Planned Sale of the Hughes Center, a Largely Vacant Office Park Near the Las Vegas Strip, Has Been Canceled

What happened

The deal to sell the Hughes Center, an office park at Flamingo and Paradise roads about a mile east of the Strip, has collapsed. The Las Vegas Review-Journal reported that court-appointed receiver Logic Commercial Real Estate disclosed in a Clark County District Court filing last week that the sale was canceled in early October.

According to the filing, the expected closing date had been pushed back several times. Logic wrote that despite "significant efforts to finalize the transaction, the sale was ultimately canceled," the Review-Journal reported. The filing did not give a reason in the portions described by the newspaper.

The buyer and the deal

Borden Industries had agreed to buy

Earlier court filings showed Logic was selling the property to Borden Industries, with closing expected around September. Filings this summer showed the two sides had reached an agreement, and in late July District Judge Maria Gall approved Logic's motion to sell, according to the Review-Journal.

The purchase price was redacted. The seller argued the public had "very little interest" in the deal's terms, court records show. Borden Industries' founder, Michael Borden, is a former top executive with Las Vegas data-center owner Switch, which is led by his brother, Rob Roy.

Redevelopment plans on hold

Borden had pointed to plans to redevelop the campus. The company's website lists the "Howard Hughes Corridor" in its portfolio and describes it as "In Closing," the Review-Journal reported. The site says Borden aimed to turn the 55-acre property "into the next premier destination for residents and visitors alike."

Logic Chairman Brendan Keating, CEO Jeff Jacobs and Michael Borden did not respond to requests for comment Wednesday. CBRE Group, the brokerage Logic hired last year to find a buyer, also did not respond.

Why the Hughes Center matters

A former top office address

Las Vegas lacks a traditional large downtown office market, and the Hughes Center was long seen as the city's leading office district, the Review-Journal noted. It once housed lawyers, accountants, commercial real estate brokers and other white-collar workers. In 2004, then-owner Crescent Real Estate Equities Co. reported it was 94 percent leased.

New York investment firm Blackstone bought the Hughes Center in 2013 for $347 million. Over time, though, the park lost waves of tenants to newer high-end buildings in the suburbs, especially the southwest valley and Summerlin. CBRE itself was among the firms that moved out.

Current vacancy

Logic reported that the park has almost 1.4 million square feet of office space with a vacancy rate of 61 percent. It also has more than 98,000 square feet of retail space, which is 15 percent vacant. The overall campus covers 68 acres, including some separately owned parcels, while the property CBRE was marketing covers 55 acres.

How it ended up in receivership

By 2023, the landlord had reportedly stopped making payments on its $325 million mortgage on the property, the Review-Journal reported. In 2024, District Judge Susan Johnson appointed Logic as receiver to take control. For more on local property trends, see our real estate coverage and development news.

In its quarterly receiver's report on Oct. 13, Logic said it continues to oversee the Hughes Center's operations and leasing activities.

What to watch next

• Logic Commercial Real Estate remains the court-appointed receiver overseeing operations and leasing at the Hughes Center.
• Why the sale fell through has not been explained publicly; Logic, Borden Industries and CBRE did not respond to the Review-Journal's requests for comment.
• Borden Industries' website still listed the property as "In Closing" at the time of the Review-Journal's report.