Tivoli Village being sold for $216M

Tivoli Village is set to come under new ownership in a $200 million-plus deal, more than a decade after it opened.

Real estate firm 3D Investments confirmed to the Review-Journal on Monday that it’s buying the suburban Las Vegas retail-and-office complex from its Israeli owners. The buyer declined further comment on the sale.

Located at the northeast corner of Rampart Boulevard and Alta Drive, Tivoli features 370,000 square feet of retail and restaurants and 300,000 square feet of office space.

Landlord IDB Group USA Investments unveiled last month that it was selling the open-air, Mediterranean-themed property and adjacent land to 3D Investments for $216 million.

“We succeeded in selling the Tivoli project at a price and on terms beyond the expectations we held over the course of the process,” said Doron Cohen, chief executive of IDB Group USA’s majority owner Property & Building Corp., in a report last month from Israeli business-news outlet Globes.

Tivoli is around 80 percent occupied, and the sale is expected to close in late March, Property & Building Corp. USA CEO Eli Elefant told the Review-Journal on Monday.

Asked about the interest from prospective buyers, Elefant said a large amount of local and national players came to the table.

“It was a surprisingly extremely competitive process,” he said, adding Cushman & Wakefield brokered the sale.

The deal marks the latest chapter for a bubble-era real estate project that debuted after the economy crashed then expanded with a second section and has proven to be a popular spot for diners.

It also marks the latest big acquisition in Southern Nevada by the Beverly Hills, California-based buyer.

3D Investments founder Joseph Daneshgar is no stranger to Las Vegas. He purchased more than 200 units in Boca Raton, a luxury condo complex south of the Strip, for $44 million in 2018, and his family bought nearly 60 acres of mostly empty real estate just east of the Strip in early 2019 for $130 million.

Daneshgar also acquired Las Vegas Grand, a 212-unit apartment complex, for almost $48 million in 2019.

Tivoli’s developers, former conglomerate IDB Group and Las Vegas-based EHB Cos., broke ground in 2006. The first phase opened in 2011, after the real estate bubble burst and the U.S. economy was mired in one of the worst recessions in decades.

IDB and EHB also developed One Queensridge Place, two 18-story condo towers nearby. But the companies reportedly split ways around 2013, and IDB held control of Tivoli.

Tivoli’s second phase, comprising about 350,000 square feet of commercial space, opened in 2016.

Ardi Najmabadi, owner of clothing store Vasari, has been a tenant in Tivoli Village since it opened more than a decade ago. He said Monday that businesses in Tivoli are destinations, indicating it’s not a place where people typically stroll around and look for things to buy.

“We’re not a high foot-traffic mall,” he said.

Najmabadi agreed that many locals view Tivoli as a place to eat — restaurants include popular spots such as steakhouse Echo & Rig, Leone Café and Italian eatery Al Solito Posto — and didn’t dispute the notion that brick-and-mortar retailers there have struggled over the years.

But he is happy at the location. His business is service-oriented and based on “quality,” not quantity, Najmabadi said.

“There’s nothing better than Tivoli,” he said.

Contact Eli Segall at esegall@reviewjournal.com or 702-383-0342. Follow @eli_segall on Twitter.