CityCenter Holdings, LLC (“CityCenter”), a venture between MGM Resorts International (NYSE: MGM) and Infinity World Development Corp., today announced that it has entered into a definitive agreement with a venture led by Invesco Real Estate (NYSE: IVZ) and Simon Property Group (NYSE: SPG) to acquire The Shops at Crystals for a purchase price of approximately $1.1 billion.
Located at the entryway of CityCenter and in the heart of the Las Vegas Strip, the stunning retail asset boasts over 324,000 square feet of luxury shopping space. The transaction is expected to close in the second quarter of 2016, subject to customary closing conditions.
“This transaction demonstrates the strength in Las Vegas as a premier destination for visitors around the world. A staple of CityCenter and ideally located on the Las Vegas Strip, The Shops at Crystals provides the preeminent luxury retail experience,” said Jim Murren, Chairman and Chief Executive Officer of MGM Resorts International. “We believe that Invesco Real Estate and Simon Property Group are the ideal stewards to maintain the high quality of the asset and usher in a new era of success.”
Added David Simon, Chairman and Chief Executive Officer of Simon Property Group, “The acquisition of The Shops at Crystals provides us with an extraordinary opportunity to obtain a unique high-quality asset in a growing marketplace. We look forward to perpetuating and building upon the successful foundation that CityCenter has created to further distinguish The Shops at Crystals as a leading retail destination.”
The Shops at Crystals is anchored by 10 luxury flagship stores, including Louis Vuitton, Gucci, Dolce & Gabbana, Tom Ford, Prada, Fendi and Tiffany & Co., as well as 30 unique-to-market luxury retailers including Celine, Saint Laurent and Richard Mille.
Since opening in late 2009, The Shops at Crystals has been recognized for its architectural sophistication, with its exterior designed by Daniel Libeskind and its interior designed by David Rockwell. The asset features a dedicated tram station, connecting to the Bellagio Resort & Casino and Monte Carlo Resort & Casino and is in close proximity to several luxury resorts totalling approximately 16,000 rooms. It is also the most pedestrian accessible and centrally located retail property on the Las Vegas Strip.
CityCenter was represented by JLL, who brokered the sale.
“Las Vegas has experienced significant economic growth over the past few years, with a record number of visitors in 2015 and an increasing international clientele,” said Michael Zietsman, International Director with JLL’s Capital Markets. “Visitors now spend more than half their travel budget on non-gaming expenditures. A sale like this has never made more sense.”