Thursday, Jan. 3, 2002 | 11:19 a.m.
The developers acquiring two Lakes Gaming Inc. properties on the Las Vegas Strip for $31.8 million said they plan to develop a mixed-use project that could potentially include retail, a boutique hotel and a high-rise residential development.
Las Vegas developer Brett Torino, whose company Metroplex LLC was formerly a joint venture partner with Minneapolis-based Lakes to develop the project, said he and New York-based luxury commercial developer Flag Luxury Properties now own Lakes' 2.4-acre Polo Plaza shopping center and Lake's rights to the adjacent 5.5-acre, 125-room Travelodge property.
He said the project -- which could potentially be worth $700 million -- will be developed by Metroflag LLC, a joint venture between Metroplex and Flag. Metroflag's subsidiary Metroflag Polo LLC acquired Polo Plaza, while another Metroflag entity Metroflag BP LLC bought rights to Travelodge, consisting of a long-term land lease and motel operation.
Torino said he hasn't ruled out the possibility that the project could have a gaming component and that several international gaming companies have expressed strong interest in the project.
"We examined our options, (in light of) the terrorist attacks and the fact that the economy has changed over the past two years and decided the best thing to do was for Metroplex to buy out the property," Torino said.
"Prior to Sept. 11, we were very close to signing binding letters of intent with several North American-based hotel chains to co-develop the project," he said. "But after Sept. 11, we felt it was prudent to not forge ahead because the hotel sector was beat up pretty good."
"We've been operating as if we were partners with Flag to develop the project for past 12 months now. Flag would have been our partner regardless of whether we signed the letters of intent with the hotel chains," he said.
Torino said he plans to expand Polo Plaza by adding more tenants and square-footage and will give the shopping center a facelift in the third-quarter this year. Polo Plaza now has about 15 tenants.
"The direction of Polo Plaza is not to do more high-end retail, but to develop it as more as an entry-level type project. We'd rather take advantage of the pedestrian traffic it already has," he said. "But it's definitely in need of a facelift and more operational discipline."
Torino said he intends to operate the 40-year-old Travelodge for the next year or two, but said there's "definitely better use for that property than just a Travelodge." He said the residential, retail and hotel project will be built on the Travelodge site over the next few years.
Meanwhile, Lakes said it's also in a separate deal to develop a timeshare property nearby at the site of the old Shark Club nightclub. Lakes still owns the Shark Club property, named for a nightclub that closed in 1996 and burned in 1998. This is now a 3.4-acre undeveloped site adjacent to the Polo Plaza shopping center and the Travelodge sites.
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