Dick Corp. served as the frame contractor for the Venetian resort, performing all concrete foundation and structure work for the $2-billion complex. It also served as a prime contractor for the Atlantis resort in the Bahamas, constructing among other things the bridge that links the two towers. The bridge was the inspiration for the four bridges that will connect the two 36-story towers anchoring Pinnacle Las Vegas.
The developer and landowner is the Falcon Group. The partnership includes the Falconi Group, Praxis Resources Inc. and Las Vegas-based Elysium Enterprises. Falconi Group and Praxis are real estate development companies based in Pennsylvania. Falconi is led by Angelo Falconi, who owns shopping malls, auto dealerships and a piece of the Pittsburgh Penguins. Elysium Enterprises is led by Mike Bellon, a locally based entrepreneur and real estate developer who made his mark buying, developing and selling auto dealerships.
Site work for Pinnacle Las Vegas got under way in July with the razing of two buildings on the 12-acre property at the intersection of West Tropicana Avenue and Cameron Street. The developers are currently working off of a $50-million predevelopment bridge loan from New York City-based Berkshire Capital. The pre-development loan will be paid off by the construction loan, which is expected to come in at around $550 million. Gross revenue from unit sales is expected to top $900 million.
The average sale price for units in the towers is in the mid-to-high $700-per-sf range, which is below the price of most of the product on the Strip. The lower price is due in large part to the developers' low-cost basis in the land, which Falconi has owned for 20 years. The two-level penthouses should sell for between $1,200 and $1,500 per sf, and the bridge units for more than that.
Rise Realty is the exclusive broker for the project and full 3% fees are being paid to cooperating brokers. Several months back, about 40% of the units had been presold. Today, the developer is in a sort of silent period as the group nears the presale hurdle set by the construction lender, which is likely somewhere between 60% and 70%.
The towers were designed by Jon Sparer of Youngblood Wucherer Sparer Architects Ltd. Project amenities are slated to include a three-acre "wet deck" on the sixth floor with a hibiscus-shaped pool; putting green; a pet-friendly area; a one-quarter-mile jogging track; and a "dive-in" movie theater. The development also will include two 7,500-sf, full-service restaurants; multiple lounges; a fully equipped fitness center; a full-service spa; and 50,000 sf of street-level retail below 40,000 sf of executive office space. In addition to the towers, there will be unique two-level condominiums on the sky bridges and 31 townhomes surrounding the pool deck.
Publicly held Interstate Hotels & Resorts of Arlington, VA, has been tapped to manage the resort. Absentee owners can choose to have their units rented out on a short-term basis through an in-house turn-key guest residency program.
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