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Purchase Deadline Nears for 27-Acre Strip Sale

LAS VEGAS-The buyers are on track to make $33 million in option payments that won't apply to the $475-million purchase price. It's still a good deal, says one local broker.

By Brian K. Miller | Updated on March 06, 2008

LAS VEGAS-Texas developer Christopher Milam and his Australian billionaire partner James Packer have been making monthly payments since September to maintain their option to acquire a 27-acre former water park on the Las Vegas Strip, according to a year-end report filed with the SEC last week by the seller, Archon Corp. The option must be exercised in the next 120 days.

Located immediately south of the Sahara hotel-casino, the site is one of the last large available properties on the Strip that has not recently traded. Milam and Packer plan to develop a $5-billion resort anchored by Las Vegas Tower, a 1,063-foot-high tower that would be by far the tallest in the region, albeit some 800 feet shorter than originally designed due to its proximity to the airport.

If the “carry option” payments have continued into 2008 as expected, Milam and Packer have made $61.2 million in non-refundable payments to would-be seller Archon Corp., including at least $16.2 million that won’t be applied to the $475-million purchase price, which was bumped up from $450 million last year following a delayed option payment.

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