Fontainebleau Las Vegas Secures $2.2 Billion in Financing to Complete Construction
LAS VEGAS--(BUSINESS WIRE)--Dec 23, 2022--
A partnership between Fontainebleau Development, a builder, owner, and operator of luxury hospitality, commercial, and retail properties, and Koch Real Estate Investments (KREI), the real estate investment arm of Koch Industries, has secured – with J.P. Morgan as administrative agent – a $2.2 billion construction loan to complete Fontainebleau Las Vegas, the highly anticipated 67-story hotel, gaming, meeting, and entertainment destination coming to the north end of the Las Vegas Strip. The financing, a monumental achievement for both companies following their joint acquisition of the property in 2021, keeps construction on schedule and paves the way for Fontainebleau Las Vegas to make its global debut in the fourth quarter of 2023.
“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,” says Fontainebleau Development President Brett Mufson. “We are eager to bring our iconic Fontainebleau brand – timeless beauty, unparalleled service, and innovative design – to the Las Vegas Strip.”
Fontainebleau Las Vegas spans 25 acres and nine million square feet in a coveted location on the northern end of the Las Vegas Strip directly adjacent to the Las Vegas Convention Center, and will feature approximately 3,700 luxury hotel rooms, 550,000 square feet of customizable convention and meeting space, and a world-class collection of gaming, dining, retail, lifestyle, and health and wellness experiences.
“We would like to thank J.P. Morgan, SMBC, Blackstone Real Estate Debt Strategies, Goldman Sachs, Guggenheim, and VICI Properties for recognizing both the potential of this property and the expertise of those involved in its capitalization, design, and construction,” said Jacob Francis, president, Koch Real Estate Investments. “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.”
The partnership was advised by Dustin Stolly and Jordan Roeschlaub of Newmark. Upon completion, Bowtie Hospitality LLC, a subsidiary of Fontainebleau Development, will be the sole operator of Fontainebleau Las Vegas. Additional information can be found at fontainebleaulasvegas.com.
About Fontainebleau Las Vegas
Fontainebleau Las Vegas is a vertically integrated, luxury 67-story hotel, gaming, entertainment, and meeting destination scheduled to open fourth quarter of 2023. Created by Fontainebleau Development, which builds, owns, and operates premier hospitality, commercial, retail, and luxury properties, in partnership with Koch Real Estate Investments, Fontainebleau Las Vegas brings full circle the company’s longtime vision of hosting its iconic brand on the Las Vegas Strip. Located at 2777 S. Las Vegas Blvd. adjacent to the acclaimed Las Vegas Convention Center expansion, Fontainebleau Las Vegas will feature approximately 3,700 luxury hotel rooms, 550,000 square feet of convention space, and a world-class collection of restaurants and shops, pool experiences, vibrant nightlife options, and coveted spa and wellness offerings.
About Fontainebleau Development, LLC
One of the country’s premier real estate development and hospitality groups, Fontainebleau Development has a diverse portfolio which includes properties in the hospitality, gaming, residential, retail, commercial, and luxury services sectors. The company builds, owns, markets, and operates their properties, providing expertise in each stage of a project’s life cycle with a relentless focus on delivering the best quality in everything they do. Fontainebleau Development has established a diverse portfolio of premier assets such as Big Easy Casino, Fontainebleau Miami Beach, JW Marriott Turnberry Resort & Spa, Hilton Downtown Nashville, and numerous residential landmarks such as Turnberry Ocean Club, Turnberry Ocean Colony, Porto Vita, the Tresor and Sorrento towers at Fontainebleau Miami Beach. The company has also built nine residential towers in Las Vegas, including Turnberry Towers and Signature (in partnership with MGM Resorts International). Its luxury services division includes Fontainebleau Aviation, Turnberry Yacht Club & Marina, Turnberry Isle Country Club, and some of the highest grossing and well-known nightlife, dining and health and wellness destinations in the world. Over a 50-year history, Fontainebleau has been involved in over 100 projects representing in excess of $38 billion in total transaction value.
About Koch Real Estate Investments
Koch Real Estate Investments (KREI), based in Dallas, Texas, focuses its efforts on attractive risk-adjusted capital deployment into real estate assets and operating companies with an agnostic approach to product, geography, and capital position. KREI has an acute focus on best-in-class management teams and flexible capital solutions which align interests to drive mutual benefit with its partners. Since 2003, Koch companies have invested nearly $150 billion in growth and improvements. With a presence in more than 70 countries, Koch companies employ more than 120,000 people worldwide, with about half of those in the United States. For more news and information, visit www.KOCHind.com.
View source version on businesswire.com:https://www.businesswire.com/news/home/20221223005022/en/
CONTACT: Fontainebleau Las Vegas Media Contact
Rossetti Public Relations
FBLV@rossettipr.comFontainebleau Development Media Contact
KEYWORD: NEVADA NORTH AMERICA UNITED STATES IRELAND UNITED KINGDOM EUROPE
INDUSTRY KEYWORD: VACATION LODGING COMMERCIAL BUILDING & REAL ESTATE CONSTRUCTION & PROPERTY TRAVEL
SOURCE: Fontainebleau Las Vegas
Copyright Business Wire 2022.
PUB: 12/23/2022 10:00 AM/DISC: 12/23/2022 10:02 AM