LOS ANGELES—July 17, 2007—Los Angeles-based CIM Group, a national real estate company known for its district approach to urban investments and developments, is entering the downtown Las Vegas market with the acquisition of the 631-room Lady Luck Hotel and Casino. CIM Group has formed a joint venture with the seller, Downtown Resorts, and is currently working on its plans for the hotel and casino property. In addition, the City of Las Vegas will consider on July 18 assignment of the Exclusive Negotiation Agreement for the nearby 5.5 acre parcel, which had been awarded to Downtown Resorts, to the joint venture so the company can also create a development plan for the site that includes the historic renovation and museum planned for the former post office building.
"Over the next several months our team of architects and real estate professionals will be developing a plan for both properties that will engage Third Street and spark renewed vitality in the downtown district," said John Given, principal, CIM Group.
The Lady Luck Hotel and Casino has been closed since early 2006 and the interior spaces largely demolished in preparation for renovations. Set on 6.27 acres at 3rd Street and East Ogden Avenue, the development is comprised of two towers - the 17-story East Tower built in 1985 with 297-hotel rooms on floors 3 - 17; and the 25-story West Tower with 334 hotel rooms on floors 6 - 25. The East Tower is connected to a 53,730-gross-square-foot ground level casino. The property is served by a four-level parking garage and features several restaurants and entertainment venues along 3rd Street. These popular establishments include Triple George Grill, Sidebar and Hogs & Heifers.
"This submarket of Las Vegas attracts between 17 to 22 million annual visitors and has great freeway access and visibility. We look toward carving out a unique visitor and resident submarket where Las Vegas' emerging urban lifestyle can be fully expressed," noted Given.
The City of Las Vegas has made a commitment to the redevelopment of the downtown district as evidenced by its investment in Union Park and in the renovation of the historic post office building as the Mob Museum located on a the 5.5-acre site directly north of the Lady Luck. CIM Group will assume responsibility for creating a development plan for the surrounding properties that will highlight the new museum and lend critical mass to the entertainment and retail experience downtown.
"The support of city leaders is critical in any urban district renaissance and is one of the factors that influenced our investment in downtown Las Vegas. It is important that the public and private sectors have a shared a vision that allows them to move forward in tandem," he added.
CIM Group will continue working on a master plan concept for the downtown properties that will be presented to the city in early fall.
CIM Group's acquisition of the Lady Luck Hotel and Casino was made on behalf of the CIM Fund III, L.P. This fund was formed in 2006 and is a continuation of CIM's opportunistic urban investment strategy initiated in 1993. CIM has systematically developed and refined its urban investing discipline over the last 14 years.
About CIM Group
Founded in 1994, CIM Group is a full-service private equity real estate investor. The company applies its multidisciplinary expertise in the areas of investment and development, mezzanine financing, fund management, commercial leasing and property management. CIM has successfully identified and invested in some of the most vibrant transitional urban districts in North America based on its integrated approach to investing that utilizes its broad based in-house capabilities and deep market knowledge.
CIM specializes in high-density urban communities, bringing its extensive real estate experience to a diverse array of asset categories including mixed-use, office, retail, hotel, entertainment and multifamily. Headquartered in Los Angeles, CIM maintains regional offices in San Francisco and Bethesda, Maryland. More information on CIM can be found at cimgroup.com.