Harrah’s pays $90M an acre

Oct 24, 2006 7:45 AM

The numbers defining the recent property swap that had Harrah’s getting the Barbary Coast in return for 24 acres north of the Stardust are mind-boggling to say the least.

The effective per acre price that Harrah’s paid for the Barbary real estate computes out to $90 million an acre, according to reliable insiders.

Obviously this wasn’t your usual real estate deal, but the bottom line makes the $30 million an acre that Columbia Sussex is paying for the Tropicana’s 34 acres look like chump change.

The price Harrah’s was willing to pay had everything to do with location as Harrah’s completed the assembly of property it wants to plan future development of its existing properties on more than 300 acres between the Rio west of I-15 and the Harrah’s facilities east of the Strip.

The Barbary occupies a little more than four acres at the corner of the strip and Flamingo and was opened in February 1979 for about $11 million, including the bankroll in the cage.