Stadium site expected to be lucrative to surrounding businesses

LAS VEGAS - Dollar signs are attaching to the Raider Nation as far as businesses near the new stadium lot are concerned.

There is a lot of commercial real estate space around the stadium site located at I-15 and Russel Road which is west of Mandalay Bay.

In fact, the stadium site itself has become a very valuable piece of real estate.  However, the value of the empty dirt lot has gone on a wild ride since the housing bubble burst, but the promise of the stadium had a two-pronged effect on the property and the land around it.

Look at last summer, for instance, around the time the stadium idea really took off: The preferred site at the time was on Tropicana just east of the Thomas & Mack Center.  But then the Russell Road site emerged, quickly becoming the front-runner last August.

As of Monday, the Review-Journal reported the property's valuation at $40 million, but it was sold for $77.5 million, nearly doubling its price.  The overnight spike is expected to bring the surrounding property values up along with it, and this is before any dirt is ever turned.

John Knott is the broker who sold the property to the Raiders.  He said the Raiders got a good deal.

"Peak of the market, it was trading at $300 million," said John Knott, principal broker, CBRE.  "At the depths of the recession, it was probably worth $30 million, which would be a 90 percent decline, which is consistent with what we saw in the resort corridor in general."

Before tapping into public money to pay for the stadium, the Raiders have to shoulder a lot of the costs includeing stadium land.  Some predictions had the team paying $100 million or more on a stadium parcel.

When all is said and done, by summer of 2020, the land housing the Raiders' stadium will be a $1.9 billion property.
 


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