Has Starwood Pulled out of W Las Vegas High Rise Condo Hotel Project?

Edge Resorts, developer of the W Las Vegas on Harmon Avenue, has hired Credit Suisse Group of New York to explore "strategic partnerships" in the $1.7 billion mixed-use project. And why? Because it's widely rumored that Starwood Hotels has pulled out of the project. If true (and judging from the actions of Edge Resorts it certainly seems to be the case), this signifies a major obstacle to the viability of the W Hotel high rise condo project in Las Vegas.

And while the 46-acre property supposedly is not for sale, Edge Resorts claim they have plenty of investors interested in purchasing the land, including lodging operators, private equity partners, financial sponsors and real estate developers. Of course they all go unnamed... either way, it's a bad sign for the fans of the "W".

With Strip land going for $8 million to $10 million an acre, Edge Resorts is still in an enviable position. Condo unit holders are not. The "W" is no longer taking unit specific reservations for condos after selling out the first two releases. Now, they're putting potential purchasers on a priority waiting list, which means they're trying to buy some time while they figure out what's going to happen.

Anything can happen, but Starwood pulling out of "W" is in no way a good sign for "W" high rise condo purchasers. Projects that have already begun construction and moving along nicely, such as Trump Las Vegas, Streamline, Juhl, and the Residences are looking better and better each day.

In fact, I've just become aware of 2 studios newly available at Trump - both are high floor facing south in the mid-$800,000s. Serious buyers need to act fast on this... perhaps a good alternative to "W"?