Archive for December 5th, 2006

Another Multi-Billion Dollar Bet on the Future Prospects for Greater Las Vegas

Tuesday, December 5th, 2006

Station Casinos Inc. has just received an $82-per-share offer from a group led by Chairman and Chief Executive Frank Fertitta III; his brother, President Lorenzo Fertitta; and Colony Capital LLC. Station Casinos is a Las Vegas-based company that owns and operates 16 casinos that depend on Las Vegas residents as their PRIMARY source for customers. The Leveraged Buyout Offer (LBO) calls for the assumption of more than $3.4 billion in debt to complete the transaction. At MS Las Vegas Real Estate, we would like to ask you to think about this stunning announcement for just a few minutes. How in the world could you have any expectation of paying back $3.4 billion unless you were HIGHLY CONFIDENT about the future growth and economic prospects of Las Vegas? Additionally, it’s simply not enough that the Fertitta brothers feel sure (to the tune of billions) about the future of Las Vegas and the disposable income of the local population. The consortium of financial players fronting the $3.4 billion have to be equally convinced, which they apparently are! What this proposed transaction adds up to is yet another huge vote in favor of the future economic prospects of Las Vegas, Nevada. The best time to pay attention is when people vote with their wallets. Project CityCenter is another great $7 billion example of the same “roll of the dice”. The temporary downturn in the market for Las Vegas homes is just that, temporary. The long-term future of the Las Vegas real estate market is something that we’re more than willing to stake our reputation on. The “smart money” is aggressively hunting for opportunities in this market with the expectation of significant future returns. The Michelle Sterling Team at Prudential Americana is assisting a number of clients in the search for outstanding value in a challenging environment. Just like the Fertitta brothers, our own future economic prospects are tied-in directly with the growth and prosperity of this great city! I’m sleeping just fine, thank you. This is an EXCELLENT time to be looking at Las Vegas homes for sale, both new and resale. Our knowledge and experience are at your disposal.