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30 Days Left on $475M Strip Purchase Option

LAS VEGAS-A Texas developer and his equity partners have five weeks to exercise a purchase option for 27 acres on the Las Vegas Strip or lose some $65 million in non-refundable option payments.

By Brian. K. Miller | Updated on May 26, 2008

LAS VEGAS- Texas developer Christopher Milam has just over a month to exercise a $475-million purchase option for 27 acres on the Las Vegas Strip or lose some $75 million in non-refundable option payments. An SEC filing by seller Archon Corp. shows that Milam kept the option alive by continuing to make monthly $2.3-million payments through the first quarter of the year.

Assuming Milam also made the $2.9-million payments required for April and May, he and his equity partners have made approximately $70 million of non-refundable payments to Archon Corp. — including more than $24 million that will not be applied to the purchase price, which jumped from $450 million last year following a missed option payment.

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 tied up the property in June 2006. In May 2007, Australian billionaire James Packer invested $22.5 million to gain a 37.5% interest in the ownership entity, which had initially had plans for a multi-billion-dollar, 5,000-room casino resort on the property that would include the tallest building in the Western Hemisphere at 1,888 feet.

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