Showcase Mall Sold

Over the past year developer Barry Fieldman has been selling off pieces of his Showcase Mall property near MGM Grand to New York real estate investor Eli Gindi and Jordache jeans founders the Nakash family.

The final plot was sold last week for almost $83 million, completing the $370 million buyout of the property.

Showcase Mall is known for a Coca-Cola store complete with giant Coke bottle, along with an M&M's World property. If you're dying to see a movie on the Strip, there's also a United Artists theater.

The sale of Showcase Mall has started speculation wondering if anything will be done with the property. I'm guessing not really. In spite of the relative kitsch of the property, it seems to be fairly busy most of the time. I can't see a serious real estate investor doing anything to jeopardize that.

Crystals Expansion likely at Harmon Site

Jim Murren - speaking on the most recent MGM Resorts International earnings conference call gave some thoughts about what the never-opened Harmon Hotel land could become:

"For those of you who are out here, or are going visit soon you'll note, which is happy news for us - that Bobby Baldwin has finished deconstructing the nightmare that was The Harmon.

That allows us to spend really constructive time to develop ideas of what would maximize that two-plus acres parcel right on the corner of the Strip. And clearly, though we're not ready to explain all of the ideas we have, you'd have to believe that an expansion of Crystals is the overarching use of that property, and there could be others.

Crystals itself is an extraordinarily valuable asset, we've discussed it on prior calls, and don't think that we've lost sight of that. We believe it not only is more valuable today than it was even last quarter, but we believe with a growth plan it would be more valuable still going forward."

Fred Segal Closes at SLS

Part of the SLS business plan was to bring popular Los Angeles restaurants and shopping options to Las Vegas in an attempt to capture the LA crowd. One example of that was having Fred Segal as the exclusive retail partner of the resort.

The plan doesn't seem to be working, as this week it was reported that all seven of the Fred Segal stores at SLS have closed and left town.

Respected Las Vegas blogger David McKee tweeted: "SLS Las Vegas: Now w. 100% less Fred Segal!"

This photo has also been making the rounds, showing an empty Fred Segal location at SLS:


Photo: Stephen G. Hall.

It's no secret that SLS has been struggling to attract visitors which has led to poor financial performance. The Fred Segal departure doesn't look good, but retail only makes up about 3% of the SLS revenue stream. If they can replace those stores with something that makes more money it might actually end up being a good thing. Maybe.

Related:
SLS is struggling financially Part 1.
SLS is struggling financially Part 2.

Bally's Grand Bazaar Shops

I haven't had a chance to share my thoughts about the Bally's Grand Bazaar Shops on this blog. With many of the shops opening, now seems like a good time.

Bally's is located pretty far off the Strip in terms of walking distance. For years to reach the casino you would travel up a long moving walkway, and then up and down a series of escalators. Pretty inefficient.

The large amount of space between the Strip and the entrance presented an opportunity for Bally's parent company Caesars Entertainment to build something productive. With retail being hot right now, and an easy way to make money by simply renting space out to tenants - the decision was made to develop the Grand Bazaar Shops.

The area has been open for a couple of months, but it seems like tenants are just now starting to open. One of the anchors is a Starbucks with stadium style seating for people watching. Fuel Bar and Garage has flair bartenders along with the "garage" game-room with beer pong, pool and even basketball. There's also a hot sauce shop that I'll probably have to check out.

The shops have been widely criticized across the internet for being tacky, flea-market-like, and an eyesore. I can't exactly disagree with any of these sentiments, but I'm probably more open minded than most comment section participants.

From what I've seen the layout just seems odd. I understand that Bally's isn't a luxury property, but I think Caesars could have made this area into a nicer space - similar to what they did with The Linq and what MGM is doing with The Park.

The saving grace might be the free attractions at the shops:

Nightly Light Show:
Experience the unique hexagonal LED rooftop canopy, designed just for Grand Bazaar Shops, featuring an energetic light show set to custom-created themed soundtracks.

