URBAN UPDATE

As a community of Real Estate professionals I’m constantly amazed at the number of us who have no clue what’s going on downtown. I’m making it my mission to answer the questions most in our field don’t even know to ask, so here goes. For those of you who are “in the know” here’s a refresher, and for those who haven’t yet ventured into the new downtown, read on.

Lady Luck Hotel & Casino
“The Lady Luck Hotel & Casino will soon usher in a new era of luxury and modern glamour in Las Vegas’ downtown district,” according to the Web site for the CIM Group who now owns and controls the destiny of this seemingly abandoned property. The CIM Group is responsible for the success of multiple projects, primarily in Southern California, one of the most notable being the Kodak Theatre in Hollywood where the Academy Awards are held.

The hotel and casino—as well as the neighboring block—will begin construction in 2009. The two existing towers of the hotel will stay, but will undergo some pretty major changes. Plans for renovation include creating 631 hotel rooms, a 50,000-square-foot casino and 22,000 square feet of retail space. “Through this renovation the Lady Luck will reposition itself as an upscale boutique hotel with a destination pool, spa and other amenities not found in the downtown area,” according to CIM.

In addition to the hotel itself, the transformation of the Lady Luck will spill over into the surrounding block and morph Third Street into a true destination. The CIM group is in an exclusive negotiating agreement with the city of Las Vegas for the redevelopment of the post office block as well. Third Street between Ogden and Stewart—now home to Triple George, Sidebar, Celebrity, and Hogs & Heifers—will explode into a major retail destination downtown. Think Third Street Promenade in Santa Monica (also a CIM project) and you get an idea of what the future will bring. The historic post office building, which the city now owns, will be renovated and become the home of a new Mob Museum promising to attract locals and tourists alike.

Project Live/Work
A project by Forest City Enterprises and Mitchell Holdings, this five-block area in the office district has a deadline with the city to reach a development agreement by June of this year. This mixed-use project will be home to the RTC’s bus terminal (now located on the post office block slated for redevelopment) as well as the new City Hall. This would mean that three of the five blocks would be left for private development and become home to retail, office and residential space. Currently negotiations are underway for a potential land swap with the city for parcel P/Q in Union Park. Construction on this project could be as early as 2009.

The Bulldog Site
This one-acre parcel on the southeast corner of Las Vegas Boulevard and Clark is currently under an exclusive negotiating agreement with the city of Las Vegas (who now owns the site) and City Mark (the developers of Juhl). This would be a residential project, possibly offering rental options above a retailer, preferably a grocer. The challenge with this site is the size of the lot and the difficulty with parking. Stay tuned to see what comes of this site.

Gold Spike/Travel Inn
The two declining properties on Ogden directly east of Las Vegas Boulevard are getting a new lease on life. Both properties were acquired in the last six months by two separate owners. These owners have now come together and presented plans to the city to completely renovate the property with a high-end, very exclusive look and feel.

The ACE Downtown Connector
As for public transportation progress in Las Vegas, CAT, MAX and The Deuce have all been a success, but when it comes to an environmentally friendly addition connecting and transporting people to and within our urban core, there’s been a missing piece of the puzzle. Can I just say, it’s about time! The Regional Transportation Commission has started construction on the first phase of the ACE rapid transit system. The ACE Downtown Connector will run along Grand Central Parkway (alongside Union Park, World Market Center, the Molasky Corporate Center and the IRS building) and down Casino Center Boulevard, making its way to the Sahara Monorail station, the Las Vegas Convention Center and eventually McCarran airport. Word on the street is that within the downtown area the system will be free, and the trip to the airport will be about $2. Total cost for this project is estimated at $75 million and it is scheduled to be operational in 2009. For more information and maps go to www.rtcnv.com.

Union Park
Last, but definitely not least, is Union Park. The “predicted core of the city” is destined to become the place to live, work and play. The city of Las Vegas has a lot riding on this project, and so far the future looks bright and progress can already be seen. The 61-acre, $6 billion project will be anchored by two key tenants: the Lou Ruvo Brain Institute and the Smith Center for the Performing Arts.

The Frank Gehry-designed Lou Ruvo Brain Institute is currently under construction and should be completed later this year. The project will be a world-class medical research and treatment facility dedicated to brain degenerative diseases. The design is architecturally fascinating, and more information is available in our article on Larry Ruvo (May, 2007).

The Smith Center for the Performing Arts will become home to the Nevada Ballet, the Las Vegas Philharmonic, Broadway shows and other traveling productions. Every true city should have a cultural center such as this and it can’t come soon enough. Construction will commence in 2009 and be completed by 2011. For more information about this project, please visit www.thesmithcenter.com.

At final count, here’s how the numbers for Union Park stack up:

• 3200 Residential Units
• This will include high-rise, mid-rise, lofts, apartments and brownstones.
• 475,000 Square Feet of Retail
• 1,908,000 Square Feet of Office/Medical
• 2,290,000 Square Feet in the World Jewelry Center
• A 50-story tower and free-trade zone.
• Two Non-Gaming Hotels
• One Hotel/Casino Property (Will be a gaming company that does not currently have a presence in Las Vegas)
• Symphony Park

To check it all out go to www.unionparkvegas.com.

So, not unlike Vegas itself, downtown is an oasis full of life and progress. We are at a pivotal point, full of opportunity for the visionaries who are willing to take the leap and invest in the new downtown.

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