Fontainebleau Las Vegas Secured $2.2B to Ensure Project Completion

Fontainebleau Las Vegas Secured $2.2B to Ensure Project Completion

The completion of the Fontainebleau Las Vegas project was guaranteed by acquiring $2.2 billion in funding. 

The Fontainebleau Las Vegas will become only the second resort and casino to open on the Strip in more than a decade when it finally opens its doors the following year.

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Finally Plans to Open its Door Next Year

After years of delays, a casino resort that was supposed to be built on the Las Vegas Strip has finally been granted a loan of $2.2 billion by a consortium of banks and other investors, which will allow it to finally finish building its facilities.

The financing for the development of the Testament of Dedication Fontainebleau Las Vegas was secured with the participation of Sumitomo Mitsui Banking Corp., Blackstone, Goldman Sachs, Guggenheim Partners, and VICI Properties. 

The project was developed through a partnership between Fontainebleau Development and Koch Real Estate Investments (KREI), which is a subsidiary of Koch Industries. J.P. Morgan Chase acted in the capacity of the administrative agent, and Dustin Stolly and Jordan Roeschlaub of Newmark Group acted in the capacities of the financial advisers. After the construction is finished, a Fontainebleau Development company will take over management of the property.

A Proof of its Tremendous Dedication to Market

Commenting on the situation, Brett Mufson, president of Fontainebleau Development, hailed the financing as “a milestone for Fontainebleau Las Vegas,” and as “a testament to the tremendous dedication” of the people who had worked to secure the funding at Fontainebleau and their counterparts at Koch Real Estate Investments. Mufson was referring to the fact that Koch Real Estate Investments had partnered with Fontainebleau to acquire the financing.

Jacob Francis, president of Koch Real Estate Investments, thanked “J.P. Morgan, SMBC, Blackstone Real Estate Debt Strategies, Goldman Sachs, Guggenheim, and VICI Properties [in his comments] for recognizing both the potential of this property and the expertise of those involved in its capitalization, design, and construction.” Francis was referring to the investors who were involved in the property’s design, construction, and capitalization.

As Francis concluded, he said, “The fact that we were able to secure $2.2 billion in financing in today’s market shows to the widespread faith that has been placed in this project and the team that has come together to bring it to Las Vegas.”

Many Windings and Bends

The hotel is situated on the north end of the Strip, close to Wynn Resorts and the Las Vegas Convention Center. This region of the Strip has historically been known for being challenging for hotel operators due to the limited number of other resorts that are located in the immediate area. The Genting Group’s Resort World Las Vegas was one of the first hotels to open in this region in June of 2021.

The property was purchased by the partnership in February of 2021, and official construction on the $3.7 billion casino resort project began in November of the previous year. 

The partnership intends to make the property available to the general public in 2023. The development is scheduled to include a hotel with 67 stories, a casino, and convention space, in addition to a shopping center with two levels and more than 35 upscale boutiques and stores.

Jeffrey Sofer, the current proprietor of the Fontainebleau resort in Miami Beach, Florida, was the one who initiated the undertaking in 2007, but he was forced to discontinue it in the midst of the financial crisis because he had lost control of it. Prior to Sofer and its partner, Koch Real Estate Investments, regaining ownership of the property last year, the previous owners of the site were Carl Icahn and Steven Witkoff.

 

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About Lou De Aguila

Lou Aguila is a news and feature writer for Golden Casino News. For over a decade, Lou has published news and featured articles for some of the most reputable sports betting and online casino sites in the world, including BetNow.UK, VegasOdds, and BWin. Apart from being a hardcore live casino punter, he also covers sports stories in North American leagues from time to time.