The Raiders Henderson, Nev. Headquarters and practice facility, which is still in the process of being completed, was purchased for $6 million two years ago. They purchased the 55.6 acres of land on a sweet deal, at a cut rate of half of what the property was worth at the time.
Fast forward two years, and the Raiders are making out with an even bigger deal. They just sold their unfinished facility for 30 times the amount they originally paid for it, for $191 million, turning an astonishing $185 million profit.
Chicago-based company, Mesirow Financial, reportedly purchased the headquarters last Friday. The team signed a 29-year contract to lease the space, with the possibility of seven 10-year extensions. With the extensions available, it could potentially become a 99-year ground lease agreement.
As of now, it’s unknown the amount of rent the Raiders will pay Mesirow Financial for leasing the space.
Business is booming in the valley for the Las Vegas Raiders, who have the new $2 billion Allegiant Stadium to call home, and this is all before even playing their first game. On the other hand, however, some Nevadans are arguing that it’s at the expense of Las Vegas residents, saying that taxpayers are the ones officially losing out in the Raiders latest deal.
Can the Raiders Boost an Economy Centered Around Tourism?
For a long time, the Las Vegas economy was purely built on gambling and tourism. There’s been a recent shift in more family-focused tourism however, and more surprisingly, tourism centered around professional sports.
Prior to the Raiders, the unalloyed success of the Vegas Golden Knights stood on its own as a magnet for sports tourism, as well as its heavy hard in building a sizable revenue from a loyal, local fan base.
But, with the popularity of the NFL, the Raiders are gearing up to be the city’s biggest catch yet.
Local businesses, like Maverick Helicopters, say the team will be great for bringing in new out-of-town business.
“That’s where the N.F.L. is great for us because it’s going to bring Packers fans, Patriots fans, Steelers fans,” said Bryan Kroten, the vice president of marketing of Maverick Helicopters. “Whatever it takes to get new people to Vegas.”
The M Resorts, which lie adjacent to the Raiders headquarter and practice facility, are reporting increased bookings since becoming the team’s official hotel. The jump in business is only expected to grow once the team starts this season.
For home games, the Raiders will rent out a block of around 300 rooms at M Resort for the nights before they play.
The resort will also be launching a Raiders Bar & Grill and include a team-themed retail shop on-site.
About the Raiders Headquarters
The Raiders reached an agreement with Intermountain Healthcare in December that allowed them to become the naming rights partner for the Performance Center and Corporate Headquarters. The facility is three-stories high, includes 135,000 square footage of office space, and features one-and-a-half indoor football fields.
The partnership is expected to generate around 250 jobs in order to run team operations, according to the press release.
The Intermountain Healthcare Performance Center and Raiders Headquarters is expected to open its doors this summer.