Land is worth a pretty penny when located along the Las Vegas Strip and one developer is trying to cash in on a five-acre portion bought almost ten years ago. Triple Five owns a section of land, totaling more than 5 acres next to the Peppermill restaurant and where the Riviera was formally located and now wants to sell the property. Asking price is $30 million per acre.
The amount that Triple Five is asking is less than the developer paid for the property but more than what has been asked for the last in the past after the acquisition. In the past, land would sell in the area for over $30 million an acre but now, investors don’t seem interested in paying such a premium.
According to the Las Vegas Review Journal, brokers have stated that if the land were to sell at that price it would have to be for a project such as a casino resort or a condo tower to be able to make a profit based on the purchase price. However, many developers are unable to receive the amount of funding that Triple Five is asking for.
When discussing the price point with several brokers, the Las Vegas Review Journal found mixed results. One broker stated that maybe $5 million would be an acceptable price for one acre while another said maybe $10 million. However, apparently, all were in agreement that the property would not fetch the developer’s asking price.
The section of land may bring about interest due to the location and surrounding businesses. The Las Vegas Convention and Visitors Authority plans to create an expansion of the convention center that will cost $1.4 billion and will be located next to the parcel of land. Across the street is where the Resorts World Las Vegas mega-resort will be located.
The parcel was purchased by Triple Five in 2007 for $180 million. By 2014, the company had placed a sign out on the property asking for $16 million an acre. A sign still remains but has been changed to show the $30 million an acre asking price.