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Jun. 13, 2007
Copyright © Las Vegas Review-Journal

New Frontier owners to seek funding; hotel to close July 15

By HOWARD STUTZ
REVIEW-JOURNAL

The New York-based private-ownership group buying the New Frontier's 34.5-acre Strip location is expected to seek financing from Israel's largest investment company for up to $8 billion to redevelop the site.

Meanwhile, a spokeswoman for the New Frontier said Tuesday the 984-room Western-themed hotel-casino will close at midnight July 15.

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    • Elad Group, which is controlled by Israeli billionaire Yitzhak Tshuva, said in May it would pay more than $1.2 billion for the New Frontier site and spend $5 billion more to construct a replica of New York's famous Plaza Hotel. The complex would include a casino and a hotel with 3,500 rooms and 300 private residences.

    Published reports in Israeli media said the cost of the New Frontier redevelopment would be between $6 billion and $8 billion, which includes the price of the land. The New Frontier will be demolished in favor of the ultraluxury, mixed-use development.

    Israeli-based business and real estate publications reported Tuesday that Elad has asked IDB Development, which is headquartered in Tel Aviv, Israel, to help finance the project. IDB bills itself as Israel's largest investment company, with holdings throughout the country and overseas.

    IDB and Elad would each own half of a joint venture in the New Frontier site.

    According to Globes online, IDB is providing financing for two other Las Vegas projects, the Village at Queensridge, a mixed-use development, and One Queensridge Place, a high-rise residential development.

    Deutsche Bank gaming analyst Bill Lerner said it appears the plans for the New Frontier site have grown. Globes reported that the project would also include a retail shopping center.

    Lerner said the developers would attempt to make back some of their investment through sales of the residential components and the retail offering.

    Elad is spending $400 million to redevelop the Plaza Hotel in New York, which it bought for $675 million in 2005. Some of the revamped Plaza's units are being converted into Manhattan's most expensive condominiums.

    Lerner estimated Elad is getting up to $6,000 a square foot for some of its condominiums. In Las Vegas, some of the high-end residential units at MGM Mirage's CityCenter are selling for more than $2,000 a square foot.

    "I'm not sure what their expectations are in Las Vegas, but we've seen what the Elad guys are doing in New York," Lerner said. "The scope of their development has changed and it seems like there might be more in the pipeline than they have previously announced. The assumption is they would help bring down the development costs through the residential or retail sales."

    The New Frontier is operated by Kansas businessman Phil Ruffin, who bought the casino in 1998 for $167 million, but was never able to find an equity partner to help redevelop the site.

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    Bob wrote on July 12, 2007 10:27 PM: I live in Los Angeles, and heard the Frontieer was holding a auction to sell the contents of their stuff. is this true? any websites to go to see when its going to happen? Any help Thanks


    Mike T, London, UK wrote on June 21, 2007 01:56 PM: I read that Gilley's is hosting a farewell party on July 7th, the day I arrive in LV for vacation, but jet lag will pretty much put paid to any hopes of attending this event.

    Does anyone know if this is the last night Gilley's will be open for business? Or will it continue normally until the remainder of the Frontier closes on July 16th?

    Anyone know? Thanking you.

    Best regards, Mike T - an anxious Limey


    bigplayer wrote on June 21, 2007 06:23 AM: Good Riddance! What a sweaty dump!


    Jeff wrote on June 20, 2007 09:21 AM: I think there will always be affordable off-strip Casinos like the Station Casinos and Orleans, but the small ones on the Strip will be gone forever. Las Vegas better watch it, Atlantic City is in the middle of a huge revitalzation that could keep people like me on the coast instead of hopping a plane..How many multi-million dollar condos can you possibly sell??


    Kathy wrote on June 18, 2007 02:08 PM: Wow, What are we going to do. no more smaller casino's. I just loved the Frontier and sure am going to miss all the friends I have made over the last 20 years. Still can't believe it.


    LC wrote on June 16, 2007 09:07 AM: Sad that all the classic ones are gone now. What will happen with Gilley's? Will the mud wrestling be lost in favor of proper, family friendly entertainment?


    LORRAINE HARNISH wrote on June 15, 2007 07:27 PM: I HAVE STAYED THERE DIFFERENT TIMES. LOVE THE SMALLER HOTELS. YOU DO NOT GET LOST IN THEM. A SHAME ANOTHER ONE IS GOING. THE NEXT IS MY FAVORITE IMPERIAL PALACE. HOPE TO STAY THERE AT LEAST TWICE MORE BEFORE THEY IMPLODE THAT. I AM ON A FIXED INCOME ,STILL PAYING FOR LAST TRIP. LOVES TOU ALL. LORRAINE HARNISH.


    adam wrote on June 14, 2007 04:17 PM: Another casino bites the dust. I was never a huge Frontier fan, but there is going to be nothing left of Las Vegas. Just a bunch of monster casinos.


    clyde carnes wrote on June 13, 2007 11:15 AM: what happen,s to the employee,s that loose job,s. do they get help finding new job,s or are compensated or just let go?