Maverick investor Carl Icahn announced that his company has completed the sale of a mothballed hotel tower and partially developed casino on the Las Vegas Strip for $600 million. That property, originally slated to operate as the Fontainebleau, was bought by The Witkoff Group LLC and New Valley LLC.
The buyers’ specific plans for the property were not immediately disclosed. In a news release, Witkoff chairman and ceo Steve Witkoff referred to the development by its address, 2755 Las Vegas Boulevard South, and described it as “one of the best physical assets in the country, which is one of the reasons we were attracted to it.”
“We acquired a well-designed, structurally sound integrated resort at a significant discount to both replacement cost and the implied public market valuations of comparable Las Vegas Strip resorts,” Witkoff says. “We look forward to applying our industry-leading value-enhancing platform to this property to unlock its true growth potential.”
The Witkoff Group is a New York-based real estate development and investment firm, while Miami-based New Valley is an investment company owned by Vector Group.
Icahn Enterprises LP acquired the Las Vegas property for $148 million in February 2010. “This successful investment is an example of our ‘contrarian’ modus operandi, which seeks to invest in undervalued assets and businesses, nurture, guide and improve their condition and operations, and ultimately sell them for large gains,” Icahn said in a statement.