November 11, 2021
Social Media Intern
On Tuesday, the new owners of Fontainebleau Las Vegas performed a gold-shovel ceremony to officially announce that building on the casino resort on the Strip's north end had begun. The 67-story building is expected to open in the fourth quarter of 2023.
The Property Was Purchased in February Through a Partnership
Fontainebleau Construction has purchased the stalled development at 2777 Las Vegas Blvd. S. This Florida-based corporation owns, plans, constructs, and manages commercial, luxury, hospitality, and retail facilities. The transaction was made in collaboration with Koch Real Estate Investments, a Dallas-based firm. Even Marriott expressed interest in the property earlier this year, but ultimately decided against it.
The highly anticipated hotel-casino project has almost always been led by Jeffrey Soffer, Chairman and CEO of Fontainebleau Development. Even though it began construction in 2007, the project went bankrupt in 2009 due to the real estate slump and the Great Recession. The company was then purchased by Carl Icahn, a well-known billionaire, in 2010. In 2017, Icahn sold it to Steve Witkoff, a New York developer. In honour of his late son, Witkoff planned to call the property Drew Las Vegas.
Soffer stated that the company is happy to have the opportunity to complete the project and promote this brand as one of the world's largest hospitality destinations. He also stated that when it comes to brand extension, Fontainebleau Development is very picky, and Las Vegas is the company's first choice. The structure is in "excellent condition," according to Soffer, and construction has already begun.
Due to Marriott's withdrawal, the resort will be operated solely by Fontainebleau Development. The project is nearing completion, with 75 percent of the work accomplished. It is located on the Strip's north end, spanning 25 acres, and including over 9 million square feet, and is close to the Las Vegas Convention Center's West Hall. There will be around 3,700 rooms available, as well as a convention centre with over 550,000 square feet of area. There will also be pool experiences, shops and restaurants, wellness and spa services, and nightlife options.
According to Brett Muffson, President of Fontainebleau Development, Las Vegas tourism has shown incredible resilience in the last two years, and the company believes that the target opening date will perfect its vision while also positioning Fontainebleau Las Vegas for massive success in the new era of visitation and growth. Nevada's Commission has revealed a multi-million dollar recovery plan aimed at restoring the region to its previous form.
Jake Francis, head of Koch Real Estate Investments, on the other hand, noted that the two firms' cooperation was grounded in their shared idea that Las Vegas is more than just a destination. It is a global brand that attracts visitors from all over the world who come to enjoy the greatest level of entertainment, nightlife, and locations.
The gold-shovel ceremony drew some 150 people, including local politicians and developers. Mufson commended the Las Vegas community for its support of the project and informed the participants that the developers were welcomed into the marketplace with open arms, which he appreciated.
Soffer described his comeback as a "crazy narrative" after conceiving the initiative years ago. He did say, though, that he was returning and that undertakings like these don't require just one person. Instead, a large group is required to complete this task. The structure has always been fantastic, and the company is thrilled and delighted that it has returned full circle.
Fontainebleau Development engaged Richardson Construction, a Las Vegas-based contractor, to complete the project, which will unveil its development and design partners in the coming months.
Fontainebleau will employ approximately 6,000 permanent workers once it is completed. Its construction will generate around 3,200 employment in the Las Vegas economy. The governor of Nevada, Steve Sisolak, praised the project's economic benefits and new jobs, calling it "simply amazing" to see it resurrect. This endeavour, according to Sisolak, demonstrates that every problem can be overcome.
The Las Vegas Convention and Visitors Authority's President and CEO, Steve Hill, noted that this project is exciting for both the developers and the community, given the resort's proximity to the Convention Center. He went on to say that the developers' excitement is palpable, and that "their eyes light up" when they see the potential of the project for Las Vegas and the Convention Center.
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