In an equal stakes joint venture, Simon Property Group and Invesco Real Estate have purchased The Shops at Crystals in Las Vegas.The deal is valued at nearly 1.1 billion dollars. Simon Property Group will lease and manage the approximately 350,000 square feet of high-end real estate.
Lying directly at the entryway of the CityCenter, complex, a 9 billion dollar MGM property, The Shops at Crystals is already host to a number of top-tier retail destinations. In addition to 10 luxury brand flagship stores, another 30 luxury retailers maintain a presence in the complex. Simon Property Group will seek to maintain and expand this unique collection of business tenants in a highly volatile market.
According to the Las Vegas Convention and Visitors Authority, the average amount spent on shopping by a typical Las Vegas visitor has declined in recent years. With tourists spending less Simon Property Group will need to convince their existing tenants to remain committed; while somehow attracting a new tenant base as well.
Invesco Real Estate and Simon Property Group can take comfort in the knowledge that while overall shopping expenditures are down among Las Vegas visitors, casino gambling has seen a steady upward trend. With an innovative strategy, the partners may be able to lure visitors away from the gaming tables and into the malls. Having a number of very prestigious brands available in a location adjacent to a major casino may be just enough of an incentive for visitors to consider picking up an expensive reminder of their time in Las Vegas.
This billion dollar deal represents an unprecedented opportunity for real estate professionals, Serving the needs of potential tenants and abutters will provide a steady stream of business in an otherwise flat market. The prestigious name and location of The Shops at Crystal are a strong draw for any brand conscious business entity.
Ultimately, this deal proves that the Las Vegas real estate sector remains an attractive option for large corporations and other monied interests. Putting their capital on the line in this way signals confidence in Las Vegas for the long term. At the very least this deal will create strong investor interest in Las Vegas real estate. This joint venture may indeed signal that many similar deals are on the horizon.