In 2021, a new combination formed between Fontainebleau Resorts LLC, a Florida-based owner, builder, and operator of the leading hospitality, commercial and retail industries, and KREI (Coch Real Estate Investments), a real estate subsidiary of Koch Industries, based in Dallas, Texas, will be responsible for the continuation of the project.
As administrative agents with J.P. Morgan, the companies received a $2.2 billion construction loan to end the construction of the Fontainebleau Las Vegas Resort & Casino.
Jacob Francis, president of Koch Real Estate Investments, said in an official statement, “We have secured construction loans through J.P. Morgan, SMBC, Blackstone Real Estate Debt Strategy, Goldman Sachs, Guggenheim and real estate investment trust VICI Properties. J.P. Morgan served as administrative agent. We appreciate both the potential of this property and the expertise of those involved in capitalization, design and construction.
“Securing $2.2 billion in funding in today’s market represents widespread confidence in the project and a team that has come together to bring it to Las Vegas.”
But the $2 billion project originally began in 2009. However, the project was put on hold after founders did not have enough funding to continue, namely a lack of investors, with 75% completion of the project.
During that time, the project finally fell into the hands of Jeffrey Soffer, president and CEO of Fontainebleau Development, after experiencing a bankruptcy foreclosure and reclaiming the 67-story, blue-glazed hotel casino through the hands of two owners.
Since then, we have been continuously developing projects for the past year. 슬롯머신