Swarovski Midnight Celebration:
Central to the Grand Bazaar Shops’ experience is the Swarovski Crystal Starburst. The Starburst soars above Grand Bazaar Shops’ colorful, mosaic-pattern rooftop canopy and is the star of the nightly Swarovski Midnight Celebration, a brilliantly colored light, music and video spectacle.

I'm guessing neither of these will become the next Bellagio fountains or Mirage volcano, but in a time where free attractions are going away, it's nice to have them as an option. I really liked the old Bally's moving walkway light show, so I have a feeling I might end up liking this one as well.

Parts of CityCenter could be For Sale

MGM Resorts International would consider selling off parts of CityCenter in order to reduce the project's huge debt load.

During MGM's earnings call this morning, CEO Jim Murren said the Crystals mall was particularly attractive for a possible sale, and even mentioned that the shopping complex was built with a plan to sell it off eventually. Not sure I'm buying that part.

The company isn't going to sell Aria, but would be also be open to take offers on the non-gaming Vdara and Mandarin Oriental hotels.

The biggest downside I can think of with selling Crystals would be MGM's loss of that part of the Strip and the ability to funnel people back to Aria. On the other hand they are building a huge Aria marquee that should help with that, and I assume the eventual buyer of Crystals would have some kind of agreement to be Aria pedestrian friendly.

Kardashian Khaos at the Mirage

The Mirage announced a new "Kardashian" themed boutique store will be opening later this year in November.

The hotel posted on facebook:

We're excited to announce Kardashian Khaos is coming! A new retail store will open later this year & you're invited to experience the Kardashians like never before!

Unfortunately for the Mirage the announcement caused quite a backlash, with 100+ comments on the facebook page bashing the Kardashians and the decision to give them a store at the Mirage.

I guess you can't please everybody all of the time. While the Kardashians are immensely popular in some circles, it looks like their demographic doesn't stay at the Mirage.

Total Rewards Marketplace

Total Rewards has introduced a new way to earn Reward Credits without gambling. Using the new Total Rewards Marketplace, you can get 1 RC for every dollar spent at select online retailers.

The program seems pretty straightforward. Just go to the Total Rewards Marketplace, sign into your Total Rewards account, and start shopping.

The TR Marketplace seems like a good way to avoid the six month expiration date on Reward Credits. I have some credits that are expiring soon, so I might use this program to extend them instead of going to a casino. The credits take up to 45 days to post to your account though, so that might be a small hassle.

Some pretty big retailers are included in the program, like Target and Best Buy, so finding something to buy shouldn't be a problem. If you were going to buy anything from these places anyway, using the TR Marketplace seems like an easy way to pick up some extra points.

For more information: Total Rewards Marketplace.

Donny and Marie Wrap at Flamingo Coming Down

The world famous Donny and Marie wrap on the Flamingo is coming down and will be replaced with an advertisement for the new H&M store at the Forum Shops.

While the Donny and Marie wrap was definitely tacky and a bit of an eyesore, at least hit had something to do with Las Vegas and more specifically the Flamingo. An H&M advertisement seems kind of bland for that kind of strip frontage, and the store it's promoting is across the street at Caesars, which might confuse some pedestrians.

The preferred option would be not to have billboard advertising on the front of hotels, but it looks like they are here to stay, at least at Flamingo. If they insist on wraps, something like the Love advertisement at Mirage isn't too bad, it's fairly unobtrusive and understated.

Cosmopolitan Retail Lineup

Cosmopolitan today announced the retail stores that will be in the hotel.

The offerings include:

- Beckley Boutique
- Allsaints Spitalfields
- CRSVR Sneaker Boutique
- DNA250
- Molly Brown's Swimwear
- RetroSpecs & Co.
- Skins 62 Cosmetics
- Stitched Men's Apparel

I'm not really familiar with any of these, which is probably a good thing for the Cosmopolitan because I don't know a thing about high end fashion. I'm sure these are exciting names people who are more informed though. Cosmo CEO John Unwin was quoted as saying that these shops were each "specifically curated" for the Cosmopolitan brand.

