Home » VT News » Holy Crap : Elad Flips Frontier Plaza To Wynn for $1.9B

Holy Crap : Elad Flips Frontier Plaza To Wynn for $1.9B

By Chuckmonster on Thursday, 3rd April 2008 5:26pm
  » filed under Las Vegas  comments: 1


Despite quickly squelching the rumors that the Strip Plaza Vegas project was facing financing woes three weeks ago, we've received word that Elad has accepted an offer for the 38.5 acre parcel from Wynn Resorts. The price tag? $1.9B in stock and cash - a whopping $46M/acre.

Our sources say that the deal has been discussed privately for nearly three months, with the final details of the deal being ironed out around the time the financing rumor was posted by a Wachovia bank analyst. Apparently, the change in financing that caused the rumor was El Ad's making preparations to pay down financing after a handshake deal with Wynn Resorts was made.

We've put in a call earlier to some of our inside contacts at Wynn who said "we have no comment on this or any future deal Wynn Resorts may or may not undertake." Cagey.

This isn't the first time that Elad has done a bait and switch flip of a property. In 2003 they quickly turned a profit on the historic Morrison Hotel (famously pictured in the cover of the Doors LP of the same name) in London for a cool 13MGBP (US$25M).

Elad's cozying up to Steve Wynn during the development process over the last six months always seemed suspicious to us. Why would a Elad solicit the input and advice on confidential plans from the person whom they will be in fierce direct competition with? Composer Igor Stravinsky always said that the best way to enrapture listeners was to offer them "first the silk, then the knife."

More on this here.

April Fools!



Comments & Discussion:

hope this aint an april fools joke... hahaha

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