The Bonanza Gift Store, a landmark retail destination claiming the title of the “world’s largest gift shop” on the bustling Las Vegas Boulevard, has been sold for a significant sum of $50 million. Known for its extensive collection of Vegas-themed merchandise, from coffee mugs and keychains to novelty shot glasses and flasks, the Bonanza Gift Store is a quintessential stop for tourists seeking souvenirs. This recent property transaction highlights the enduring value of retail locations on the iconic Las Vegas Strip.
Haim Gabay, the current operator of the Bonanza Gift Store, acquired the 2-acre property situated at the northwest corner of Las Vegas Boulevard and Sahara Avenue in a deal finalized on Friday, according to Clark County records. The purchase was supported by substantial financial backing, including a $25 million loan from a bank and an additional $10 million loan provided by the sellers.
While the Bonanza Gift Store property, with its classic Western-style signage, evokes a sense of old Las Vegas charm, its sale is occurring amidst a notable surge in retail property investments along the Strip. Despite fluctuations in other sectors of the Las Vegas real estate market, retail spaces have become increasingly attractive to investors. Billions of dollars have been invested in enclosed malls, drugstores, and shopping plazas as tourist spending habits evolve, with many visitors choosing to explore retail offerings beyond the traditional casino floor.
John Knott, a Las Vegas broker and head of CBRE Group’s global gaming division, noted that the Bonanza property had been previously listed for sale and could have commanded a higher price of around $70 million during the peak real estate bubble of the last decade. However, despite its prime location, there had been no prevailing rumors of the property being redeveloped into a casino or condominium tower, projects that were once common during the boom era. “It makes more money doing this,” Knott commented, referring to the continued retail operations at the site.
Haim Gabay, the new property owner, was unavailable for direct comment. However, his attorney, Mark McIntire from the law firm Sklar Williams, confirmed that Gabay has been operating the Bonanza store as a tenant for approximately a year. Gabay intends to maintain the “iconic” gift shop for the “foreseeable future.” McIntire emphasized Gabay’s successful track record in operating gift shops and his long-standing interest in the Bonanza location, strategically positioned across from the northern end of the Las Vegas Strip on Sahara Avenue.
McIntire also verified that Gabay’s acquisition of the Bonanza property was facilitated through a 1031 exchange. This type of exchange allows real estate investors to defer capital gains taxes by reinvesting proceeds from a property sale into a similar property. In June, county records indicate Gabay sold a small commercial property at 24 Fremont Street, within the Fremont Street Experience, to casino owner Derek Stevens for $13.5 million. This sale freed up capital for the Bonanza Gift Store property purchase.
The Bonanza property was sold by a venture that included the investment firm Eastern Real Estate. Brian Kelly, co-founder of Eastern Real Estate, did not respond to requests for comments.
While the overall Las Vegas Strip real estate market is not experiencing a widespread boom, with investors showing less interest in vacant parcels and major resort projects like Resorts World Las Vegas and Alon facing delays, the retail sector remains vibrant. Recent years have witnessed the opening of significant retail developments such as The Linq, a $550 million open-air complex; Grand Bazaar Shops in front of Bally’s; and a three-story mall at Treasure Island. Furthermore, major retail property transactions this year include the acquisition of The Shops at Crystals for $1.1 billion, a 50 percent stake in Fashion Show for $1.25 billion, and the Miracle Mile Shops in a deal reportedly around $1.1 billion. These investments underscore the robust retail market on the Las Vegas Strip, making the Bonanza Gift Store property a valuable acquisition.
