Dream Las Vegas Resort Set to Resume Construction in 2024
The Dream Las Vegas project, a boutique casino hotel located at the southernmost end of the Las Vegas Strip, is poised to resume construction in early 2024.
The $550 million prospective addition to the list of famous Nevada casino venues stalled in recent years, with owners Shopoff and Contour reportedly owing construction debts between $25 million and $30 million.
However, recent documents filed with Clark County indicate that the construction could restart at the beginning of 2024. An extension application for its building permits has been filed, signaling a potential revival of the project. If it does go ahead, one Shopoff spokesperson said the operator is targeting a 2025 launch date.
If it does restart construction, Dream Las Vegas will be the second long-delayed Las Vegas casino project to get a new lease of life in 2023. The long-awaited $3.9 billion Fontainebleau Las Vegas is finally nearing completion for a December opening after first breaking ground in 2008.
Financial Hurdles Overcome
As has happened before with Las Vegas casino resorts, Dream’s developers faced significant financial challenges that led to the halt in construction.
A justification letter for the extension, written by the developer’s attorneys on October 4, stated that the financing issues causing the delay were “being sorted out.” A bridge loan is anticipated to close by early November, with the “close of the full capital stack (equity and debt)” expected by December 2023.
Bill Shopoff, the president and CEO of Shopoff Realty Investments, had previously expressed optimism about securing a new financing deal in the near future.
McCarthy Construction is still owed some $25 million to $30 million in payments, which are expected to now go through with the investment secured. The building firm previously applied for a lien, or a holding order that prevents the property being handed over, until a payment plan was arranged.
$575 Million Project
In February 2020, Bill Shopoff and Contour, a commercial real estate development group, announced the purchase of 5.25 acres of undeveloped land on Las Vegas Boulevard, adjacent to Harry Reid International Airport.
The Dream Hotel Group, known for operating luxury properties in Manhattan, Miami Beach, Hollywood, and Nashville, was signed to manage the planned 21-story luxury hotel.
The Dream Las Vegas resort plans 531 guest rooms, seven dining and nightlife venues, a rooftop pool deck, a 12,000-square-foot convention center, a spa, and a modest casino floor. The project broke ground on July 8, 2022 after facing delays from the pandemic.
Interestingly, the plans do not include space for a new addition to the list of Nevada retail sportsbooks, with the focus being more on hospitality than gambling.
Dream Las Vegas was estimated to cost $300 million. But that figure eventually doubled to a range between $550 million and $575 million. Shopoff attributed the increased costs to inflation and interest rate hikes imposed by the Federal Reserve.
Dream Hotel Group was also acquired by Hyatt Hotels Corp. in February 2023. The acquisition deal reportedly involved a base price of $125 million, with an additional $175 million to be paid over the subsequent six years as new properties are developed.
The uncertainty behind this acquisition also contributed to the Dream Las Vegas delays, as assurances were sought about financing from the new owners.
“We continue to work in concert with McCarthy, Hyatt, and Clark County officials, and are thankful that we have their continued support,” said a spokesperson for Shopoff, as reported by the Las Vegas Review-Journal.
“We remain committed to completing this project and look forward to being a part of the Las Vegas resort options.”
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