Tony Hsieh, CEO of Zappos, has been making waves in Las Vegas lately by going on a mini real estate buying spree in a concentrated area of Downtown Las Vegas. Hsieh founded and has provided the bulk of funding for the Downtown Project, a $350 million vision aimed at attracting business and growth to Downtown Las Vegas and creating thriving, lively neighborhoods. Unlike many other urban renewal efforts that focus on either residential development or large municipal structures, such as arenas, Hsieh notes that, “we are focused on office space for entrepreneurs, retail, small businesses, and in general helping make Fremont East a place of entrepreneurial energy and a safe, walkable neighborhood.”
Andrew Donner of Resort Gaming Group is Hsieh’s chief real estate deal-maker and has recently purchased 14 downtown parcels totaling around $45 million. These properties include the former City Hall at 300 Stewart Ave. as well as several residential hotels. Hsieh notes that it is still too early to speculate on exactly what will be done with these properties, but the overall vision is to create “pods” of activity that increase foot traffic as well as spending and prompt other property owners in the area to make improvements to their assets as well.
To spite the noble quality of Tony Hsieh’s vision, his plan is not without its detractors. Some in the real estate community have complained that the high profile buying of the Downtown Project was driving up real estate values in a depressed area that otherwise does not command top dollar. Terry Murphy, a downtown property owner and lobbyist, feels that any impact caused by Hsieh’s buying is likely to be short lived and subordinate to the overall benefits of The Downtown Project. Murphy said, “There certainly has been an impact on prices, but the upward impact on actual value will more likely occur over time as the Downtown Project developments and others get under way.”
No comments:
Post a Comment