Search
 

Broker Sues in $1.2B New Frontier Deal

LAS VEGAS-David Atwell, who says he helped initiate the record-breaking transaction, also says there's an outstanding matter of an unpaid broker's fee.

By Brian K. Miller | Updated on July 31, 2007

LAS VEGAS-Local real estate broker David Atwell is suing El-Ad Properties of New York City and Fidelity National Title of Nevada for non-payment of a $12-million buyer’s broker fee to which he says he is entitled. Atwell, owner of Resort Properties of America, says the would-be fee is for initiating El-Ad’s $1.2-billion acquisition of the New Frontier hotel-casino property adjacent to Wynn Las Vegas on the Las Vegas Strip. El-Ad tells GlobeSt.com through a spokesperson that it is confident Atwell is not entitled to a commission.

El-Ad, controlled by Israeli billionaire Yitzhak Tshuva, agreed to buy the 34.5-acre site in May for approximately $35 million per acre, which at the time was the highest price ever agreed to for land on the Las Vegas Strip. El-Ad has since announced a partner, Tel Aviv-based IDB Development Corp., and plans for a multibillion redevelopment of the site. The hotel-casino on the site was shuttered earlier this month in advance of the closing of the sale, which is expected to occur before the end of August.

The lawsuit was filed in Clark County district court on June 26 after El-Ad allegedly refused to pay the fee. The litigation has since been moved to federal court. Atwell states in the lawsuit that on or about June 1, 2006, he was contacted by El-Ad’s director of development Victor Siguora and its president Mike Naftali, to discuss representation for a possible project in Las Vegas that would be modeled after El-Ad’s Plaza Hotel in New York City.

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.