The developers of Fontainebleau Las Vegas have received $2.2 billion in financing to complete the anticipated 67-story hotel, gaming and entertainment destination. A partnership between Fontainebleau Development and Koch Real Estate Investments have secured the construction loan for the project coming up at the north end of the Las Vegas Strip.
The financing, a significant achievement for the developers after their joint acquisition of the property in 2021, will keep construction on schedule with a slated opening in the fourth quarter of 2023.
The partnership was advised by Dustin Stolly and Jordan Roeschlaub of Newmark. Once completed, Bowtie Hospitality LLC, a subsidiary of Fontainebleau Development, will be the sole operator of Fontainebleau Las Vegas.
“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,” said Jacob Francis, president of Koch Real Estate Investments.
J.P. Morgan, SMBC, Blackstone Real Estate Debt Strategies, Goldman Sachs, Guggenheim and VICI Properties are also involved in the project’s capitalization, design and construction.
The Fontainebleau Las Vegas is spread across 25 acres and 9 million square feet and adjacent to the Las Vegas Convention Center. The vertically integrated building is expected to feature 3,700 luxury guest rooms, 550,000 square feet of customizable meeting space and a collection of gaming, retail, dining, health, lifestyle and wellness experiences.
“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 Development President Brett Mufson said in a statement.
RESTART
The Fontainebleau was initially started in 2009 and was supposed to be a $2-billion resort featuring more than 3,000 rooms and 24 restaurants along with a theater hall and retail. The project was originally led by Jeffrey Soffer of Turnberry and Glenn Schaeffer, formerly of the Mandalay Resort Group. Construction began in 2007 with opening scheduled in 2009. However, the project was put on hold after the founders went bankrupt but was acquired in 2010 by Carl Icahn for around $150 million.
The project was then sold to developer Steve Witkoff in 2017 for $600 million, who planned to open it in 2022 but construction was stopped due to the COVID-19 pandemic. Early last year, Soffer, in partnership with Koch Real Investments, reacquired the property.
NEW HIRES
On the heels of the financing, the hotel made some key appointment announcements. Among them were Colleen Birch as COO, joining the Fontainebleau after 13 years with The Cosmopolitan of Las Vegas; Stephen Singer as CFO, who previously served as EVP of Acquisitions and Capital Markets for Fontainebleau Development; Daniel Espino as chief people officer, joining from The Cosmopolitan of Las Vegas; and Marc Guarino as CTO, joining the hotel from Brookfield Asset Management.