A complex occupied by Walgreens near the Las Vegas Strip is selling for $57 million

During the real estate craze of the mid-2000s, when developers drew up plans for waves of skyscrapers in Las Vegas, one was drawn up across from the Sahara Hotel.

“In Las Vegas, size matters,” said a press release about the Ivana Trump branding project.

The skyscraper, like most of that era in southern Nevada, was never built. But a project that was later built on the site has now changed hands.

A shopping complex occupied by Walgreens on the northeast corner of Las Vegas Boulevard and Sahara Avenue recently sold for $57 million. It spans 37,499 square feet and is 42% occupied, according to brokerage firm Colliers International.

The pharmacy chain is the only tenant in the building. According to a resort brochure, Walgreens’ lease runs through the spring of 2040.

Colliers announced the deal last week, saying he was representing the seller. The purchase, by Kingsbarn Realty Capital and developer Eli Applebaum, closed Feb. 14, property records show.

Drugstores on the Strip are known for selling food, liquor, shot glasses and more, and given the masses of tourists walking around, that’s big business. Walgreens and CVS locations on Las Vegas Boulevard are seeing huge sales numbers, real estate brokers said, and landlords have paid big bucks to own the properties.

The latest for sale is not a stand-alone pharmacy, nor technically on the Strip, north of Sahara Avenue within the Las Vegas city limits.

But it’s across from the northern edge of the famous Casino Corridor, an area that’s seen its busiest activity in years. And it’s at a busy intersection reserved for a pedestrian bridge that could funnel more people into the complex.

In an interview Friday, Kingsbarn CEO Jeff Pori highlighted the surge in activity along the North Strip, such as last year’s opening of the $4.3 billion Resorts World Las Vegas and the debut planned for the end of 2023 at the 67-storey Fontainebleau Las Vegas.

Pori also said the new pedestrian walkway – envisioned as an elevated loop around the intersection – would improve circulation and walking.

The city of Las Vegas unveiled plans for the bridge in November, saying the project is expected to be completed by the end of 2024.

For now, the new owners plan to lease the available space in the resort and replace the existing electronic billboard out front with a large 4D billboard, which Pori says will feature a video that “looks like something that jumps out at you.”

Nevertheless, past plans for the site called for something much larger than what exists today.

According to published reports, an Australian duo unveiled plans in 2004 to build a condo tower there called the Summit. In 2005, Donald Trump’s ex-wife, Ivana Trump, joined the project which was then called Ivana Las Vegas.

City records showed that the proposed tower would have been 73 stories high; press releases described Ivana’s project as 80 stories.

Either way, it would have been huge, even if ultimately it wasn’t built.

The approximately 2 acres of land was sold in 2007 for $47 million. The economy quickly collapsed and the site changed hands in 2010 as part of the foreclosure process, according to property records.

According to Colliers, the resort anchored at Walgreens was built in 2015.

A pharmacy is not as flashy as a luxury skyscraper. But no one has built residential high-rises in Las Vegas for more than a decade, and as the recent sale shows, there’s still plenty of money to be made with toothpaste and the like.

Contact Eli Segall at [email protected] or 702-383-0342. To follow @eli_segall on Twitter.

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