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StumbleWalgreens will anchor $25 million parcel across from CityCenter
The 2.16 acres of land bought by BPS Partners, which includes developer Brett Torino, has been approved for the development of a three-story, 100,00-square-foot retail center. Harmon Avenue is seen in the background.
Thursday, June 3, 2010 | 2 a.m.
A Las Vegas developer has acquired a vacant piece of land at the Las Vegas Strip and Harmon Avenue for $25 million after being deemed the only qualified bidder in a Clark County auction.
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The Strip may not need another hotel room or blackjack table, but apparently gamblers can always use more aspirin.
That’s what the buyer of a 2.16-acre parcel across from CityCenter appears to have been thinking when it paid $25 million for the land in February.
At the time, financial analysts scratched their heads.
The price exceeded by about 300 percent what was considered the going rate for choice land on Las Vegas Boulevard.
It seemed to be an anachronism from the go-go years of the early 2000s.
Contributing to the mystery, the buyer, BPS Partners, which includes developer Brett Torino, didn’t reveal its plans. Was it going to flip it to a deep-pocketed, would-be casino mogul? Was its plan to buy and hold it until boom times return?
Answers came this week.
BPS Partners plans to keep the land and turn it into a three-story, 100,000-square-foot retail center anchored by Walgreens. The Clark County Commission approved use permits Wednesday.
Ground will be broken on the project in the next few months, Torino said.
It’s a project that makes sense in this economy, said John Knott, executive vice president of CB Richard Ellis in Las Vegas, and one of the experts who was puzzled by the land purchase in February.
Such “build-to-suit” developments — constructed with particular tenants in mind as opposed to strip malls built on the hope that tenants will materialize — have fared better during the recession, said Brian Gordon, a principal at Applied Analysis.
“The only use that makes sense at that price was this ... or something similar,” Knott said. “You can’t make sense of new construction of a resort. And look at Carl Icahn, who bought the Fontainebleau and his desire not to do anything with it, because it doesn’t make sense right now.”
Walgreens and other retailers will be across Las Vegas Boulevard from CityCenter, which is seeing business improve.
Neither Gordon nor Knott would declare the small project a green shoot, signaling the beginning of an economic turnaround for the Strip.
“Assuming the plans go forward, it would be one of the few projects to get off the ground,” Gordon said. “It’s a sign that at least someone has confidence in their ability to attract tenants.”
County Commissioner Chris Giunchigliani sees a trend at work, one she thinks will help the local economy. People want not to merely be dazzled by lights and pirate shows, but to be comfortable, too.
“It’s accommodating pedestrian tourists as a service, which we haven’t always had to focus on because we had so much volume,” she said. “But it’s time to bring good service back to the tables, and not just at four-star restaurants. Accommodating the consumer makes good sense for trying to bring back Vegas.”
The Walgreens would be one of a handful of the drug chain’s stores on the Strip — one is near MGM Grand. (A third is on Las Vegas Boulevard at Charleston Boulevard, which is not considered the “Strip.”)
“If a customer in another state is visiting, we want to make it convenient for them to fill their prescriptions at a pharmacy that knows their history, in addition to picking up the essentials, whether it be sunscreen or a bottle of water,” Walgreens spokesman Robert Elfinger said.
Blogs are filled with comments and questions from Las Vegas visitors wondering whether they can find the mundane among the city’s flamboyant attractions.
As one on Yahoo.com put it: “Is there a convenience store on the Strip?”
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I suffered a painful bout of food poisoning during my last stay in Las vegas and the staff at Walgreens were wonderful. I hold that place in high regard.
wonder how they will make the store pay? or is it a matter of we are here and it is advertising, with possible long term asset
Man, $25 million will getcha a helluva lotta aspirin.
Actually there is a Walgreens at the Palazzo which is on the strip..So now there will be three on the strip.
Another example of our "economic diversity" We're on the move now! (sarcasm)
With reasonably priced items from a bottle of anything to snacks for the room this Walgreens will set records in sales. Of course they will be offset by a huge reduction in sales in high priced venues of room service and other items bought in hotel gift shops. Net result for sales will be far less taxes.
Great planning by the builder and the retailer in times where the demographics of the visitors is changing faster and faster to those who want to spend less.
I'm from Australia when I was in Vegas last year I shopped at Smiths is Walgreens like Smiths. Everthing was so cheap at Smiths even beer.
F' Walgreens. Put a Wal-Mart there. A Super Wal-Mart. THEN, our economy will improve. They'll only increase prices on everything in the store to be "comparable" to the other mini retailers on the strip. Wal-Mart's prices, as far as we know, stays pretty consistent and is a more familiar face than Walgreens.
F' Walgreens. Put a Wal-Mart there. A Super Wal-Mart. That idea will introduce more jobs to our city. If they continue with building this Walgreens(which there are currently 2 already on The Strip), they'll only increase prices on everything in the store to be "comparable" to the other mini retailers on the strip. Wal-Mart's prices, as far as we know, stays pretty consistent, low and is a more familiar face than Walgreens.
