Silver City Plaza
Background
Silver City Plaza is a neighborhood center located directly along the famed Las Vegas Strip, on the Northeast corner of Las Vegas Boulevard and Convention Center Drive. The center is anchored by Ross Dress for Less and shadow anchored by Walgreens, with supporting tenants Denny's and 7-Eleven. The property is located on the site of former Silver City Casino, which closed in 1999, and was demolished in 2004.
Challenge
Silver City Plaza was a pre-sale transaction that our team brought to market concurrent with the property's construction. A complex transaction, the development of the project was ongoing from the marketing period through close of escrow. Furthermore, the property was priced in excess of $1,000 per square foot, with one of the tenants paying over $100 per square-foot per month in rent. This posed significant challenges both in terms of identifying buyers that would be comfortable with this cost per square foot and in satisfying the buyers/lenders requirements for justifiable lease comparables. To further add to the complexity of the deal, at the time of the sale, the adjoining property owners were also threatening litigation procedures with the ownership.
Solution
Through an expansive marketing strategy that targeted institutional buyers, private California buyers, Las Vegas-based investors, and brokers, the REZA team's dealmakers were able to solicit an exchange buyer that was comfortable with the high price per square foot of the property. Under the advisory of our team, the information provided during the due diligence process served to help the buyer understand and work through the possible litigation issues with the seller and the neighboring parcel owners and also justify the rental structures in place for the property.