Available: Club Cal Neva– Established Downtown Reno Casino

Available: Club Cal Neva– Established Downtown Reno Casino

Available: Club Cal Neva– Established Downtown Reno Casino & Hotel Acquisition Opportunity
Downtown Reno
Reno/Tahoe
International Airport
A. Reno Events Center
B. National Bowling
Stadium
C. Reno Convention Center
D. Atlantis Casino
E. Peppermill Casino
F. Reno-Sparks Livestock
Events Center
G. Grand Sierra Resort &
Casino
H. Rail City Casino
I. The Nugget
F
H
Downtown Reno
I
G
A
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Global Gaming & Hospitality LLC (“GGH”) is pleased to announce the sale of the
Club Cal Neva Hotel & Casino and related assets (the “Property”), owned by
Sierra Development Company (the “Company”), located in the center of
historic downtown Reno, NV, which has a long-standing history as a midmarket gaming property for value-oriented consumers.
 The Property primarily consists of: 1) Cal-Neva Casino (located on East 2nd
St), 2) Nevadan Hotel (loc on N. Virginia St), 3) two parking garages (one
adj & one across st from casino) & 4) warehouse (loc ~1 mile east)
 The Property, situated on ±2.79 acres, has been in continuous operation
for 49+ years and is strategically located at the intersection of Virginia St &
East 2nd St – within convenient walking distance to all major downtown
casinos and entertainment offerings
 The casino currently features ±60k sq. ft. of gaming space, 850 slots, 37
table games and 3 live poker games along with 181 hotel rooms (+21 slots)
Downtown Reno is under-going a period of renaissance/rejuvenation, with
major investment capital expended on several significant projects such as new
luxury condos (Montage), a baseball stadium (incl entertainment district),
bowling stadium, events center and other general improvement projects.
The Company and/or the Property are currently being offered for sale with
flexibility in regards to the structure of a potential transaction
 This opportunity offers prospective buyers unique access to a casino with
long-standing history of operations & two separate non-restricted gaming
licenses (one grandfathered w/o a hotel room requirement), established
brand value & awareness, and alternative real estate potential
B
D
C
For general inquires or information, please contact:
Carlton L. Geer
Managing Partner
Global Gaming & Hospitality, LLC
Michael S. Kim
Managing Partner
Global Gaming & Hospitality, LLC
Direct: (702) 823-1952
Mobile: (702) 321-7331
[email protected]
Direct: (212) 933-0377
Mobile: (917) 509-2975
[email protected]
3243 E. Warm Springs Rd, Suite #121
Las Vegas, NV 89120
903 Madison Avenue, Suite #5F
New York, NY 10021
1
Private and confidential
E
www.gghsp.com
GGH
Global Gaming & Hospitality
Washoe County/Reno NV Market Overview
RENO
Sacramento
Legend
San Francisco
&
Oakland


Reno/Sparks is among the oldest and most established
gaming markets in the US ranking 15th among sub-markets
 Lowest gaming tax in US at ±7.0%, depending upon
jurisdiction & local taxes
 Unlimited gaming license state; however, supply
limited by ability to obtain local & NGC site approvals
The Reno/Sparks $1MM+ market features:
 22 casinos in the Reno/Sparks $1MM+ market,
producing gaming win of $679.4MM in 2010 and YTD
(7/11) gaming win of $±386.3MM
 ±18,000 gaming positions yielding a WPPD of
approximately $88 (7/11)
 4.6MM casino hotel room nights occupied in 2010, a
70% market occupancy rate, at an ADR of $72
 Reno hotel patrons average 3 nights per stay and
spend ~$1,000 on a trip per person (2007)
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Drive Time Rings
1,000,000 to 2,000,000 people
30 minute drive
500,000 to 999,999 people
60 minute drive
100,000 to 499,999 people
90 minute drive
0 to 99,999 people
120 minute drive
The Reno/Sparks MSA encompasses a population of ±419,000 people, a considerable locals base
for gaming and other entertainment activities
The Reno/Sparks gaming market is highly-correlated with economy/demographics of Northern
California, currently witnessing recovery & growth driven by resurgence of tech sector.
 4.2MM adults (21+) live within a three hour drive from Club Cal Neva, including the highlypopulated areas of Sacramento, San Francisco & Oakland
 Since 2000, the Washoe County Reno/Sparks gaming market experienced historical
fluctuations in gaming revenues incl declines from 2000-03 (tech bubble & 9/11), and 200610 (due to the Great Recession and Tribal competition in CA)
 Despite these historical declines in gaming revenue/positions, the market grew 4.9% from
Torecently
Add:
2003 to 2006 and most
shows signs of stabilization, evidenced by rapidly slowing
Revenue,
rate of 6 month movingHistorical
averageVolume
decline Gaming
in gaming
revenues since Dec 09
Visitation,
the market
and
Most recently investment capital
has text
beenondeployed
in downtown
Reno including:
 Purchase of the Grand demographics
Sierra Resort for ±$43MM
 Purchase of the Siena Hotel Spa Casino for ±$3.9MM, plus renovations
 Purchase of the Riverboat Hotel for $4.6MM
 Fitzgerald’s conversion to CommRow for est $2.5MM
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Private and confidential
Population Density
www.gghsp.com
GGH
Global Gaming & Hospitality
Club Cal Neva Property Overview – Reno, NV
A
B
C
C
Downtown Reno
A. The Montage Condo Complex
B. CommRow Hotel (Formerly Fitzgerald’s)
C. Harrah’s Casino Hotel Reno
D. Siena Hotel & Spa
D
Property Features:

