Partnership to Buy High Rise Condo Hotels in Las Vegas

What do you do if you want to enter the Las Vegas high rise condo hotel market but don't have all the money you'll need to do it all yourself? Just partner with someone who does. That's what former timeshare developers Stephen Cloobeck and Steven Molasky have done by forming a partnership called Cloobeck Molasky Partners LLC that specializes in developing high-rise residences on and by the Las Vegas Strip.

Wouldn't it be great to have friends like that? For most people, they need to partner up with friends, family, and fools just to launch their own companies on a shoestring, but the two Steve's intend on building 600 condo units at Station Casino's Red Rock Resort in Summerlin and are actively looking for other sites to build on as well.

It took the partners a year and a half to move forward with the partnership idea. They just responded to a "Request for Proposal" (RFP) from Station Casinos and somehow their condo proposal won out over several other residential home builders trying to capitalize on the high-rise market here in Vegas. Of course Station Casinos won't say who the other developers were that lost, but it wouldn't surprise me if we were to find out that Station Casino's Chief Financial Officer Frank Fertitta plays golf with Cloobeck and Molasky... or perhaps are childhood friends... or whatever.

While the company will begin taking reservations in the next 6 to 9 months, prices for the new condo units haven't been determined yet, but most likely will be in line with the current high rises selling on the Strip. The completion date of the $925 million condo project is scheduled anywhere from late 2007 to early 2008, although the Red Rock Resort is scheduled to open late in the second quarter of 2006.

But if you're a developer, don't fret - Station's is thinking about more deals like this at some of their other casino properties such as Sunset Station, the proposed Durango Station, or even the Wild Wild West Station.

It's supposedly a level playing field, so you better form that partnership quick and keep your eyes out for the fine print in the newspaper for that next RFP. Perhaps you'll get the next sweetheart deal that Cloobeck Molasky Partners won out on this time.