Unstable Dream Las Vegas Resort May Have Found New Life

Article by : Erik Gibbs Oct 26, 2023

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According to documents submitted to Clark County, construction on the Dream Las Vegas casino resort located on the Strip may recommence in early 2024. As a result, the owner of the resort, a proposed 531-room boutique hotel situated on the south side of the Strip, has sought an extension for the project’s building permits from Clark County.

In an accompanying letter dated October 4, the extension was justified by ongoing efforts to resolve financing issues, with plans for construction to resume in January 2024.

The letter, prepared by the law firm Kaempfer Crowell representing the project’s developers, stated that a bridge loan was expected to be finalized within two weeks, followed by the full capital stack (comprising equity and debt) to be completed by December 2023.

The project had been halted in early 2023 due to financial setbacks, with developers reporting a debt of $25 million to $30 million for work already completed. The overall project is estimated to cost between $550 million and $575 million.

Records filed with Clark County reveal multiple liens filed against the Dream property since February, involving various subcontractors and McCarthy. McCarthy filed a lien on March 10 and amended it on July 27, indicating a total lien amount of just under $71.5 million.

McCarthy has received $49.3 million in payments but could incur a total of $404.3 million in work, materials and equipment costs related to the project.

McCarthy has not commented on the liens, but Shopoff, the project’s developer, stated that the liens would be settled once financing was secured.

The developer confirmed that it anticipates finalizing an updated construction loan by the end of the year. The pause in construction will likely delay the project’s opening by about a year, with the original end-of-2024 opening now targeting a “late 2025” launch.

Shopoff expressed gratitude for the continued support of McCarthy, Hyatt and Clark County officials, emphasizing their commitment to completing the project and contributing to Las Vegas’ resort offerings.

Financial terms of the construction loan were not disclosed, and Contour, the project’s design firm, did not provide a response to inquiries.