The difficulties of the Fontainebleau Las Vegas could finally be over. The property was the poster child for the 2007 recession when construction ceased after funding dried up. It went through several owners, including Carl Icahn, before winding up right where it started, under the original owners, who also own the Fontainebleau in Miami Beach.
And last week, the 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 67-story hotel, gaming, meeting, and entertainment destination coming to the north end of the Las Vegas Strip.
“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.
The funding will allow the property to keep to the timeline of a grand opening in the fourth quarter of 2023.