拉斯维加斯近期交易更新-机构投资显著上涨
Las Vegas Market Update-Number of Institutional Transactions Rising Fast
纽约顶级基金收购凯撒集团名下里奥酒店
位于拉斯维加斯的里奥赌场酒店，配备2500个套间，曾引领全程的旅游度假风潮。在酒店即将迎来营业第三十年之前凯撒最终宣布将其以5.16亿美元作价售于纽约Imperial Companies。该交易于今年9月在证券交易委员会宣布。
据监管审批要求，该项目预计于2020年一季度完成交割。
根据合同要求，凯撒集团将以4500万美元年租金租回该酒店，期限至少两年，并可多支付700万美元以续租第三年。
拉斯维加斯大额交易项目再起
资本投资界的一座显著标志
里奥项目标明持续注入拉斯维加斯的资本不仅尚未停歇，甚至愈演愈烈。
热点地带春山路
资本的关注从拉斯维加斯大道一路往北，延伸至春山路和沙漠驿站路。该地区正在逐步成为资本更加活跃的地区— 里奥的交易本身便是该趋势的一次展现。
资短期人流量仍维持稳定
鉴于凯撒集团的租赁合同，里奥酒店将至少继续运营2-3年。该方式能够为当地区稳定的零售、餐饮、酒店和住宿注入强心剂。
拉斯维加斯正在取得全球资本关注
根据多家地产分析机构分析，在未来里奥酒店失去凯撒集团会员和世界扑克大赛的入驻后，未来开发方很可能将其作为非博彩产业进行开发。以此该项目未来很可能在拉斯维加斯非博彩领域填下浓重一笔，除此之外还有突袭者体育馆、谷歌、Aptiv等各行各业的加入。这些非博彩行业的注入昭示着拉斯维加斯不在仅限于博彩和旅游业的产业发展，更欢迎着来自不同国家和地区的各行业领域投资开发者进入，将该城打造为混合型国际大都市。
买方：纽约顶级基金Imperial Companies
Imperial Companies 是一家位于纽约的地产资本管理基金，创始人Michael Fasciteli曾是沃那多信托基金的CEO兼总裁，联合创始人Eric Birnbaum 是沃那多信托并购和资本项目开发的主管。Imperial是一家垂直一体化的大型地产投资机构，投资足迹遍布全美。该纽约基金总投资额超过数十亿美元，团队曾完成的项目包括库斯纳集团在纽约10亿美元大楼、位于纽约时代广场的新概念酒店，主推精品住宅理念的纽约亨利大楼等。
纽约基金的投资理解
Imperial团队认为在现在以5.16亿美元收购里奥是非常恰当的进入拉斯维加斯市场时机。这表明纽约和华尔街投资者在持续寻找更高投资回报的地区中选择了拉斯维加斯，并且认为现在正是进入市场的最佳时机。
由沃那多前高管团队收购的30年历史酒店
里奥酒店面积覆盖整个购入区块面积的65%。经过将近30年的经营，再加上该酒店在过去5年从未完成任何大规模维护工作，任何接手方都可能需要大额整修、翻新甚至推倒重建的投资。其附近棕榈酒店的6亿美元翻新项目在今年上半年刚完成一期竣工，而该笔巨额投资仅能支撑完成中等规模（无结构性拆建）的修整。换言之里奥酒店未来的工程投资额将达到8-30亿美元。而在这个阶段Imperial的进入，更表明即使对开发方有极高再投资要求，Imperial仍对未来能成功退出充满信心。该举动更能成为其他在观望投资者在拉斯维加斯进行进一步举措的助力。
资产价值
凯撒在1998年以8.8亿美元接手该资产，并在随后20年完全从未对其有任何大型再投资注入。考虑到其缺乏后期维护修整，以及长时间的持续高强度经营，Imperial在现阶段的5.16亿美元仍是一个相当高的估值。此外，就在里奥酒店斜对面的棕榈酒店，恰恰在2年前以3.12亿美元作价完成出售。这些正是拉斯维加斯大型房地产项目价值稳定的证明。
未来存在改造体育场可能
目前在全美四大职业体育运动中，拉斯维加斯已拥有来自橄榄球联盟的突袭者队和来自曲棍球联盟的黄金骑士队。目前已有大量来自不同机构的预测和舆论表示未来篮球和棒球联盟也将加入该城市。
关于将里奥酒店改造成一座全新职业棒球联盟体育馆的舆论已传播了超过两年。鉴于其位于炎热沙漠地带，与I-15高速以西，位于Hacienda和Russell大街交界处的造价15亿美元球馆相同，未来的拉斯维加斯棒球场将同样是圆顶型球场。而里奥所处的大约540亩土地刚好能够完全满足该类型大型球场的占地所需。
在另一方面，Imperial Companies的联合创始人Michael Fascitilelli同时也是在役NBA球队雄鹿队的拥有者之一。雄鹿队在这几年正在严肃考虑迁址，并也将拉斯维加斯作为其潜在的目标之一。
对LVSM的影响
进一步显示LVSM其唯一性
随着越来越多的资本注意到春山路地区，LVSM拥有地理坐处中国城大门，毗邻拉斯维加斯大道，相对土地成本较低，且为该地区仅剩的可供大型酒店或商业项目开发的大面积区块等诸多优势，未来必将成为受争抢的火热项目，也必将带来更高的溢价和升值空间。
退出价值
鉴于当前里奥酒店所存在的天然退出风险，Imperial所估算项目4-6年后退出价需要超过当前作价一倍。在保守估计情况下，以相同估算条件在LVSM将带来3-3.5倍回报，因为其土地购入价显著低于里奥的95万美元/亩 。