Hey uaintseeme: I can tell you this' The hotel bosses would never allow a SUPER WAL-MART ON THE STRIP AT ALL. But a Walgreens will not hurt them' That actually benefits the strip hotels customers. Why do you think that they have one inside the Palazzo.
meh.
a guitar center would be way, way, way cooler.
ohhhhh I see a slot machine in aisle #4...no kidd'n
How about Targets and Traders Joes at City Center? Also thinking of expanding Bagel Nosh at City Center. Wouldn't that be great . You come to Las Vegas for shopping bargains. What an experience for that person from Australia!
I won't be able to afford getting my precriptions filled at Walgreens anymore.
A waterpark is what is needed!!!
@uaintseeme. A China-Mart on the strip? Are you serious? Do you really feel there is a need for all that made in China garbage across from City Center? I just don't see lawn chairs and blenders selling very well in that location.
Wallgreens is "anchoring" a 100k sq ft mall? Wallgreens is a good store but I would never consider it an "anchor" in any mall. Maybe this is the face of the new economy and we should be grateful that it's not another 12 story condo unit.
Ah, I see it's an intelligent and informed discussion, as per usual...
Like them or not, Walgreens has recognized an under-served niche not just in Las Vegas, but in almost every major US travel destination. People need easy access to fairly priced essentials while vacationing, and Walgreens is providing it.
@green617. If you have ever seen the line at a "drug store" on the strip on a hot July afternoon, you would understand how Walgreen's can anchor the corner. It will be full with customers, all the time.
it is about time something is done with that land... it has became a trash receptacle for beer bottles and escort cards....
Where will the CVS go,...for every Walgreen's there's gotta be a CVS.
More power to them, a grocery store is what's needed on the strip, you wouldn't believe how many guests ask me where the closest 'grocery'store is at my hotel. I hope they turn it into a 'Super Walgreens' and have everything you can get at Albertsons or Vons.
this is genius. Where do you think all those condo's buyers will go to get groceries? haha. genius
there's a cvs on the strip right next door to City Center Mandarin and there is a walgreens already, half a block away on the same side of the strip, wtf?
MGM puts up $8.5 Billion worth of hotels, and they get a view of Walgreens! Meanwhile, Walgreens puts up $25 million worth of drug store, and they get a view of hotels that look like office buildings. I'm thinking that Walgreens looks a lot less out of place than City Center.
This makes me wonder if they'll be closing the location just half a block south. I know Walgreens likes to open a lot of stores, but within a block of another one? Even Starbucks doesn't go that crazy...
There was a Walgreens near me that opened up one block from another one. They shut the older one down after they had the new one up and running. That's how they roll. Maybe the lease on the other location isn't as firm as they would like.
This will be one of the only Walgreens locations in America whose prices will actually be lower than the competition. The other strip Walgreens is the other one lol!
Walgreen's?
A drug dispensing outlet. How appropriate and convenient this will be for the Strip's clientele.
I doubt if the resort lobbyists would appreciate anything more grocery related on the Strip, as people eating grocery deli items in their rooms does nothing for the hotel restaurants sales volumes.
Now the condo owners at CityCenter will have somewhere to buy groceries. Hope you like stale Easter candy and Gatorade!
Is there a major intersection left in Las Vegas that doesn't have a Walgreens, a CVS or both?
In the early '90s, I worked in the gift shop at a large Strip casino. Each and every day (sometimes several times each day) someone would ask me where the nearest drug store was, because they didn't want to pay ridiculous prices for what they needed (cigs, diapers, bottled water, etc.) at the hotel's quasi-store; or they simply needed items not carried at the hotel (uh, personal lubricant, anyone?). As far as I'm concerned, you can't have too many Walgreens on the Strip.
I have visited & experienced Vegas by myself & with others. You can't really ever plan for the things you forget, but Walgreens has been able to provide them for us - cell charger, antibacterial cream, deodorant, diabetic bracelet......all those things that accidentally get left behind. And it's a lot nicer looking than a garbage filled lot.
It's actually a great idea, and a logical response to the outrageous gouging that debt-laden hotel/casinos perpetrate on their guests!
Perhaps some corporate executive doesn't mind paying $5 for 5 aspirin in the "gift shop" or $20 for a bowl of room service potato chips, but that's not where visitors' heads are at anymore, and won't be again for many, many years.
Just goes to show how out of touch some casino operators really are by letting so many tourist dollars go elsewhere.
Kinda like tax policy: the more you tax, the less total revenue you ultimately receive!
Environ;
Once again your astute business sense comes to the forefront - why on earth would you place a business that will generate income while providing jobs into a piece of land that currently is a cesspool of stripper cards and empty McDonald's cups...how ridiculous for a city that needs revenue of any kind to boost the economy...
All the locations will be staffed by one check out that may or may not speak Englay.
memo from surrounding casino executives:
"whats a matter with these customers, don't they like the $9 travel size aspirin in the gift shop?"
Put a big huge lighted sign there that's blank so everyone stands there looking stupid staring at
it wondering what's going to be there and why is the sign blank.
