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IN BUSINESS THE ECONOMY Millionaire Sells Mansion To Ruffin By Buck Wargo staff writer When Eric Petersen came to Las Vegas from Northern California in his Volkswagen van in 1991, he quickly learned it was the land of opportunity. Calling himself broke when he arrived 20 years ago, the 44-year-old Peterson said he built his wealth into the low nine-figure range. But the recession and collapse in the real estate market has cost Peterson 80 percent of his wealth, and he’s had enough. “I’m not long to lose any more money,” Petersen said. “I’m getting out with some.” Petersen, who was recently featured in a national media story about the very wealthy leaving their Las Vegas mansions just left his. Bought in 2004 for $14 million, Peterson sold his 11-acre estate built by Prince Jefri Bolkiah, brother of the Sultan of Brunei. His sale price was $15 million after it was listed—last year— at $37.5 million. The purchaser was Treasure Island owner Phil Ruffin, who knows a thing or two about buying value. No real estate agent was used. Petersen made his money making referrals to brokers on commercial real estate deals; he also operated a catalog merchandising company he shuttered three years ago. “I was in the right place at the right time and made a lot of money in real estate and subprime credit,” Petersen said. “It all collapsed, and I’m recovering as much as I can.” Petersen liquidated four other residential properties he owned in Las Vegas, and has commercial real estate holdings of office and retail-mixed use. He has a hotel he plans to dispose of. He said the decline in real estate values has made owning commercial real estate much less profitable. But it’s his former mansion that has gotten public attention. Petersen said it’s costly to maintain and said he doesn’t need as much space because he’s been dealing with health issues. “Before you could entertain and hold parties and do business deals. It was a storefront as much as a place to live, but there’s nothing going on today,” he said. Since he bought it, Petersen said he’s put about $20 million into the property to improve it. It has $6 million in landscaping alone, featuring a rose garden with as many as 3,000 roses blossoms per year. If someone were to replicate the home today, it would cost $60 million in construction and land costs, which means it sold for 25 cents on the dollar, Petersen said. The property on Tomiyasu Lane measures more than 71,000 square feet with 18 bedrooms, nine bathrooms, an 11-car garage and 10-stable horse stall. The property has an 80-foot-by-40-foot swimming pool, a tennis court, indoor basketball court, gym, sushi bar, disco, formal ballroom and $1 million office. The mansion is a combined 50,000 square feet with two separate buildings that are connected by an underground tunnel, Petersen said. Although he has a home in Beverly Hills, Petersen said he plans to buy another house in Las Vegas at some point because of his business interest. He says he will rent for now. Petersen said he still loves the city but misses the old Las Vegas. Casinos don’t make the little guy feel like the big guy any more, he said. Another trouble on the horizon he said is how Macau will have the same effect that riverboats and Indian casinos are having on Las Vegas. “I think the future of Las Vegas is dead,” Petersen said. “We’ve lost our competitive edge because gaming is everywhere, and the American people don’t need to come here to gamble any longer.” Clouds are for rainbows. Get your Grid on. getmygrid.com 12 | 16 MAY 2011 |