There are some -- not many -- that could be acquired.
The problem is -- and will always be -- that potential Buyers want to acquire Resort properties in the same manner as if they are acquiring a Net Leased Property in their own back yard.
Unfortunately -- and this goes for all would be buyers -- it doesn't work that way when it comes to Las Vegas Resort Properties.
I can't explain it any more simplistically than if a property is being marketed at $6 Million an acre. And, surrounding comparable sales indicate $7 Million an acre, why are Buyers pushing for a sale at $3 Million an acre?
For Example: a small extended stay resort motel property with a small casino (8 slots only) though this property is zoned for an Unlimited Gaming Casino (Full slots, table games, etc.) that sits right smack inside the Clark County Gaming Overlay (which means there are no restriction to developing an unlimited gaming casino) isn't going to be sold cheaply.
And Buyers arguing with me that the Net Income from the property means the value is less than the asking, baffles me.
The Net Income of the property may be a contributing value, but when it comes to land value being more valuable than the business being run at the location, trying to acquire this based on the Net Income isn't going to cut it.
Many, many times, I've had brokers outside of Las Vegas tell me that the value of a resort property is solely based on it's Net Operating Income.
I have to over explain to them that if the land is worth much, much more than the business net income, that's the sales price.
(This scenario is never, ever going to change.)
To which I always respond, "that may work in your neck of the woods. But, it doesn't work here."
I've had offers on listings that were for a fraction of what the properties eventually sold for.
I realize that Buyers are trying to get the most equity they can at the time of purchase; I also understand that the Sellers are trying to get the most bang for their buck for the equity value.
So, if you think a 200 room resort with a small casino, Full Alcohol and located within the Clark Gaming Overlay is worth $20 Million when comparable sales say it's worth $21 Million, send me an email.
(Psst! The abandoned and unfinished Fontainebleau just sold for $25 Million an acre. Don't tell anyone!)
After executing the appropriate paperwork, I'll send you the property details.
To Contact David Howes try: davidATdavidhowesDOTnet OR; 7 0 2 5 01 9 3 8 8 AND Please #Follow David on Twitter: @DavidAHowes Have a nice day!