Web Site Analytics
MobileRJ | RSS Twitter Twitter FacebookFacebook E-mail Alerts
Home subscribe manage Las Vegas Review-Journal
  Jobs Cars Homes Shopping Travel Weddings Golf Best of Las Vegas Photo   Search:

RECENT EDITIONS
Sun Mon Tue Wed Thu Fri Sat

sponsored by
News
May. 16, 2007
Copyright © Las Vegas Review-Journal

MORE THAN $1.2 BILLION: New Frontier sale sets record

Purchase price goes where no Strip land has gone before

By HOWARD STUTZ
REVIEW-JOURNAL

The 984-room New Frontier will be demolished, and El Ad Properties plans to build a replica of New York's landmark Plaza Hotel, which the company owns, on the 36 Strip acres.
Photo by Craig L. Moran.

An Israeli-owned real estate investment group, in what is being called the most expensive large-site transaction on the Strip, has bought the New Frontier and its 36 Strip acres for more than $1.2 billion, the casino's current owner, Phil Ruffin, confirmed late Tuesday.

Ruffin said El Ad Properties, which controls several landmark New York City buildings, signed the purchase agreement last week for the hotel-casino site.


Most Popular Stories
  • NORM: Details emerge in Jackson probe
  • NORM: When live news shots turn bad
  • NORM: Jackson changes Las Vegas address
  • NORM: Lance Burton renews contract
  • Motorcyclist killed in collision with CAT bus
  • Motorcyclist killed in crash on Blue Diamond
  • Clark County man dies of H1N1 virus
  • ENSIGN'S EXTRAMARITAL AFFAIR: Nevada senator seemed headed for presidential race before scandal broke
  • Motorcyclist killed in crash with SUV at Durango and Sahara
  • Interstate 15 projects pile up




    • Ruffin, a Wichita, Kan., businessman who paid $167 million for the New Frontier in 1998, had been seeking an equity partner to help finance redevelopment of the New Frontier into a 2,750-room Swiss-themed resort.

    He said a $100 million deposit on the deal arrived Monday.

    "We're under contract, and that means we're doing the deal," Ruffin said. "We've been successful with the property, but it got to a point where it was better to let someone else come in and redevelop the site."

    Ruffin had been in negotiations with El Ad since March. An Internet-based real estate Web site reported a deal had been struck to sell the New Frontier to El Ad for $1.5 billion on March 19, but Ruffin denied the reports.

    Ruffin and gaming sources familiar with the deal said El Ad will close the aging Western-themed hotel-casino when the transaction is completed in 90 days. The 984-room New Frontier will be demolished, and El Ad will build a replica of New York's landmark Plaza Hotel on the site.

    El Ad bought the Plaza in 2005 for $675 million and is remodeling the renowned property, which includes converting some units into Manhattan's highest-priced condominiums.

    Ruffin said the 1,000 New Frontier employees were being informed of the sale this morning.

    Phone calls to El Ad officials, whose offices are in New York City, were not returned late Tuesday.

    On its Web site, El Ad estimates its holdings in Manhattan at more than $2.5 billion. In addition to the Plaza, the group owns 21 Astor Place, The Grand Madison and the O'Neill Building.

    "They are setting records for the prices they are getting for the condominiums at the Plaza," said John Knott, executive vice president of the Global Gaming Group from CB Richard Ellis, who was familiar with details of the transaction.

    Ruffin said the deal with El Ad does not include the seven acres on the backside of the New Frontier site which hold the $1.2 billion Trump International Hotel & Tower. Ruffin said the nongaming towers will continue to be owned in partnership with New York billionaire Donald Trump.

    The initial 1,282-unit Trump International first tower is expected to be topped off in a May 25 ceremony and opened sometime next year.

    "Donald has already heard about the deal, and he was thrilled to death," Ruffin said. "This is going to be a really good deal for the towers, and it will help them out tremendously."

    Gaming and real estate analysts have estimated prime Strip land values at between $20 million and $30 million an acre. Recently announced transactions involving the Sahara and land on the north end of the Strip have been estimated at between $17 million to $23 million an acre.

