|By Hubble Smith, Las Vegas Review-Journal|
Knight Ridder/Tribune Business News
Jul. 29, 2005 - Gaming companies are realizing the need for a strong residential component in their properties, Las Vegas developer Steven Molasky said Thursday in announcing plans to build two 300-unit condominium towers at Red Rock Station in a joint venture with Station Casinos.
"The new Vegas is going to be mixed-use projects along with gaming," said Molasky, chairman and chief executive officer of Molasky-Pacific. "I believe the Station group is incredibly well-managed and has realized this."
The project would be similar to the partnership between Turnberry Associates and MGM Mirage to develop The Residences at MGM Grand. Palms hotel owner George Maloof has also announced plans for a condo tower on the property.
Molasky and his partner, Stephen Cloobeck, developer of the Polo Towers time shares, are experienced, second-generation developers with a number of commercial, retail and high-rise projects in Nevada and California.
Both said they were not comfortable estimating the cost of the project or the price range of condo units.
"It's going to be very competitive with what's in the marketplace at other high-end projects," Molasky said. "We see very strong demand for high-quality urban living associated with a resort."
Cloobeck said the height of the towers, a major point of contention for Summerlin residents when Red Rock Station was being proposed, has yet to be determined, but it would be under the 190-foot limit.
Station Casinos, which is providing eight acres for the condo project, would have an 80 percent share in the project.
Molasky said he's confident about securing the appropriate capital to finance the venture, especially given the strength of the Las Vegas real estate market and Station's standing on Wall Street.
"They have a great brand for locals and moved up with Green Valley Ranch, and we're certain Red Rock will continue the movement toward the higher end," he said.
"We are thrilled with the possibilities surrounding this alliance," Cloobeck added. "The depth of our bench in all disciplines of resort development and hospitality management are astounding. Everybody realizes in the urban environment, it takes a lot of talent and brain power."
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