Search
 

Starwood Takes Piece of Palazzo Condos

LAS VEGAS-Las Vegas Sands Corp. says it has cut a deal with the hotelier that will turn the skinny 50-story condo tower rising on the Strip in front of the Palazzo into the St. Regis Residences.

By Brian K. Miller | Updated on September 04, 2008

LAS VEGAS-Las Vegas Sands Corp. said Thursday that the skinny 50-story condo tower rising at the heart of the Las Vegas Strip is now the St. Regis Residences thanks to an agreement with the owner of the brand, Starwood Hotels & Resorts Worldwide. The 398-unit luxury residential project is under construction between Las Vegas Sands’ Palazzo and Venetian resorts and slated to open in March 2010. The financial details of the relationship have not yet been revealed by either party.

The condo tower is rising on land owned by Steven Johnson, a low-key investor-developer from Scottsdale, AZ, and James Peterson of Albuquerque. The duo acquired the 0.64-acre former restaurant site in April 2003 for $32.5 million, which equates to more than $50 million per acre, by far the highest ever paid for land on the Las Vegas Strip. Johnson told GlobeSt.com last year that he and Peterson own the first two floors of the condo building, one of which will be leased to Walgreen’s, and that Las Vegas Sands controls the air rights above the first two floors via lease and sale agreements.

Earlier this year, Las Vegas Sands said it would cost $600 million to develop the condominium tower, $135 million more than it thought in April 2007. At that time, the company said it expected to spend $465 million developing the units but stood to make as much as $1.94 billion selling them off. If achieved, it would equate to an average sales price of $2,000 per sf, making it the priciest residential offering ever on the Las Vegas Strip.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.