相同交易模式
Imperial的交易从侧面证明了Oasis在操作模式上的正确性。即购入并保有极具战略性的高潜在价值土地，但同时仍有稳定现金流（租金收入）供以覆盖部分成本。
未来里奥/Oasis区块互补作用
未来里奥资产的非博彩行业转型将协同LVSM未来博彩度假区协助打造大型度假区域，该区域也能带来更多流量，更高的关注度以及潜在更高租赁或出售收入。
未来里奥新项目所带来的流量增长
无论未来里奥转型成为一座职业体育赛场，商业中心亦或是全新酒店，都必将为春山路地区带来更多流量，而毗邻的LVSM也将成为最大的受益者。
NYC Top Tier Fund Buys Caesars’ Rio Hotel & Casino
Rio Las Vegas, the 2,500-suite hotel and casino that was a Las Vegas innovation when it opened in 1990 has been sold to New York-based Imperial Companies for $516.3 million in a deal announced in a Securities and Exchange Commission filing on September.
The deal, subject to regulatory approvals, is expected to close by the first quarter of 2020.
Under the terms of the agreement, Caesars will continue to operate the property pursuant to a lease for a minimum of two years and pay annualized rent of $45 million. The Buyer has the option to pay Caesars $7 million to extend the lease under similar terms for a third year.
Another Major Transaction in Las Vegas
A Notable Sign in Capital Investment
Rio’s deal shows the capital wave pouring into Las Vegas has never stopped, and is getting even stronger.
Spring Mountain Rd the Hottest Spot
Capital attention are moving north along the Prime Strip, to the Spring Mountain Rd and Desert Inn Rd area, it has become a hotter spot of Las Vegas— Rio’s transaction is another sign as the most recent major deal.
Stable Traffic in Short Term
Rio hotel-casino will continue to operate at least 2-3 years under a lease agreement, brings sustainable needs for close-by retail, restaurant, hotel and residential.
Las Vegas Grabs National Attention
According to various real estate analysts, with the loss of Caesars Rewards and the World Series of Poker, Rio will most likely be re-positioned as non-gaming focused amenities. The NYC Imperial Companies’ deal is an addition to other non-gaming focused action such as the Raider Stadium, Google, Aptiv, etc. Those move indicate that Las Vegas is no longer only available for local gaming & resort participants, but welcomes players from any other states/nations, industry and field. Adding together to develop Las Vegas to an international cosmopolis.
