After securing $2.2 billion in funding to complete construction, the 67-story Fontainebleau Las Vegas on the north end of the Strip remains on track for a grand opening in the fourth quarter of 2023.
A partnership between Fontainebleau Development and Dallas-based Koch Real Estate Investments (KREI), the real estate investment arm of Koch Industries, acquired the property in 2021; together, they secured the $2.2 billion in construction loan with J.P. Morgan as administrative agent.
“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,” said Fontainebleau Development President Brett Mufson in a statement.
Fontainebleau Las Vegas spans 25 acres and nine million square feet on the northern end of the Las Vegas Strip adjacent to the Las Vegas Convention Center. It will feature approximately 3,700 rooms, 550,000 square feet of convention and meeting space, and a collection of gaming, dining, retail, lifestyle, and health and wellness experiences. The casino-resort will also boast a 90,000-square-foot luxury shopping district with 35 retail stores across two levels.
“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 the property.
Fontainebleau Development Chairman and CEO Jeffrey Soffer was the original developer of the project that broke ground in 2007. The Great Recession and real estate crash caused the project to go into bankruptcy in 2009
before being acquired by billionaire Carl Ichan in 2010.
Ichan sold it in 2017 to New York developer Steve Witkoff, who planned to call it Drew Las Vegas after his late son.
Fontainebleau Development’s diverse portfolio includes properties in the hospitality, gaming, residential, retail, commercial, and luxury services sectors, such as Big Easy Casino, Fontainebleau Miami Beach, JW Marriott Turnberry Resort & Spa, Hilton Downtown Nashville, and numerous residential landmarks — Turnberry Ocean Club, Turnberry Ocean Colony, Porto Vita, and the Tresor and Sorrento towers at Fontainebleau Miami Beach.
The company has also built nine residential towers in Las Vegas, including Signature (in partnership with MGM Resorts International) and Turnberry Towers. 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.