Resort real estate, which was hit hard by the recession, has had some good news so far this year. Casinos and theme parks have major plans to expand their offerings and real estate footprints.
Casinos cash in
With the economy chugging along steadily, casino properties are prime examples of success stories of mixed-use assets.
These resorts are much more than simply large facilities for blackjack and slot machines. Retail and restaurants are huge components of these assets. For example, Forum Shops at Caesars (NASDAQ:CZR), attached to the Caesars Palace resort, in Las Vegas, is the fifth-best performing asset in mall giant Simon Property Groups' (NYSE:SPG) portfolio, withsales per square footclocking in at $1,616, and other casino-resort retail areas attached to casinos generally perform strongly as well. Additionally, Las Vegas casinos are arguably the largest locale in one area to house celebrity chefs, from Bobby Flay to Todd English.
Then of course, on top of these casinos, eateries and shops are hotel rooms and depending on the development, for-sale condominiums, making Las Vegas a true 24-hour city with several commercial real estate components.
And, the money is following in step. Back in the spring, two large resort-casino operators went public.MGM Growth Properties(NYSE:MGP) had an IPO that raised just over $1 billion, the largest public offering since October. It's now buying out its partner in theBorgata Hotel Casino & Spain Atlantic City for $600 million. Meanwhile,Red Rock Resorts(Pending:RRR) raised just more than $531 million after going public. It's now in the process of purchasing the famousPalms Casino Resortin Las Vegas for just under $313 million.
But this isn't just a Vegas phenomenon. A Sands Casino Resort opened in former steel town Bethlehem, Pennsylvania, in 2009, followed by a 302-room hotel and a 133,000-square-foot outlet shopping center. Additionally, celebrity chef Emeril Lagasse has several restaurants in the development.
Author:Marilyn Cortez Phone: 956-587-1633 Dated: June 29th 2016 Views: 284 About Marilyn: Always ahead of the highly competitive RGV real estate market, Marilyn Cortez is a Spanish speaking ...
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Always ahead of the highly competitive RGV real estate market, Marilyn Cortez is a Spanish speaking native of the Rio Grande Valley. Born and raised in Mission, Marilyn is committed to her clients, and is recognized as a Top Agent in the Greater McAllen Real Estate area, and within Keller Williams Realty. Since the start of her Real Estate career in 2007, she has sold over 40 million dollars of real estate. Known by her fellow real estate agents to be hardworking, honest, dedicated and motivated, Marilyn is knowledgeable in all areas of Real Estate and has built her business on results, with more than 70% of her clients being repeat clients.