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MGM Closes North Strip Land Acquisition

LAS VEGAS-The biggest chunk of the deal, 25.5 acres for $444 million or $17.4 million per acre, closed last week, ensuring the public company enough land to follow up its $7.4-billion Project CityCenter with another integrated resort.

By Brian K. Miller | Updated on May 20, 2007

LAS VEGAS-MGM Mirage last week completed its 33.5-acre land acquisition at the north end of the Strip by paying $444 million for 25.5 acres at the corner of Las Vegas Boulevard and Sahara Ave. The smaller part of the deal, eight acres at Circus Circus Drive and the Strip for a total of $131 million, closed earlier this month.

Brokered by Michael Mixer and Alexander Rodrigo, executives of the local Colliers International office, both deals involved 1031 exchange money from MGM’s sale of its Primm, NV portfolio and the recapitalization of its holdings in Jean, NV. Mixer and Rodrigo say the combined $576 million dollar acquisition represents the largest pure land transaction on Las Vegas Boulevard.

The two parcels connect to each other as well as MGM’s existing assets there, which include the Circus Circus casino resort, giving the company 102 acres to master plan. When MGM put the properties under contract last month, company CFO Jim Murren intimated that the company will take on a partner with which it will design an integrated resort, adding that he already had received “significant interest” from third parties.

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