American casino operator Wynn Resorts Limited has reportedly established a joint venture with commercial real estate firm Crown Acquisitions Incorporated to own and operate a new shopping mall it is building along the Las Vegas Strip.
According to a report from the Las Vegas Sun newspaper, Wynn Resorts Limited revealed that New York-based Crown Acquisitions Incorporated will hold a 49.9% stake in the new enterprise behind the coming Wynn Plaza development alongside 88,233 sq ft of retail space in the Wynn Las Vegas and Encore Wynn Las Vegas properties.
In return for its minority stake in the joint enterprise, family-owned Crown Acquisitions Incorporated has reportedly agreed to pay $472 million via two installments with a first of $292 million expected later this year followed by the remaining $180 million when the Wynn Plaza development opens at the front of the Wynn Las Vegas in the autumn of 2017.
Las Vegas-based Wynn Resorts Limited reportedly revealed that the two-story Wynn Plaza will offer 75,518 sq ft of retail space while its smaller miscellaneous Las Vegas shops as well as retail areas in the Wynn Boston Harbor, Wynn Palace Cotai and Wynn Macau have not been included in the deal with Crown Acquisitions Incorporated.
Brian Sorrentino from ROI Commercial Real Estate Incorporated told the newspaper that the move could be a way for Wynn Resorts Limited to expand its reach in the retail world while adding that similar deals had recently been done for the Grand Canal Shoppes and Fashion Show malls.
“Those other two examples seemed to be equity plays,” Sorrentino told the Las Vegas Sun. “This time it appears [Wynn Resorts Limited] is looking for strength in a retail developer to manage its projects. Of course, this is all speculation on my behalf but Crown [Acquisitions Incorporated] represents some pretty high-profile retail in other parts of the country and the world. Maybe Wynn [Resorts Limited] feels it will have a better conduit to get the kind of tenants it is looking for and it is looking for extremely high-end clientele in those shops, [which is] not the norm.”