What will Carl Icahn do now?
April 14th, 2010 at 12:31:55 PM
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Carl Icahn lost out on his bid to acquire Trump's Atlantic City casinos .
So he's on the loose again. Do you think he'll go after Riviera now? It kind of makes sense that he may want the contiguous properties. I mean he can get the Riviera for cheap now, and if he finishes the Fountainbleau, the land value under Riviera will improve.
Possibly he will buy up the 555 properties, and the Wet & wild. He could almost buy the whole north end of the strip for the $1 billion profit that he made selling the Stratosphere and the Arizona Charlie's.
The 5.43-acre La Concha site was acquired for $180 million - ($33.15 million per acre) while Carl Icahn got the entire 24.5 acre Fountainbleau site with the building for $150 million.
La Concha Lobby (now in Neon Graveyard museum)
So he's on the loose again. Do you think he'll go after Riviera now? It kind of makes sense that he may want the contiguous properties. I mean he can get the Riviera for cheap now, and if he finishes the Fountainbleau, the land value under Riviera will improve.
Possibly he will buy up the 555 properties, and the Wet & wild. He could almost buy the whole north end of the strip for the $1 billion profit that he made selling the Stratosphere and the Arizona Charlie's.
The 5.43-acre La Concha site was acquired for $180 million - ($33.15 million per acre) while Carl Icahn got the entire 24.5 acre Fountainbleau site with the building for $150 million.
La Concha Lobby (now in Neon Graveyard museum)
April 14th, 2010 at 2:14:10 PM
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However it's going to cost him 1 to 2 billion to finish the Fountainbleau. Just sayin.
April 14th, 2010 at 3:11:57 PM
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But the man is worth $10.5 billion (one of the 60 richest people in the world). He paid almost nothing for the building now ($150 million). He could sit on it for your years. I was curious if he would expand his holdings using the same argument.
Nobody really bid against him seriously. So most people don't think the Fountainbleau will ever be viable.
I think it is possible that the North strip will never recover. Future development may all occur around the Souther and along Harmon Ave and Tropicana Ave.
Nobody really bid against him seriously. So most people don't think the Fountainbleau will ever be viable.
I think it is possible that the North strip will never recover. Future development may all occur around the Souther and along Harmon Ave and Tropicana Ave.
April 14th, 2010 at 8:58:32 PM
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I think that you have to look at Icahn's pattern, which is to flip and not necessarily to develop. Though he's buying up and bidding on a lot of gaming doesn't mean that he's in it for the long term at all.
I think Icahn will simply sit on Fontainebleau, maybe buy a couple of parcels around it, and then wait for the economy to heat up again so that Icahn can sell it for multiples of what he bought it for.
I think that as long as Echelon is not built and the mall to the north of Encore is not developed that the north strip is in trouble. Fontainebleau will probably generate enough street traffic to generate enough income for the surrounding properties. Increased overflow from the convention center will also help these properties either.
But I don't see Fontainebleau being completed until 2013 at the earliest.
I think Icahn will simply sit on Fontainebleau, maybe buy a couple of parcels around it, and then wait for the economy to heat up again so that Icahn can sell it for multiples of what he bought it for.
I think that as long as Echelon is not built and the mall to the north of Encore is not developed that the north strip is in trouble. Fontainebleau will probably generate enough street traffic to generate enough income for the surrounding properties. Increased overflow from the convention center will also help these properties either.
But I don't see Fontainebleau being completed until 2013 at the earliest.
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