Shopping Centers Today

MAY 2012

Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)

Issue link: https://sct.epubxp.com/i/62026

Contents of this Issue

Navigation

Page 241 of 251

In contrast, Edelstein offered to "I lost everything when everybody was going bust. That was a turning point — I survived the downturn of the early '90s to come out with my basis intact." turn of the early '90s to come out with my basis intact." Edelstein teamed up with Vornado to build a 40-story condo tower on Central Park West, and he meanwhile became friendly with two captains in the industry: Stephen Ross, chairman of Related Cos., and Robert Futterman, chairman of Robert K. Futterman & As- sociates. Edelstein worked on projects as far away as Florida, where he developed retail properties in South Beach. Entertainment seems encoded in the 56-year-old sports and music enthusi- ast's DNA, so the connection with Las Vegas was a natural fit. "I used to go to all of the boxing matches in the Caesars parking lot," Edelstein said. "Being a boxing fan, being a sports fan, being a music fan, Vegas is the place to go." The story of his involvement in the Miracle Mile Shops is pure Edelstein, and it also bears witness to his get-it- done business style. The property was never actually marketed for sale, but Edelstein knew of its travails, and in 2003 he swooped in. "Through a friend, I got to the CFO of TrizecHahn and told him we would like to buy it," Edel- stein said. "He had already been in dis- cussions with several larger REITs and large shopping mall owners, but they wanted to sign a contract and spend three to six months doing due diligence to see how they could possibly fix it." 242 SCT / MAY 2012 plunk down $10 million hard money, with no due diligence, and he prom- ised to close in only 60 days. He and partners RFR Realty and Robert K. Futterman closed on the deal in Janu- ary 2004, and renovations commenced and shovelfuls of dirt began to fly. His first step was to hire Russ Joyner, former manager of Fashion Show Mall, in Las Vegas, and the man instrumental in the opening of the Hollywood & Highland development, in Los Angeles. A major revamp was in order, so Edelstein hired Gensler, the firm that master-planned the huge City Center project across the street. "We wanted to de-theme the mall," Edelstein said. "The retailers were struggling, because they had to have these Moroccan-themed storefronts, and they could not mer- chandise properly." A new name was needed too. "Des- ert Passage didn't mean anything, and we finally hit upon a name that was simple and elegant and spoke to what we are, not just a shopping center," said Edelstein. "We called it Miracle Mile Shops because it's a mile and a quarter around, from entrance to exit, and it's a miracle because it's Las Vegas and any- thing can happen there." Edelstein says he has learned a lot about people and markets throughout his career, and that he has put it all on the line at Miracle Mile Shops. "We knew that 80 percent of the 40 million people that visit Las Vegas every year are going there with a budget of $500 to $600, coming for one event, and they have free time. It's an affordable place to go and shop and have fun." With that in mind, he created what he describes as an "edgy, urban street environment" that allows its merchants to express and market themselves. Most important, he blew out the front of the shopping center and opened it to the Las Vegas Strip, complete with mega- LED signage. When the dust settled on the renova- tion in early 2007, traffic surged. Today Miracle Mile Shops has 170 stores with modestly priced merchandise, and it also brought in Las Vegas' first H&M.; "We were the leader in bringing in a lot of these brands," said Edelstein. "And we knew our market was the mid-priced market, and, knock on wood, it has been successful." Much like the retail market itself, Edelstein is in a constant state of evolu- tion. He is spending some $2 million to build new escalators near the bridge over Las Vegas Boulevard at Harmon Avenue. "We will capture all of that traf- fic coming across the bridge, and it will land right at our doorsteps," he said. In many respects, luck played a big role in Edelstein's Las Vegas success story. "Who would have thought that the Cosmopolitan, City Center and Westgate would be built all around us? Literally, $10 billion worth of new hotels with 18,000 hotel rooms have been built within a 9-iron of the mall," he said. Not surprisingly, Edelstein the en- trepreneur is involved in several new projects. He hopes to work with the city of Miami Beach on a three-block devel- opment of retail and pedestrian-friendly gardens behind Lincoln Road. And he is developing a boutique hotel in New York City's financial district. The open- ing of his $400 million W South Beach in 2009 elevated him to chic status, but his hippest endeavor to date is the po- tential development of a rock Hall of Fame project in Las Vegas he is work- ing on with Rolling Stone magazine co- founder Jann Wenner and which will feature live music. Edelstein thinks he may have a bit of work to do to impress the younger generation. "My 15-year-old laughs at me when I think I'm cool," he quipped. "He starts talking about Af- rojack and David Guetta, and I'm still talking about The Who, the Eagles and the Stones." SCT

Articles in this issue

Archives of this issue

view archives of Shopping Centers Today - MAY 2012