VEGAS, Nev. - The Golden Palm Hotel is in its
property's owners, who tried and failed to redevelop
the Golden Palm for the past seven years, decided to
close the property March 12 and sell it by sealed bid
April 5. The property's casino has been closed for more
than a year.
Golden Palm's site, on a 3-acre island on the southeast
corner of Tropicana Avenue and Dean Martin Drive, made
expansion difficult; the property is bordered by a flood
channel to the south and Interstate 15 on the east.
land the Golden Palm is on was appraised at $46.6 million
in November. The property, which is in the gaming enterprise
district, now has Clark County approval for a 41-story
hotel tower with 560 rooms, 100,000 square feet of shops
and restaurants and a 31,000-square-foot casino.
official for Gold Rush Casino & Hotel, Golden Palm's
parent company, said rising construction costs and failure
to line up a joint venture partner prompted the property's
Realty Advisors, a Chicago-based real estate firm, is
handling the sale, which has been advertised globally
in The Wall Street Journal and through direct mailings
to high-income investors and commercial and real estate
Executive Managing Director Evan Gladstone said the
company has received 95 inquiries about the property.
Gladstone said the 150-room, six-story hotel is a "tear-down
property" and that the land will have to be scraped
clean and development started from scratch. He said
the company will hold a bid seminar for the property
March 16 at Wynn Las Vegas.
Rush President and Chief Executive Officer Marvin Lipschultz
said the property will not necessarily go to the highest
bid but to the bid that best fits the property. He added
that the property could be sold outright or could be
part of a joint venture with the current owner.
someone put up $30 million and wanted me to absorb the
rest, it might be something I looked at," Lipschultz
believes that only a boutique project would work on
the small parcel in the current market. He said his
earlier plans for a 20-story hotel-casino called South
Beach collapsed as building and construction costs rose.
like to get a four- or five-star hotel," Lipschultz
said he wasn't willing to go into debt, so he started
looking for joint venture partners a couple of years
ago. The inability to expand the land into neighboring
properties kept many possible joint-venture partners,
including Station Casinos, away, Lipschultz said.
hotel was built in 1980 and operated by Travelodge and
then Howard Johnson. Lipschultz bought the franchise
in 1999 for $6.5 million. Two years later the underlying
land was purchased for $3.7 million and the name was
changed to Golden Palm.
said he last tried for a joint venture in November 2005,
joining restaurateur Charlie Palmer in a plan to develop
the property into a large boutique hotel. The project
collapsed four months later over financing. Gold Rush
sued Palmer in District Court in August.
failed deal forced the surrender of the property's gaming
license, shutting down the property's 56 slot machines
in January 2006.