Thursday, July 17, 2008

Lake Las Vegas Goes Bust

Following on my LVW column's theme of questioning the idea of having anti-Vegas vacations in Vegas at such places as the Trump, there's news tonight that Lake Las Vegas Resort has declared for Chapter 11 bankruptcy protection.

This actually isn't really so much a tourism story as a real estate one. They just haven't sold enough of the homes and, in this market, they likely won't for the near future. This press release linked here indicates that the region's owners took control in January after the prior owners defaulted on $540 million in loans last year. The new operators insist that this will "reinvigorate Lake Las Vegas as a premier master-planned community." Okey dokey.

I've always been baffled by the resorts out there and why anyone would come to Vegas for a lakefront vacation. Montelago Village, the shopping district, has been utterly empty whenever we've been down there. I had taken to referring to the Starbucks down there as the lowest-grossing Starbucks in North America and have been waiting to see if it'll be one of the 600 closed in the coffee giant's restructuring. We shall see...

5 comments:

Don said...

Well, Steve, you don't have to wait to find out if that Starbucks will close. The complete list is on the Strabucks website. I only see one closure for Henderson, and I don't believe it is at Lake Las Vegas. Check it out.

Gekko said...

Here is the link

http://www.starbucks.com/aboutus/USStoreClosureInfo.pdf

dan said...

too bad, lake las vegas is such a nice area....

THE STRIP PODCAST GUYS said...

Ahh, gekko - yes. I saw that in the R-J today. the LLV Starbucks is not among the losers. Surprising, actually.

Dan: well, it's not going anywhere. It's just not doing well. So long as Celine Dion owns down there, rest assured they won't be draining that lake!

Anonymous said...

Transcontinental defaulted after it prepped 400 acres for development, the market collapsed, and the individual home builders didn't pay their options on the property. Credit Suisse was the lender, and brought in the Atalon Group, a holding company of a an investment group that CS heads, that specializes in turnaround for large scale developments. Chapter 11 is reorganizational bankruptcy, so obviously part of the plan. A little delay of game to spread out payments. Market/ecomomy turns around they'll have 400 acres ready to go.