Construction work on Dream Las Vegas has fully stopped, according to the local media, Las Vegas Review-Journal. The developers had to stop the project as its owners sought new funding for the hotel-casino project.
The Las Vegas casino-hotel broke ground on Las Vegas Boulevard south of Russell Road last year.
Dream Las Vegas casino developer owes between $25 – $30 million
Dream developer Bill Shopoff told the Las Vegas Review-Journal that he owes between $25 to 30 million for work on the resort. He said construction “will restart once the terms of the financing are finalized.”
Shopoff, president, and CEO of Shopoff Realty Investments said: “Work has fully stopped at the site, other than anything required for safety.”
Shopoff said his group is in “active discussions” with its lender and expects terms to finalize in the upcoming weeks. “Clearly, we’re delayed on getting some financing,” he said in an interview.
Dream should come in the form of a smaller, boutique-style experience with thousands of rooms apiece. Once completed in late 2024, the project would feature:
- A 21-story luxury hotel
- 531 guestrooms
- Seven dining and nightlife venues
- A rooftop pool deck
- 12,000-square-foot convention center
- Small casino floor
Shopoff and real estate firm Contour, led by CEO David Daneshforooz, are partners on the project.
The Dream is taking longer than expected
As Shopoff explained, Dream will cost $550 million to $575 million. He said: “The owners have been paying for the project with cash so far and are working on a $400 million-plus funding package.”
As the Review-Journal reports, Shopoff mentioned his team is in daily contact with Dream’s lead builder, the contractor McCarthy Building Companies. The project’s ownership group “fully intends” to honor its agreements, pay its builders and finish the resort.
Developers had a term sheet from a lender last summer when they broke ground on the resort. But closing the deal has been prolonged, taking longer than expected. Shopoff referred to last year’s interest rate hikes by the Federal Reserve and recent instability in the banking industry. He estimated his team is two to four weeks from completing its financing, which would get the project back on track.
$43.3M in payments received, $40.2M more due for work already done
McCarthy Senior Vice President Ross Edwards indicated that roughly 1,200 construction professionals would work on-site. In a news release on Dream’s ceremonial ground-breaking last July, Edwards said:
“I can assure you our industry is filled with enthusiasm around the opportunity to help build a new Las Vegas landmark and will do so in a work environment that is committed to safety and is welcoming, inclusive, and empowering to all.”
A lien notice, recorded Mar. 10 by McCarthy and signed by Edwards, stated that about $43.3 million in payments had been received. But almost $40.2 million was “currently due for work performed,” according to Clark County records.
In February 2023, Hyatt Hotels Corp. acquired Dream Hotel Group, which operates the resort. When Hyatt announced the buyout last fall, it said it was paying a base price of $125 million. That was with an additional $175 million due over the next six years “as properties come into the pipeline and open.”