VICI Properties, a real estate investment trust, agreed to provide up to $350 million in mezzanine loan financing to a partnership between Fontainebleau Development, a builder, owner and operator of luxury hospitality, commercial and retail properties, and Koch Real Estate Investments, the real estate investment arm of Koch Industries, to complete the construction of Fontainebleau Las Vegas, a 67-story hotel, gaming, meeting and entertainment destination coming to the north end of the Las Vegas Strip.
Fontainebleau Las Vegas spans 25 acres and nine million square feet in a coveted location on the northern end of the Las Vegas Strip directly adjacent to the Las Vegas Convention Center, and will feature approximately 3,700 luxury hotel rooms, 550,000 square feet of customizable convention and meeting space, and a world-class collection of gaming, dining, retail, lifestyle and health and wellness experiences. Fontainebleau Las Vegas is expected to open in the fourth quarter of 2023.
“We are thrilled to partner with both Fontainebleau Development and Koch Real Estate Investments, global leaders in experiential real estate development and investing, on the financing of Fontainebleau Las Vegas,” David Kieske, executive vice president and CFO of VICI Properties, said. “We believe the addition of the property will contribute to the increasing vitality of the north end of the Las Vegas Strip. This transaction further strengthens VICI’s track record of creatively structuring and investing our capital to generate AFFO growth for our stockholders.”
The investment is expected to be funded in accordance with a construction draw schedule.