Key lenders for the stalled $3.1-billion Fontainebleau complex on the Las Vegas Strip have lost confidence that the 70% complete project can be finished through a bankruptcy filing earlier this year. A key steering group moved on Sept. 25 to liquidate the project through a sales process supervised by a court-appointed trustee. Project developer Fontainbleau Resorts LLC cited the lenders’ refusal to provide $656 million in pre-approved funding as the reason for the bankruptcy filing. Completing the 3.4-million-sq-ft project would require about $1.5 billion, according to the lenders, but court documents contend the development would be worth only $1.764 billion
The market is generally healthy and steadily growing, and margins are up for large specialty contractors. Further, advances in design tools and owner demand for collaboration are giving subcontractors a seat at the table early on in projects.