The property is being demolished to make way for the Plaza Hotel complex, a multi-billion-dollar project. As reported on GlobeSt.com in August, a partnership of El-Ad Properties and Property & Building Ltd. completed a $1.24-billion acquisition of 34.5 acres fronting the Las Vegas Strip. The property is across from Wynn Las Vegas.
El-Ad Properties is a private real estate developer owned by Yitzhak Tshuva. El-Ad owns among other things the Plaza Hotel in New York City. Property & Building is a subsidiary of IDB Holding Corp. Ltd., which is controlled by chairman and CEO Nochi Dankner. Both companies are traded on the Tel Aviv Stock Exchange.
According to published reports, Property & Building took out a $625-million loan to pay for its share of the property. IDB Group USA and El-Ad Properties also provided $100 million each in loans, and will provide the $400 million balance from equity, according to the report.
The project is expected to cost nearly $6 billion at buildout. The property will include a casino and business center. The 1.5-million-sf development is slated to include a 3,500-room ultra-luxury hotel, condominiums, retail shops, restaurants and convention space. The plan is to break ground for the project in 2008 and have it up and running in 2012.
As reported on GlobeSt.com and from other reports, the site has had some controversy attached to it. Resort broker David Atwell, who says he initiated the transaction, sued the parties involved for his 1% fee, which in this case would be $12 million. A lawsuit is still pending.
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