Building Permits Renewed for Revived Las Vegas Resort Project

Posted on: October 24, 2023, 04:35h.

Last updated on: October 24, 2023, 04:35h.

The Dream Las Vegas project could potentially rise from its dormant state, as evidenced by a recent extension application filed for its building permits.

Construction on Dream Las Vegas, a boutique casino hotel planned for the Strip’s southernmost end, is shown last year. (Image: Scott Roeben/Vital Vegas)

The construction of the casino resort located at the southernmost tip of the Strip halted in March, with its developers reportedly owing between $25M and $30M. However, new documents filed with Clark County and reported by the Las Vegas Review-Journal suggest a potential restart at the beginning of 2024.

The Dream Hotel Group released this rendering in 2020. (Image: Dream Hotel Group)

One of the documents, a justification letter for the extension submitted on Oct., by the developer’s legal team, assured that the financing issues causing the project delay were being resolved, according to the newspaper.

A bridge loan is expected to be finalized by early November, followed by the complete capital stack closure (equity and debt) by December 2023.

When construction was paused, Bill Shopoff, the developer and president and CEO of Shopoff Realty Investments, expressed confidence in securing a new financing deal within a couple of weeks, according to the R-J.

The Rise of Dream

In February 2020, Shopoff and Contour, a privately owned commercial real estate development group, announced their acquisition of 5.25 acres of undeveloped land on Las Vegas Boulevard, adjacent to Harry Reid International Airport.

New York City-based Dream Hotel Group, known for operating luxury properties in Manhattan, Miami Beach, Hollywood, and Nashville, partnered to manage the planned 21-story luxury hotel.

The hotel will feature 531 guestrooms, seven dining and nightlife venues (including a rooftop pool deck), a 12,000 square-foot convention center, spa, and a small casino floor. After being delayed by the pandemic, the casino hotel broke ground on July 8, 2022.

Originally projected to cost $300M, the estimated cost of Dream Las Vegas eventually increased to $550M-$575M. Shopoff attributed the increase to inflation and interest rate hikes imposed by the Federal Reserve to control it, as stated in the R-J last year.

In February 2023, Dream Hotel Group was acquired by Hyatt Hotels Corp., with the corporation reportedly paying a base price of $125M and an additional $175M over the next six years as properties come into operation.

Source link

Leave a Comment