Vornado Realty and Mills Corp. have joined forces to bid on Grand Canal Shoppes in Las Vegas

Real Estate Alert, March 31, 2004

Vornado Realty and Mills Corp. have joined forces to bid on Grand Canal Shoppes in Las Vegas. The companies competed against each other during the first round of bidding. Vornado president Mike Fascitelli and Mills president Mark Ettenger both formerly worked at Goldman Sachs, which is marketing the property.

Grand Canal Shoppes is expected to fetch more than $500 million, but that figure might change as owner Sheldon Adelson tinkers with the offering--over such matters as whether to include a restaurant in the adjacent Venetian casino. Regardless, the buyer's initial annual yield could go below 5%. Simon Property and General Growth Properties are also finalists.