The Buyer: NYC Top Tier Capital Management Fund
Imperial Companies, led by founding partners Michael Fascitelli, the former CEO and President of Vornado Realty Trust, and Eric Birnbaum, a former senior member of Vornado Realty Trust’s Acquisitions and Capital Markets Group and Development Team, is a vertically integrated real estate investment and management platform across all major US markets. Headquartered in New York City. The team has done multi-billion of investment across US, including Jared Kushner’s $1B tower in NYC, the Pod Hotel in New York’s Time Square and Henry Hall the “Boutique Residential” in New York, etc.
NYC Funds’ Insights
Imperial’s team decided that purchasing the Rio at $516M was a suitable entry point into Las Vegas This deal demonstrates that New York Investors and Tier one capital management funds are seeking better returns and targeting Las Vegas for capital investment, they believe this could be the best timing to enter the market.
30-year-old Property Transaction by former Vornado Realty Executives
Rio buildings occupy about 65% of the size footprint. After almost 30 years of operation, plus the property has barely been maintained over the last five years. Any redevelopment would likely require a very large demolition or overhaul of the existing structures. Given the Palms hotel required a $600M capital outlay for a mid-level (no structural demolition) refresh and renovation, the Rio would easily be an $800M to $3B+ redevelopment project. Imperial’s $516 m purchase shows their full confidence in exit, even it requires significant capital of future refurbishment or new construction for end-user developers. The action promotes other investors in decision making of targeting Las Vegas for capital investment.
Property Value Upside
Comparing to Caesars purchased the property in 1998 for $880 million, plus they really haven’t put any significant investment into the Rio for over 20 years. Imperial’s $516 m deal price is still at a high spot considering the fast depreciation caused by lack of major maintenance. On the other hand, the Palms, which is right across the street and newer, sold just 2 years ago for $312.5M. This transaction provides a good example for showing potential value upsides of Las Vegas properties.
Development Potential for Sports Stadium
With two of the four “big four” pro leagues in Las Vegas, which are NFL Raiders and NHL Golden Knights, there’s been plenty of speculation that the NBA and MLB will join in on the Sin City fun as well.
Rumors about replacing Rio to a new MLB ballpark has been around for more than 2 years. Like the $1.8 billion NFL stadium being built just west of I-15 between Hacienda Avenue and Russell Road, an MLB ballpark in Las Vegas would need to be a domed facility due to the Southern Nevada desert heat. The plot of land the Rio sits would be more than capable of becoming an MLB site. The roughly 90 acres is nearly 40 more than the acreage where the Raiders stadium is being built. It is one of the very few remaining prime location in Las Vegas that is capable for a major league stadium.
On the other hand, co-founder of the buyer Imperial Companies, Michael Fascitelli also is the co-owner of Milwaukee Bucks, and the team is actually considering re-location for a while. It is possible to welcoming a future NBA team re-locate to the stadium as replacement of Rio.
Reflection to LVSM
Uniqueness of LVSM
As more capitals focus on the Spring Mountain Road area, plus unique advantages of LVSM as the gate to Chinatown, close to the Prime Strip, relatively lower rebuilding cost and higher development potential, and it is the only prime site available for massive resort or other commercial project in the area to compete with top tier competitors, the LVSM deal price would be even more competitive in the market, bringing higher exit value potential.
Exit Upsides
Assuming Imperial’s purchase require an attractive return for the risk being assumed, they would need to realize an exit price of about double their entry price to make it worthwhile over a 4 to 6 year period. Using conservative targets, their exit point would mean a 3X to 3.5X return on our LVSM investment as our cost basis is significantly less than their $5.8M per acre.
Similar Deal Strategy
Imperial’s purchase justifies Oasis’ strategy as they are using the exact same “Covered Land” play where they are holding onto a very strategic property asset with the available rental income provided by Caesars.
Future Rio & Oasis Complementary Effect
Transformation of the site will help build a resort community along with the future LVSM Gaming & Resort site, and create complementary effect among each other. The cycle will bring much more traffic, higher accessibility and lease price potential for retail, restaurant, resident, etc.
Traffic Brought by Replacement of Rio in future
no matter it’s for a new major league sport stadium, commercial center or even a brand new hotel, after the commencement of the new property, it will draw more traffic to the Spring Mountain Road area, LVSM would be the first property to be benefited.
