BluefoxToday blog : Stratosphere sale about to close

Stratosphere sale about to close

 

Famous corporate raider Carl Icahn is one step closer to selling a company under his control, the American Stratosphere CasinoCasino & Entertainment Properties, as the Nevada Gaming Control Board recommends the transaction for approval. The buyer is Whitehall Street Real Estate Funds, an affiliate of the Wall Street powerhouse Goldman Sachs. The sale is set to close in February.

American Casino operates locally the Stratosphere and two Arizona Charlie's gaming houses in the suburbs and also the Aquarius at the southern tip of Nevada in Laughlin.

For the near term, Whitehall Street plans to spend about $54 million in upgrades and additions in the acquired properties. In the long term it may have much bigger ideas. Stratosphere comes with a chunk of undeveloped land and it could be used for a high-rise condominium tower, which now is the hot trend in Las Vegas. Stratosphere sits at the northern end of the Strip, the rapidly growing stretch that has several mega resorts under construction, including the Encore by Wynn Resorts, Echelon Place by Boyd Gaming and the Fontainebleau hotel, casino and condominiums. To make the most of that, it's only a matter of time when Whitehall Street will announce a new project for the property.

Whitehall Street is gradually becoming an important player on the Vegas scene because it already owns a 40% share of the Las Vegas Hilton. That property also includes quite a bit of land that can be developed many different ways, among them more condominiums. 

Photo by Eva and Daniel

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Provided by: 

Esko Kiuru
Mortgage, real estate and apartment industry analyst 

www.BluefoxToday.com - syndicated mortgage, housing and property management blog

eskokiuru@gmail.com
My cell: 702-499-1006

Comment balloon 8 commentsEsko Kiuru • January 14 2008 10:17PM

Comments

thats big news!
Posted by Steve Harless (Love Local Real Estate) almost 11 years ago

Steve,

Thanks for stopping by.

Posted by Esko Kiuru almost 11 years ago
Esko - Must be great living out in Vegas. I bet you are never bored!
Posted by Bill Gassett, Metrowest Massachusetts Real Estate (RE/MAX Executive Realty) almost 11 years ago

Esko, how often does an opportunity to by a casino come along?  I would have to think that this would be a rare occurrence.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) almost 11 years ago

Bill,

Residential and commercial real estate in Vegas is usually pretty active, although residential right now is struggling.

Posted by Esko Kiuru almost 11 years ago

George,

Actually casino sales happen quite frequently, equally for large and small properties. Two years ago Harrahs bought out Caesars Entertainment, for instance.

Posted by Esko Kiuru almost 11 years ago

Esko:

That is very interesting. I would have bought it myself but I misplaced my wallet. Wow! How would you like to have that kind of cash or even credit. ha.

Posted by Alan Kirkpatrick, Alan in Austin (Austin Texas Homes) almost 11 years ago

Alan,

When you get your finances together, join the fray.

Posted by Esko Kiuru almost 11 years ago

Participate