Downtown Vegas Redevelopment
The Sponsor is under contract to acquire two additional properties in the Downtown Las Vegas Arts District for $1,900,000. The property located at 1201 South Main Street is a free standing 10,784 SF retail building and the adjacent property located at 1208 South Casino Center Blvd. is a 7,000 SF parking lot. The Sponsor has secured financing in the amount of $1,275,000 from Pender Capital. The loan is interest only with the principal balance due at the end of twelve (12) months.
Within the first 12 months of ownership, Sponsor intends to lease 1201 South Main Street to 100% occupancy. Sponsor has already received tenant interest in 50% of the space at the property, and has received expressions of interest from tenants including a local multi-location restaurant and bar operator, a salon, a craft brewery, a coffee shop, a dance studio, a cold press juice company, and multiple clothing stores. The property also benefits from attractive floor plans ranging from 720 SF to 4,160 and larger, that can accommodate a wide range of tenant demands.
In October 2013, Main Street Investments acquired 1209 South Main Street which is a single tenant retail building directly next to 1201 South Main Street. The property was successfully renovated and a national tenant, Buffalo Exchange, signed a long-term 10-year NNN lease. The investment generated an estimated increase in property value of more than 200% in less than 15 months.
1201 South Main Street Property Rendering
1201 South Main Street – Preliminary Floor Plan
1209 South Main Street – Buffalo Exchange
MARKET – DEMOGRAPHICS
The Property benefits from a dense, highly educated and eclectic population base. The 3-mile population density is 88,238, with a median household income of $35,488. A number of new projects have come to fruition through Zappos.com CEO Tony Hsieh’s Downtown Project’s real estate development arm, RCG, including the Inspire Theater, Container Park, Gold Spike, and Carson Hotel (mixed-use development). Currently, all the residential buildings in the area are above 90% occupancy, and more housing projects are planned.
Downtown Las Vegas is the central business district of Las Vegas, Nevada; it features a number of hotels, business highrises, cultural centers, historical buildings, and government institutions, as well as residential and retail developments. It is the original gambling district of Las Vegas, and still incorporates downtown gaming.
In 2012 several new downtown projects were completed. The Smith Center for the Performing Arts, the new Mob Museum and a new City Hall building opened. The DISCOVERY Children’s Museum opened next door to The Smith Center in 2013.
Zappos.com significantly renovated and moved into the old Las Vegas City Hall in late 2013, which now houses its corporate headquarters. Zappos.com CEO Tony Hsieh has taken a personal, as well as a professional, interest in the urban area and is contributing $350 million of his personal wealth toward a multifaceted revitalization effort called the Downtown Project.
Las Vegas Review Journal Articles:
Video of Tony Hsieh talking about the Downtown Las Vegas development projects.
The map below shows the distance between the subject properties and Tony Hsieh’s area of development.