The Raiders are still a few years away from stepping into their new home stadium and throwing the football in Las Vegas. But a group of investors are getting in on the National Football (NFL) team’s vicinity early – and it paid a premium price for the real-estate property.
Global Trust Group this week purchased a vacant 2.5-acre property on Hacienda Avenue, just north of where the Raiders planned to erect their multi-million stadium. The $7.25 million real-estate land property sale closed on Monday, August 21, the records show.
That amounts to $2.9 million per acre — around six times the average selling price for a Southern Nevada real-estate property in the second quarter, as monitored by brokerage Colliers International.
Listing broker Bill Lenhart told The Centrio News the investor group were never certain on their purpose for the area. Lenhart added that one reason Global Trust trumped out other bidders was that it did not have an entitlement contingency, or a prerequisite that it would finalize the deal after it acquired project authorization approvals from the Clark County.
A sign for the company at its newly bought real-estate property declares it a “development site.”
“Create and defend wealth,” the Global Trust slogan says.
Lenhart, the founder of Sunbelt Development & Realty Partners, said that he received offers from seven qualified prospective investors, or those who supplied proof of funds, and some from other people who “were not so qualified.”
The Raiders is highly anticipated to start the mega-construction of their 65,000-seat domed home stadium in January and expected to be finished by mid-2020. According to Lenhart, investors were interested in his client’s parcel because of the football team’s pending arrival. “It just shined a light on it,” he said.
Investors also have been eyeing a property close to Global Trust’s: a 1.8-acre spread. ABC Land & Development sued the owner, Itai Investments, back in late June in Clark County District Court.
ABC Land & Development said it reached a deal effective on March 30 — three days after the NFL owners approved the Raiders’ move from Oakland to Las Vegas — apparently to acquire the land property for $3.2 million.
However, Itai “has failed and refused without just cause or reason” to abide with the terms of the sale and finalize the transaction, ABC said.
It’s still indeed too early to say whether the Raiders will spark a real estate property jackpot. There are a number of vacant parcels near the stadium location, but the district is nearly wholly built out, mostly with industrial and commercial properties.