August 20, 2014
A Goldman Sachs investment fund came closer to putting a $1.3 billion bet on the Las Vegas Strip.
The fund was approved today (Thursday) to buy the iconic 1,149-foot-tall Stratosphere tower and casino-hotel, a mid-market property that caters to budget travelers.
Managing director Jonathan Langer of Goldman Sachs & Co. told members of the Nevada Gaming Commission he believed some consumers were being priced out of hotels on the Las Vegas Strip.
Langer said the acquisition gives Goldman the opportunity to target the middle class.
The purchase, announced last April, includes two local Arizona Charlie's casinos and the Aquarius Casino Resort in Laughlin, and a developable 17-acre parcel attached to the Stratosphere.
They were previously owned by billionaire Carl Icahn's American Real Estate Partners LP.
Langer said the fund was preparing to immediately spend $54 million to upgrade the properties, but had no plans for the 17 acres yet.
The commission unanimously approved the deal.