    The New Frontier's acerage increased in value as activity took place on the surrounding properties. Wynn Las Vegas opened in 2005 at a cost of $2.7 billion across the Strip on land that once housed the Desert Inn. Wynn Resorts is building Encore, a $2.1 billion addition to Wynn Las Vegas that is expected to open in 2009.

    On the north side of the Desert Inn Super Arterial, Boyd Gaming expects to break ground next month on the $4.4 billion Echelon on the site of the Stardust, which was imploded in March.

    At more than $1.2 billion, the 36 Frontier acres sold for more than $33 million an acre, which Knott said is the most expensive large-site transaction on the Strip.

    Harrah's Entertainment paid the equivalent of almost $85 million an acre for the 4.3 acre site at the northeast corner of the Strip and Flamingo Road that houses Bill's Gamblin' Hall, formerly known as the Barbary Coast. Harrah's swapped land with Boyd Gaming Corp. for the site.

    Ruffin was ranked 717th on Forbes' global billionaires list in March with an estimated net worth of $1.4 billion. He was considered the savior of the New Frontier when he acquired the casino from the Elardi family.

    The property had been the site of the nation's longest ongoing work stoppage when more than 550 employees, backed by the Culinary Workers Union, walked off the job in September 1991.

    The workers spent 2,325 days on the picket line, going back to their jobs at 12:01 a.m., Feb. 1, 1998, when Ruffin took possession of the casino.

    Over the years, Ruffin had floated several ideas for redeveloping the New Frontier, the most recent being a $2 billion, 2,750-room hotel-casino called Montreux and themed after the Swiss resort near Lake Geneva.

    The property originally opened in 1942 as the Hotel Last Frontier and renamed the New Frontier in 1955. Reclusive billionaire Howard Hughes bought the property for $14 million in 1967 and dropped "New" from the hotel's title. The Frontier was controlled by the Summa Corp. before it was purchased by the Elardi family. Ruffin added the "New" back to the name.

    The New Frontier launched the Las Vegas career of Elvis Presley, who played his first-ever show at the casino on April 23, 1956. The Frontier was the site of the final performance of Diana Ross and The Supremes on Jan. 14, 1970.

    Magicians Siegfried and Roy had a seven-year run at the Frontier starting in 1981 in "Beyond Belief." The show racked up 3,500 performances for more than 3 million showgoers before the duo signed a $57.5 million deal with casino developer Steve Wynn to perform at The Mirage.

    More recently, the New Frontier has been known as the home of Gilley's Saloon and Dance Hall, which features bikini bull riding three nights a week and live mud wrestling twice a week.

    Newsvine Digg Fark Technorati reddit StumbleUpon del.icio.us Slashdot Propeller Mixx Furl Twitter MySpace Facebook Google Bookmarks Yahoo! Bookmarks Windows Live Favorites Ask MyStuff myAOL Favorites

    Leave Your Comment 18 Reader Comments
    Terms & Conditions
    The following comments are provided by readers and are the sole responsiblity of the authors. The reviewjournal.com does not review comments before publication nor guarantee their accuracy. By publishing a comment here you agree to abide by the comment policy. If you see a comment that violates the policy, please notify the web editor.

    Some comments may not display immediately due to an automatic filter. These comments will be reviewed within 48 hours. Please do not submit a comment more than once.
    Current Word Count:

    Note: Comments made by reporters and editors of the Las Vegas Review-Journal are presented with a yellow background.

