- Local developer Michael Ochoa has bought a stretch of land near the Las Vegas Strip at an unexpectedly low price.
- The sellers of the 12.1-acre piece of land set the price of the property at $42.3 million in 2017 but finally sold it this year at only $12.5 million.
- A listing agent noted that the property has limited frontage on Paradise, something that could have contributed to its less-than-anticipated sale price.
- The agent added that the sellers needed to sell the property this year.
A local developer has bought a stretch of land near the Las Vegas Strip at a price that is much less than the sellers previously hoped to get.
Property records reveal that developer Michael Ochoa acquired 12.1 acres off Paradise Road near the soon-to-open Virgin Hotels Las Vegas, a mile east of Las Vegas Boulevard, for just $12.5 million. The sale closed last month and the sellers were Chinese investors.
Real estate activity just east of the Strip had been gaining momentum before the ongoing pandemic paralyzed tourism, an industry that Las Vegas heavily relies on economically. Even before the coronavirus outbreak, there was no guarantee that Ochoa’s new tract would trade hands, though it’s near a few sites with projects in the pipeline.
Ochoa Development Corp., the new owner’s namesake company, is based in Henderson. A representative of the buyer, Lou Ochoa, confirmed the acquisition Wednesday and said his group is trying to plan a great project.
He said they hope to begin construction work within the next year. However, he added that it could take 24 or 36 months and that his team doesn’t want to share any details yet. “We don’t have any comment on it,” he said.
While the property was on the market in 2017 for about $42.3 million, its price dropped to $25 million at some point, according to marketing materials. ERA Brokers Consolidated listing agent Mark Anthony Rua noted this week the land has limited frontage on Paradise, something that might have contributed to its less-than-anticipated sale price.
He added that his clients wanted to unload the land this year. “That was the best price they could get with a buyer that would close this year,” he said.
Ironically, the land is near a property that sold last year for a hefty amount of money. The owners of Southern California real estate firm 3D investments, the Daneshgar family, purchased close to 60 acres of mostly vacant real estate in the area for $130 million.
The new holdings of Ochoa are also within the vicinity of the 1,500-room Virgin Hotels Las Vegas, a property that consumed roughly $200 million in its renovation from the Hard Rock Hotel and is set to open on January 15 next year.
The holdings are also next to the long-shuttered former Atrium Hotel, which is scheduled to be demolished and replaced with a 480-unit Siegel Suites apartment complex.
Atrium’s owner, the Siegel Group, plans to begin tearing down the old property in the second quarter of next year, according to Senior Vice President Michael Crandall.