

LAS VEGAS-In one year, the 475,000-sf Desert Passage has transformed from a Moroccan-themed ghost town plagued with 35% vacancy to a true retail competitor along the 50-yard line of the Las Vegas strip. A new vision for the mall, coupled with the adjoining Aladdin Hotel & Casino’s multi-million dollar transition and re-branding into Planet Hollywood, has helped push vacancy down to 9% and rents up to $100 per sf.

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.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.