Fontainebleau Las Vegas, a new $3.1-billion Strip resort, is suing its lenders for reneging on a critical $800-million construction loan. The 63-story, 3,815-room development is about 70% complete and scheduled to open in October. On April 23, an investment group led by Miami-based developer Jeffrey Soffer filed a $3-billion lawsuit in Clark County District Court against the project’s 11 lenders for refusing to provide prearranged financing. The developer already has invested over $2 billion in the project. A deepening recession and frozen credit markets make new financing difficult. Fontainebleau had hoped to raise $700 million to $900 million through condominium presales. Without the promised loan, revenue will never be realized, the complaint said.
Lawsuit Filed Against Las Vegas Lenders To Restore Financing
April 29, 2009