Source: fox5vegas.com

Harrah's Project Linq - Still on the Table

Back in July 2009 Harrah's revealed that they were planning on transforming the street between Flamingo and O'Sheas into a pedestrian walkway consisting of bars, restaurants and shops with a giant Ferris wheel at the end of the street.

A year has gone by, and many people had forgotten about the project until a recent Business Week article confirmed that Harrah's is still aiming on building the development in 2011. The cost of the project would reportedly be less than $1 billion.



Here are my thoughts on the project:

I love the idea of turning the street into a pedestrian only street. It's a hassle to cross that street at times, and big crowds can build up near O'Sheas and in front of Margaritaville. Having the street pedestrian only would clear up that congestion and make the whole area a lot safer and more convenient.

Having lots of bars and shops all together sounds like a good idea, but they will need to attract some pretty unique places to entice people to wander down the street. Hopefully they'll have some cool joints and not just an extended O'Sheas food court.

Lastly, I don't really like the Ferris wheel idea. They need an attraction at the end of the street to get people to walk down there, but I'm not sure a Ferris wheel is what people want in Las Vegas. I could be wrong though, as the London Eye seems pretty popular, and people are always looking for great views of the Strip.

UPDATE: August 3, 2011.
Clark County has approved the project and new renderings have been revealed. See them here.

Gucci Crystals Wrap

Building "Wrap" advertisements are very popular in Las Vegas. Hotels and shows love to use the side of buildings to promote their product.

Here's one that I just noticed recently. It is advertising the opening of a Gucci store inside the Crystals shopping mall at CityCenter. The store is scheduled to open sometime in 2010.



Photo Credit: detachedmind.

H&M Flagship to open at Forum Shops

The largest H&M store in the country will open at the Forum Shops this fall. It will take the place of the recently closed FAO Schwarz store, which had been at Caesars Palace since 1997 with the signature Trojan horse display out front.

Las Vegas already is home to two H&M locations, one at the Miracle Mile Shops and one at Town Square. Ever since this announcement there has been questions about how a low priced retailer like H&M would be able to make much money at the ultra high end Forum Shops. I think it just might work. A lot of people pass through the Forum Shops and most of them don't have the money to buy the really expensive stuff, but might want to buy something at a lower cost - especially in this economy where tourists in Vegas are tending to spend less.

Source: Las Vegas Sun.

Las Vegas - the 26th Most Fun City?

It is routinely referred to as "The Entertainment Capital of the World" but apparently Las Vegas is only America's 26th best city to have fun in.

This according to a study by Portfolio magazine. Now, I can understand that Las Vegas doesn't have some "fun" things that other cities may have. No professional sports teams. No water sports or skiing unless you want to make a day trip out of it. Vegas is probably also lacking in the "culture" department (although they were ranked a respectable 29th in that category).

Vegas got ripped off in a few categories that just don't make much sense though. 81st in shopping? You can pretty much find any high end retailer on the Strip, and a couple of different outlet centers nearby. 44th in food and drink? Doesn't every top chef in the world have a restaurant in Vegas? 88th in Low-Impact sports (like golf)? I'm pretty sure that Las Vegas has a ton of golf courses.

One possibility is that they weren't counting the Strip, because most of it isn't actually in the city limits of Las Vegas... but they list the population as 1.8 million, when the population inside the city limits is only 550,000 so that leads me to believe the whole metro area was considered.

Another thing that I thought of was maybe they were counting the "locals" experience and so they left out many of the "tourist" attractions. That kind of makes sense, but there's nothing stopping a local from taking advantage of the great restaurants and other fun things that are available to tourists.

Source: Portfolio.com