Details on new Las Vegas Strip development unveiled

Wednesday, April 14, 2004 | 10:35 a.m.

The executive who is leaving the Venetian hotel-casino to develop a new Las Vegas Strip resort said today that he and his partners would build a mixed-use project with a large casino component.

David Friedman, former assistant to Venetian Chairman Sheldon Adelson, real estate developer Ian Bruce Eichner and an investment company are partnering in a plan to develop 8.5 acres at Harmon Avenue and the Strip.

Friedman said today the as yet unnamed resort would include retail, hotel, timeshare and entertainment center on a U-shaped parcel near the Jockey Club.

Friedman, Eichner and SFM Capital Management, an affiliate of Soros Fund Management, formed 3700 Associates LLC, Las Vegas, to develop the property just south of Bellagio.

Friedman said today it would take 12 to 18 months to break ground on the project and about two years to complete.

The partners are still working on different options for the project, but Friedman confirmed that the 3 million-square-foot development would include about 80,000 square feet for a casino, a 1,500-room hotel with 400 to 500 condominium units, a separate tower with 300 time-share units, 300,000 square feet of retail and restaurant space and underground parking for about 3,000 cars.

Friedman said a big advantage the development will have is that much of the developable property is along the Strip and the new Harmon Avenue extension over Interstate 15 that has yet to open.

The U-shaped parcel surrounds the Jockey Club, a 270-suite, 10-story timeshare development.

"We still have a couple of moving pieces that we haven't worked out," Friedman said. "We may add a few time-share units or rooms."

For that reason, Friedman said it hasn't been determined how tall the towers would be and how much would be invested in the property. The partners say the condominium units could be rented out by the hotel when not in use, potentially increasing the capacity of the hotel.

One tower would be placed close to the Strip while the other would be on the west side of the property giving guests and residents views north and south along the Strip.

"They'll have a great view of the fountains at Bellagio," Friedman said.

He said the site plan is being developed to take advantage of existing sight lines and not disturb views of neighbors.

"One of the great attributes of the property are the views," Friedman said. "There are not many better views along the Strip and probably not many places in the world with better views."

The size of the casino would be above average by Las Vegas standards. An 80,000-square-foot casino would be about the size of those at Bally's, Paris-Las Vegas and the Las Vegas Hilton.

Friedman, who is president of the company, said that he has been contacted by retailers, restaurateurs, nightclub operators, entertainment companies and hotel operators interested in participating in the project.

Friedman said he and his partners are working with theming concepts and hope to develop a name for the development "that all the partners are happy with" within the next few weeks. He said details on the size of the resort and the site plan are expected to be resolved within the next three months.

Eichner, chief executive of 3700 Associates LLC, developed a timeshare project in Manhattan and recently completed the Continuum, a 40-story condominium in Miami Beach.

The partners did not give details of the land transaction. Clark County records show 3700 Associates LLC acquired a parcel April 1 from F.G. 7-11 LLC, signed by co-managing member Margaret Elardi, for $90 million.

Friedman surprised colleagues in February when he announced in a memorandum his plans to leave the Venetian.

He joined Adelson in 1995 as the first employee of Venetian Casino Resort LLC and has served as an adviser to the Venetian's chairman of the board. Friedman has been one of the company's top attorneys and has been the financial liaison and securities expert for the Venetian's parent company, Las Vegas Sands Inc.

Friedman also has been instrumental in the company's development of casinos in the Chinese city of Macau.