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Club Cal-Neva Casino has ±60,000 SF of gaming space featuring 850 slot machines, 37 tables, 3 live poker
games, full sports book, 3 restaurants, 2 snack bars/delis, a cabaret bar for entertainment and 5 bars
 Offers variety of slot & table gaming “experiences” incl poker, blackjack, craps, etc. accessible from
two main thoroughfares (Virginia & Center Street), in addition to main 2nd Street frontage
 Gaming license for primary Club Cal-Neva Casino “grandfathered” w/no hotel room requirement
Nevadan Hotel with foot print of ±17,500 SF, consists of 181 hotel rooms (avg size ±324 SF) incl. 21 slots
 Hotel currently has separate non-restricted gaming license, which is potentially “moveable”
Two separate structured parking garages w/±1,240 total parking spaces are conveniently located in the
downtown core adjacent to and across the street from the Club Cal-Neva casino (connected via sky-walk)
Real estate consists of a ±121k SF site, ±103k SF owned fee simple and ±18k SF leased land, along with a
±20,000 SF fee simple site that houses a separate warehouse located ~1 mile east of the casino, offering
substantial alternative commercial real estate use opportunity
Investment Highlights:



Central location in downtown “core” includes established properties owned & operated by Eldorado,
MGM, Harrah’s, and Affinity Gaming (formerly Herbst), among others
 4th largest casino in re-vitalized downtown district (by # of gaming positions)
Long-standing historical track record (49+ yrs) of operations and presence in Reno community with
continuity of ownership & management & established “brand-equity” constructed around core Cal-Neva
sportsbook (recently under contract to be acquired & re-vitalized by William Hill plc (“HILL”)
Casino stand-alone (excluding hotel) generated net revenues of ±$8.4MM and ±$533k in adjusted EBITDA
for four months April 1, 2011 to July 31, 2011
 Excludes results of race & sports book operations currently under contract to be sold to HILL
3
Private and confidential
www.gghsp.com
GGH
Global Gaming & Hospitality
Transaction Highlights



Global Gaming & Hospitality LLC (“GGH”) and its subsidiary Global
Gaming & Hospitality Real Estate Services LLC (“GGHRES”) have been
retained to sell the Company or the Property, either in whole or in
part, excluding certain assets already under contract to be sold to
William Hill plc, the world’s largest on-line bookmaker
 As part of this process, the Company in its sole discretion may
elect to sell the stock of the Company or, alternatively, pursue a
sale or re-capitalization of all or the component parts of the
Property individually, offering flexibility to prospective buyers
regarding the potential structure of a transaction(s)
The Company has been closely-held & controlled largely by the same
group of family shareholders for 30+ years, providing a buyer with the
opportunity to secure multiple gaming licenses in NV (incl original
“grandfathered” license) along with ownership of hard asset that has
a long track record of generating significant historical revenues & cash
flow
Opportunity also provides immediate re-positioning or alternative
real estate use opportunities including, among others, potentially bifurcating or downsizing existing casino, exploring alternative use or
development for hotel, achieving substantial reduction in fixed
operating costs and greater operating efficiencies while concentrating
on serving the Property’s “core” customer base
 Additional opportunity to “revitalize” value proposition &
customer perception as “Reno’s Best Bet”, by concentrating on
core gaming customer
For additional information related to any potential transaction please contact either
Carlton Geer or Michael Kim with GGH or visit us at:
http://www.gghsp.com/Transactions/trx-details.asp?ID=8
Sparks
Market
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Reno
Market
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Lake
Tahoe
Market
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Private and confidential
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Casino
Cal Neva
Circus Circus
Eldorado
Gold Dust West
Harrah's
Sands Regency
Siena
Silver Legacy
Atlantis
Peppermill
Grand Sierra
The Nugget
Rail City
Western Village
# Slots
877
930
1,260
480
850
550
425
1,420
1,463
1,632
1,050
1,107
900
790
# of Tables # Rooms
37
181
35
1,572
44
816
28
37
928
15
860
16
214
61
1,720
39
938
46
1,635
38
1,994
26
1,600
5
9
147
Market
Downtown Reno
Downtown Reno
Downtown Reno
Downtown Reno
Downtown Reno
Downtown Reno
Downtown Reno
Downtown Reno
Other Reno
Other Reno
Other Reno
Sparks Market
Sparks Market
Sparks Market
GGH
Global Gaming & Hospitality
Disclaimer
This Preliminary Investment Summary (the “Summary”) is intended for the use of prospective buyers, investors or strategic JV partners (each an
“Interested Party”) in determining whether or not to pursue a potential transaction involving the subject Property and/or the Company.
The information contained in this Summary has been obtained from sources deemed reliable. GGH has not independently verified this information
and makes no guarantee, warranty, or representation regarding any such information. It is the Interested Party’s responsibility to independently
confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates are used for example only and do not represent the
current or future performance of the market, the Property, or the Company. The value of any transaction may depend upon tax and other factors
which should be evaluated by an Interested Party’s appropriate tax, financial and/or legal advisors. You and your advisors should conduct a careful,
independent investigation of the Property and the Company to determine the suitability for your needs.
Prospective parties should not contact any shareholder, officer, employee, customer, or suppliers of the Property or the Company. Please direct all
inquiries to one of the Advisor’s representatives listed below.
FOR FURTHER INFORMATION PLEASE CONTACT:
Carlton L. Geer
Managing Partner
Global Gaming & Hospitality, LLC
Michael S. Kim
Managing Partner
Global Gaming & Hospitality, LLC
Direct: (702) 823-1952
Mobile: (702) 321-7331
[email protected]
Direct: (212) 933-0377
Mobile: (917) 509-2975
[email protected]
3243 E. Warm Springs Rd, Suite #121
Las Vegas, NV 89120
903 Madison Avenue, Suite #5F
New York, NY 10021
5
Private and confidential
www.gghsp.com
GGH
Global Gaming & Hospitality