Offer Deadline Nears for 1,000-Unit Project

LAS VEGAS-Offers are due June 12 for Vegas Grand, a 20-acre off-Strip development that includes a 212-unit residential building that is nearing completion and entitlements for an additional 782 units on the remaining 16 acres, according to CB Richard Ellis. There is no overall asking price, but approximately $107 million will have been spent on the first building and infrastructure including streets and utilities for the entire development, sources familiar with the project tell GlobeSt.com.

The development site is located at East Flamingo Road and Swenson Street, adjacent to the University of Nevada-Las Vegas and 1.5 miles from both the Las Vegas Strip and the Las Vegas Convention Center. The seller is Lehman Bros., which gained control of the project in October at auction for $55 million after developer Del American defaulted on its development loan, according to county property records. The outstanding balance on the loan stood at between $90 million and $100 million, one local source tells GlobeSt.com.

Earlier this year, Lehman retained the local office of CB Richard Ellis to liquidate the asset, which CBRE began marketing in April. The marketing brochure does not list an offering price for the building nearing completion, Bella Venezia I, but says $72 million will have been spent to complete it. The units average 1,290 sf and the parking ratio is approximately two per unit. The offer price for remaining land and entitlements is $44 million ($2.75 million per acre), a big discount to its year-old appraised value of $72.5 million ($4.55 million per acre) and approximately $10 million more than was spent to acquire it and prepare it for development.