The Story and Lessons behind Carl Icahn’s Acquisition of the former Fontainebleau Las Vegas

During the depths of the recession, billionaire investor Carl Icahn submitted the one and only qualified bid in a Miami bankruptcy court to acquire the land and improvements of the former FontaineBleau Las Vegas, for $150,000,000. The price Icahn paid for the approximately 70% completed megaresort and tallest hotel tower in Nevada amounted to less than 10% of what had already been invested in constructing the improvements. In 2016, five years after acquiring the property, Carl Icahn is reported to be close to finalizing a sale of the property for an estimated $650,000,000. By reviewing the complete story and analyzing Icahn's investment, we'll try to gain a deeper understanding of real estate investing, and walk away with some lessons which will help us in making better investing decisions in our own lives.

Advertisement