Strip restaurant considers property development plans

Monday, Aug. 26, 2002 | 10:53 a.m.

Smith & Wollensky Restaurant Group Inc. said it's been approached by developers about possible hotel and timeshare developments at its Las Vegas Strip site.

Smith & Wollensky revealed the development proposals as it closed a $14 million loan agreement that will enable it to significantly reduce occupancy costs at its Las Vegas restaurant by enabling it to buy the land and building it occupies. Some of the loan proceeds will be used for general corporate purposes.

The company will buy the land and building at 3767 Las Vegas Blvd. South, opposite the New York-New York and Monte Carlo hotel-casinos, where it operates its 675-seat, 30,000-square-foot restaurant.

The company has a long-term lease with annual rent of $1.6 million and an option to buy the land and building for $10 million. A recent appraisal valued the property and improvements at $29.1 million.

"The company has been approached by hotel developers and operators who are interested in acquiring or leasing a portion of the property for the development of a hotel or timeshare; however, no definitive plans for future development have been finalized," the New York company said.