Miami group envisions $2 billion Vegas product

9 August 2010

By Howard Stutz

LAS VEGAS, Nevada -- The Miami-based Peebles Corp. has acquired a majority stake in a small hotel-casino on Paradise Road that gives the company some 20 acres for future development near the Las Vegas Convention Center.

R. Donahue Peebles, the chief executive officer of Peebles Corp., said the site will eventually house the Las Palmas Resort & Casino, a planned $2 billion project.

But Peebles, whose business is considered one of the nation's largest African-American real estate development companies, said the project is on hold until the Las Vegas market is ready for new hotel-casinos.

"We have an extremely positive outlook on this market and are confident in the long-term future of Las Vegas," Peebles said. "During such a ripe time for commercial investing, we are pleased to have identified such a unique opportunity with a solid revenue stream as well as strong future development potential."

Peebles purchased a majority interest in the Mardi Gras Hotel & Casino, which is one block south of the Convention Center. The Jaramillo Family opened the hotel in the mid-1970s and retained a minority stake in the property. The Jaramillos will continue to oversee the current operations of both the hotel and casino.

Peebles said the Mardi Gras site will add to the 13-acre parcel Peebles previously acquired for the development of the Las Palmas project.

Las Palmas is being planned as a full-scale convention center resort and casino with two hotels that will be operated by an internationally known hotel company.

The Peebles Corp, which also has offices in Washington, D.C., has developed luxury hotels, high-rise residential and commercial properties and developments throughout the country.