Sacrebleu! The Las Vegas Strip is getting another casino.
A joint venture between Fontainebleau Development and Koch Real Estate Investment has locked down the $2.2 billion needed to build its new 67-story hotel, entertainment and gaming destination in Sin City, the developers announced Friday.
At a time when financing is harder to secure than a sighting of Santa’s sleigh, luck definitely is a lady for the partnership.
JPMorgan led the construction loan for the JV to begin work on what will be known as Fontainebleau Las Vegas, which is expected to start shuffling decks in the fourth quarter of 2023, according to the developers. Other lenders in the mix include Blackstone Real Estate Debt Strategies, SMBC and Goldman Sachs.
But, Koch and Fontainebleau believe their gamble will be a Black Jack.
“Securing $2.2 billion in financing in today’s market speaks to the widespread confidence in this project, and the team that’s come together to bring it to Las Vegas,” Jacob Francis, president of Koch, said in a statement.
The property at 2777 South Las Vegas Boulevard, acquired by the two groups in 2021 for an undisclosed amount, is located at the northern end of the strip and spans about 25 acres and the structure will be about 9 million square feet. Fontainebleau and Koch plan to build 3,700 hotel rooms and 550,000 square feet of customizable convention and meeting space on the site.
The casino floor will be about 150,000 square feet, placing it among the largest in Las Vegas joining the likes of Mandalay Bay, the Bellagio and Aria, according to a Nevada Gaming Control Board study.
“This is a milestone for Fontainebleau Las Vegas and stands as a testament to the tremendous dedication of our team and our partners at Koch Real Estate Investments,” Fontainebleau president Brett Mufson said in a statement.
Fontainebleau, led by Jeffrey Soffer, has been most active in South Florida having recently bought a $102.3 million development site on Jupiter Island in August where a redevelopment of the current building is likely, Commercial Observer previously reported.
And the financing isn’t the only massive deal to close at the end of the year in Las Vegas. Earlier this month, Blackstone agreed to sell its 49.9 percent stake in MGM Grand Las Vegas and Mandalay Bay hotels to Vici Properties in a deal valuing them at $5.5 billion, one of the largest casino deals in the country for 2022.
Sacrebleu! The Las Vegas Strip is getting another casino. A joint venture between Fontainebleau Development and Koch Real Estate Investment has locked down the $2.2 billion needed to build its new 67-story hotel, entertainment and gaming destination in Sin City, the developers announced Friday. At a time when financing is harder to secure than aRead MoreChannel, Construction, Finance, Blackstone Real Estate Debt Strategies, Fontainebleau Development, Fontainebleau Las Vegas, Goldman Sachs, JPMorgan, Koch Real Estate Investment, Newmark, SMBC Commercial Observer Read More
Robert Khodadadian has long had a simple philosophy about selling real estate. The way he sees it, there are approximately a million buildings in the city, and the broker that gets to sell any one among the multitude that will hit the auctioning block at a given moment is, sometimes, simply the person who happens to pitch their services to the right seller at the right time.
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