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REI Group Takes Reins as Preferred Arena Developer

LAS VEGAS-The Bloomfield Hills, MI-based developer plans to develop the sports facility as part of an $8.5-billion, 85-acre mixed-use development within the city limits of Las Vegas.

By Brian K. Miller | Updated on July 25, 2007

LAS VEGAS-Real Estate Interests Group has been selected as the preferred developer of a major league sports arena in Las Vegas proper. The Bloomfield Hills, MI-based developer plans to incorporate the sports facility into an $8.5-billion, 85-acre mixed-use development on the West side of Main Street. The city council approved the overall development plan last month but had not decided which of six applicants would win approval to develop the arena. REI president John Weaver had said previously that without the arena his overall project would fall apart.

“We believe our site location, the size and scope of the arena itself, as well the fact that the arena is only one component our overall mixed-use development, were all determining factors in why we were selected,” Weaver says. “This combined with our ability to refine our financial structure to meet the criteria set forth by the professional leagues as we prepare to negotiate a lease will make Las Vegas an overwhelmingly attractive site for a major league tenant.”

REI has the property under contract to close in the third quarter of this year. Weaver told GlobeSt.com last month that he has secured senior debt financing and expects to start moving dirt next year for the first phase of the massive project. The cost of the land has not been released. The estimated construction budget is $8.5 billion. The project’s total value upon completion is estimated at $9.5 billion. “We plan on breaking ground in the third quarter of 2008 upon receipt of all necessary permits and design approvals,” he said.

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