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real estate downtown project adds another piece of fremont st. By Eli Segall staff writer Tony Hsieh's Downtown Project bought the shuttered Western Hotel for $14 million, giving his group another chunk of downtown real estate for a possible future project. The resort, built in 1970 on Fremont Street between Eighth and Ninth streets, was closed last January by owner Tamares Real Estate. Tamares sold it in March to a limited The amount of money liability company Tony Hsieh's Downtown controlled by de- Project plans to invest in downtown real estate. veloper Andrew Donner. Donner works with Hsieh, the CEO of online retailer Zappos, to acquire properties for Hsieh's $350 million downtown revitalization campaign. The Downtown Project acquired the Western through Donner, people with knowledge of the deal said. "It's definitely in furtherance of Tony Hsieh and his vision," said Harry Braunstein, a lawyer for Tamares. Hsieh's group plans to invest $200 million in downtown real estate. Last year, it bought at least 8 acres between Las Vegas Boulevard and 11th Street for about $19.5 million. "If you look at what they're doing, they're trying to buy everything on Fremont Street," said real estate broker Brandon Wiegand, of Focus Commercial Group. The low-end Western, known for its cheap slot machines and table games, had 90 employees and 15,000 square feet of gambling space. It closed Jan. 16, 2012, after more than 40 years in operation. The casino and cafe were run down, cigarette burns and beer stains marred the gambling tables, and police often congregated outside. New York-based Tamares still owns other real estate downtown, including the Plaza and retail property in the Fremont East District, including the Le Thai restaurant building. $200 million STEVE MARCUS property mogul: The view from Zappos CEO Tony Hsieh's home at the Ogden looks out over downtown Las Vegas, where Hsieh's Downtown Project has invested about $93 million in real estate holdings that, viewed from above, resembles the shape of a llama. Piecing Together A $93 Million Llama 80 property purchases all part of Zappos CEO's vision for city's core By Joe Schoenmann staff writer The purchase of downtown — well, a good bunch of it, anyway — is almost complete. Downtown Project insiders call the mass of land stretching over several blocks from Las Vegas Boulevard to Maryland Parkway "the llama," because that's what it sort of resembles from space. For landowners who have held onto property, the purchases have been a monetary boon. The Downtown Project, whose principals include Tony Hsieh, the Zappos CEO whose redevelopment vision of downtown began when he announced in 2010 he would move his company headquarters there, in some instances is paying premium prices for the land. Though the purchases are not entirely complete, the Las Vegas Sun, a sister publication of VEGAS INC, | 15 APRIL 2013 20130415_VI07_F.indd 7 | scoured property records from Clark County Assessor's records to find what has so far been recorded in the area and around Fremont Street from Las Vegas Boulevard to 11th Street and almost Maryland Parkway. We may have missed a few not yet recorded (it can take up to six weeks for a deal to show on the county site) and at least a few more purchases are possible, sources say. We found 80 parcels purchased by different entities, all under the umbrella of Downtown Project partners, for about $93 million. The purchases totaled roughly 28 acres or an average of about $3.3 million per acre. The old Las Vegas City Hall, which Zappos will occupy as its headquarters this fall, is not included because Zappos is leasing the property from Resort Gaming Group, which bought it for $18 million. Hsieh said the idea behind the real estate is to "help create a walkable city." "In order for downtown to be walkable, you need connectivity and activation of things like retail, parks, restaurants and bars all within close proximity to each othsee llama page 12 7 4/11/13 2:48:17 PM