Two Way Hard Three | Las Vegas Casino & Design Blog

October 11, 2009

Fontainebleau Worth Finishing?

Posted by Hunter

Pulitzer Prize winning journalist Alexandra Berzon, in her new gig as a WSJ reporter, has a story up on WSJ.com discussing the Fontainebleau project on the North Las Vegas Strip.

The story examines one of the most looming issues for FBleau - there are potential bidders but the place will need $1.2 to $2.0 billion in work before it can welcome any guests - the numbers just don't pencil out.

That location, without all of the other projects that are now delayed or shelved, combined with the collapse of the condo market, means that the project is worth a mere fraction of what it would have been.

Prospective buyer Penn National Gaming may be ready to submit a bid - and it may be as low as $300 million.

We'll see how this all shakes out.

http://online.wsj.com/article/SB10001424052748704882404574465874047672190.html (Subscription Required)

I can't really imagine a scenario in which the project is imploded for a re-do - even at close to zero, it seems it would be cheaper to buy this and finish it... right?


Categories: Business of Gaming, Casino Design, Fontainebleau
Tags: fontainebleau, lasvegas, vegas


Comments

Read archived comments (8 so far)
October 11, 2009 8:43 PM Posted by Jeff in OKC

I think an implosion or an accidental fire of massive size would be a community service :-). You know how they always talk about the problems with the Aladdin/Planet Hollywood that make it almost impossible for it to work? I think Fbleau is going to have 10 times the difficulty. If Penn buys this they'll be bankrupt in 36 months, IMO.

October 11, 2009 8:45 PM Posted by Hunter

Well, the Vegas World fire was always pretty suspicious... You never know...

October 12, 2009 8:46 AM Posted by SouthLooper

I feel sorry for the residents of the Turnberry condos next door. It was bad enough they lost their view and got stuck with the garage on their side of the FBlue property. Now they have an abandoned monstrosity, and have to fear a fire, demolition, or years of construction delays.

October 12, 2009 8:48 AM Posted by Hunter

The conference center / garage complex is HUGE - it totally blocks their view to the point that living there must be a joke now. It's ridiculous. No wonder they're suing.

October 12, 2009 10:13 AM Posted by parchedearth

Not sure the story broke any new ground not already discussed on this site or in the LVRJ. The unfinished construction is already starting to incur millions in maintenance/repair costs (e.g. broken/blown-out windows).

Has anyone seen a detailed breakdown on how many floors have wallboard and/or fixtures installed, the status of the retail and convention space, etc...?

A fire wouldn't work in this case. The superstructure would still remain and be a terrible eyesore.

October 12, 2009 10:59 AM Posted by mike_ch

I find the Turnberry/FB situation not nearly as horrible as the Jockey Club/Cosmo one. Anyone with a window facing south now has a window facing an air vent or something equally unappealing. South-facing JC2K's must look like the set of Aliens right now and in the foreseeable future.

October 12, 2009 12:52 PM Posted by Jeff in OKC

Sounds like an ideal location for the "VegasVision" television system mentioned last week.

October 12, 2009 3:34 PM Posted by David McKee

I've seen photos of the F'bleau pool take, supposedly taken at the end of May, that show it as being very far from completion. That "70% finished" figure we've been hearing may be optimistic.

As for the infamous garage, I was at a Stirling Club media event, stepped out on the westward-facing veranda and was rendered speechless by the enormity and indescribable fugliness of that structure. Not only has Soffer severely diminished the value of what used to be Strip-facing condos in Turnberry Place by erecting this eyesore, it's as though he's giving the unit holders the finger, just to rub it in.