    Kaylan The Vegas Fan wrote on November 16, 2007 07:46 PM: It's been two months since anybody has posted a comment. As a canadian, I have been a fan of the Vegas Strip, since I took a trip there in August. I am 9 years old. On my trip, I never saw the New Frontier. But I am sad about the closure and implosion. And for anybody who wants to avenge the New Frontier... I will be happy.


    william wrote on September 25, 2007 11:25 PM: I am a deaf New Froniter hotel guest since I was little girl around 1960 until July, 2007. I was very much shocked to learn that New Froniter hotel was closed last July, 2007. I was lucky to stay there before New Froniter hotel was closed. I never forget their New Froniter hotel employees who treated me as a good guest for many years. I still cried so hard and missed so much with nice and sweetie New Froniter hotel place. I want to thank to New Froniter hotel employees who were treated wonderfully to me as a deaf guest for many years. I never forget their wonderful, and patience treatments for many years. I was lucky to take many inside New Froniter hotel pictures to remember forevermore. I love New Froniter hotel rather than any other Las Vegas hotels in my lifetime. I do miss New Froniter hotel in my lifetime.


    william wrote on September 25, 2007 11:18 PM: I am a deaf guest at new Froniter hotel since I was little girl at 10 years old. I was very lucky to stay at New Frontier hotel last July,2007 before the hotel was closed. Of Course, I never forget their wonderful services as they treated me as a good deaf guest for many years. I love the New Froniter hotel rather than other Las Vegas hotels for many years. Of Course, I was so much depressed and cried and missed that the New Froniter hotel was closed last July, 2007. I feel that the New Froniter hotel was worth place to remember forevermore. I have to accept to learn that the New Froniter hotel was closed. I was lucky to take many pictures inside New Frontier hotel places for many years so I can remember their inside nice places. I love the New Froniter hotel in my life time. I never forget their New Froniter hotel employees who were wonderful and patience with me as a deaf guest. I do miss New Froniter hotel in all of my lifetime.


    william wrote on September 25, 2007 11:17 PM: I am a deaf guest at new Froniter hotel since I was little girl at 10 years old. I was very lucky to stay at New Frontier hotel last July,2007 before the hotel was closed. Of Course, I never forget their wonderful services as they treated me as a good deaf guest for many years. I love the New Froniter hotel rather than other Las Vegas hotels for many years. Of Course, I was so much depressed and cried and missed that the New Froniter hotel was closed last July, 2007. I feel that the New Froniter hotel was worth place to remember forevermore. I have to accept to learn that the New Froniter hotel was closed. I was lucky to take many pictures inside New Frontier hotel places for many years so I can remember their inside nice places. I love the New Froniter hotel in my life time. I never foreget their New Froniter hotel employees who were wonderful and patience with me as a deaf guest. I do miss New Froniter hotel in all of my lifetime.


    kp bear (scotland uk) wrote on June 09, 2007 08:33 AM: just read the news, sad, sad. iv'e been visiting vegas every year since 82 and stayed in the frontier and so have my family.yes this old timer will miss it.


    ART SOUTHWICK wrote on June 06, 2007 12:25 PM: BEING A BORN AND RAISED RESIDENT SINCE 1950 IT IS HARD TO SEE OLD VEGAS GO AT SUCH A RATE. I LIKE THE NEW VEGAS TOO HOWEVER AND THE ECONOMY HAS ALWAYS BEEN THE BEST, AND IS ALWAYS GETTING BETTER. TRAFFIC AND ALL THAT GOES WITH IT IS JUST GROWING PAINS OF ANY MAJOR CITY WHEN IT IS GROWING AT SUCH A PACE. I AM SAD AND HAPPY AT THE SAME TIME.


    Frank wrote on June 05, 2007 08:29 PM: Another hotel gone for the average player. I have enjoyed the New Frontier for the past several years. Vegas will soon be a city for only the wealthly. The day will come when they wished they had the average player back.


    Len wrote on May 28, 2007 04:24 PM: I'm sorry to see the hotel go. My wife and I have visited for the last 20 years and have many pleasant memories. Also sorry to see the ownership go to foreigners.


    A former worker wrote on May 18, 2007 11:58 PM: I would like to thank the Frontier for the 17 incredible years; from 1989 to 2005. I was a striker at the Frontier too. We will all miss you a lot.


    vegas international wrote on May 17, 2007 11:04 AM: soon will having to japanese hotel, chinese hotel, Korean hotel,Hong kong hotels on north west of strip .wait and see it.


    Read All Comments