This plan for a "...three-story, 100,000-square-foot retail center anchored by Walgreens..." is exactly what I said might happen to this property off Harmon about 2 months ago. As some of you might remember, there was similar debate as to what might happend to it because it is a small 2.16 acre parcel.
As I said at the time, Dreamers are the people who made Las Vegas, and someone will find a use for this land. Well, now we know the rest of the story.
As for the bad mouth comments about Walgreens, I believe these are just nothing-better-to-do commentaries.
It appears obvious that the posters, herein, who LIVE IN LAS VEGAS have not noticed that WALGREENS came here in full force about 12 years ago - with the intention of cornering the market for their kind of store.
If you will notice, they are now quite pervasive in Las Vegas, and have accomplished their goal. So, with the new partnership with BPS partners, Walgreens will have a "place in the sun" as, yes, an anchor for this 100,000 sq ft "mall." And they will make money.
And if anyone does not think this is a good move for Walgreens, and BPS Partners - you haven't been inside a Walgreens lately. They offer many things that are either unavailable or over priced in Hotels.
Further, Walgreens sells tourist stuff as well, and we have eliminated most of the small shops that used to sell such items. The Bonanza on Sahara is one of the few remaining places to get such things on the Strip - besides Walgreens.
So I predict a win-win for tourists, residents, and the owners. It's all about marketing.
The Walgreens North of Harrah's has prices comparable to your typical Walgreens in any other part of town. Most folks don't want to put 2 or 2 bucks in a soda machine at the hotel and all to often not get the soda for it. Not to mention that Walgreens is always busy, so the cashflow works from a business point of view.
I imagine they'll sell a lot of beer to those who would rather pay $19.99 for an 18 pack than $8.00 for one beer at the resorts.
reader12, Smith's is much larger than a Walgreens, While Walgreen's is a "drug" store, they do carry a lot of grocery items too.
A great place to get your photos printed quickly too.
Is 3 locations in a mile too many?
I never understood had walgreens could have a high enough profit margin or volume to fill the palazzo spot and now this one. This is some of the most expensive land in all of the world and a place selling things for a dollar can make money there?
Then on the other hand I have always been a big fan of the way walmart operates on such low margin and prices....the difference is that the quality needed for them to break even is always significantly less with the cost of their land???
Who knows??? I have an econ background and this never made sense to me
It makes sense to me. I think they paid too much for the property but they will do killer volume. And it will complement the strip. People generally come with a budget. The money they don't have to spend in a hotel gift shop is money they can use elsewhere. The further their money goes during a stay the more likely they'll want to return.
Somewhat amusing to browse through the comments and then try to understand why some locals have negative reactions to this endeavor. The odds of them actually ever shopping at this Walgreens are probably better than 1 in 5. This is a great idea, and how many of us have thought about getting a cooler, loading it with ice and bottled water, and setting up somewhere on the strip, with images of quick cash in our heads?? Given that, can you imagine the traffic a Walgreens, with ice cold water and soda, will generate? Don't have to go into the casino to pay way too much for water, I can swing into Walgreens, get it cheaper, quicker, and I don't have to wander around trying to find it....Brilliant!!! KUDO's to Brett Torino and the visionaries at Walgreens!!!
Smart....Keep the prices down so a middle class family or couple can hang out on the strip without being fleeced by the big casinos they will be back.Remember these people spend more money here than the high rollers do!!!!
In s.f., I live within 5 minutes of 4 Walgreens. On the strip, as we all know, that particular stretch of the strip is very crowded with pedestrians and Walgreens will get alot of business from hotel guests who do not want to pay exorbitant prices for the items at the casino gift shop.
That Walgreens is a lot nicer than Aria.
With the stock market down over 300 points today, I'm not sure we need a Walgreens. How about some high tech, well paying jobs, (yeah, right!) or a super U-Haul center that will really make some money with an increase in hiring for the folks who are leaving Las Vegas. Now that business will make some money.
Van_Guard said: "With the stock market down over 300 points today, I'm not sure we need a Walgreens. How about some high tech, well paying jobs, (yeah, right!) or a super U-Haul center that will really make some money with an increase in hiring for the folks who are leaving Las Vegas. Now that business will make some money."
To Van_Guard- This is exactly the type of attitude that gives our wonderful town such a hard edge, sure times are tough in the Neon City right now but we had a great ride for a long time and the good times will eventually return, you, my friend sound like one of those types that should find a U-haul rental of your own soon and you don't need a location across from City Center for that!!
My wife and I were just in Vegas for a few days last month and made multiple trips to Walgreens. They had everything we needed - cheap bottled water, snacks for the room, sunscreen, aloe for the sun burn, etc at good prices. This allowed us to stretch our budget and use more money on gambling and shows. And no matter what time of day we stopped the place was full of people. We appreciated it and this new one would have been closer to where we were staying! It was one of the things that made our trip to Vegas enjoyable. This is a good move by Walgreens!
The Strip should have lots of small businesses on the street level: drug stores, 7/11's, fast food joints, electronics stores, delis, bakeries, flower shoppes, dive bars; just like any big city.