A Clark County District Court judge approved the sale of Downtown Grand Hotel & Casino on Oct. 7, clearing the way for Vegas Ventures LLC to take ownership and for the Las Vegas property to exit receivership. The casino was placed in receivership in January after its owner defaulted on a construction loan.
The court rejected objections from 18 limited partners in the casino venture, ruling they lacked standing and merit. The sale price was not disclosed in court documents, which also do not establish whether the transaction has been finalized.
Loan default led to receivership
Ownership defaulted in December on a $90 million construction loan for the Gallery Tower, which opened in September 2020. The amount in default has since grown to more than $105 million.
Banc of California sought the receivership and sued casino owner CIM Group after the default. Receivership allows secured lenders to seek recovery when a borrower fails to make loan payments.
The property is set to change hands without transferring liens or claims. Debt obligations with the previous lender will be addressed through the receivership process.
Vegas Ventures plans new hotel operator
Vegas Ventures is based in Massachusetts and is headed by Boston real estate developer William “Bill” Keravuori. His previous projects include George White Stadium, a soccer venue in Boston, as well as commercial, industrial and residential developments.
Court documents show Vegas Ventures placed $2.7 million in escrow on Aug. 13 to acquire the property. The proposed arrangement would transfer the lease with FifthStreet Gaming, which operates the casino. Vegas Ventures plans to select a different operator for the hotel, dining venues and other facilities.
Paul Huygens of Henderson-based restructuring advisory practice Province LLC served as receiver. After reviewing potential proposals, he determined Keravuori’s offer was the best available, and the court approved it.
Downtown Las Vegas market
CIM, a real estate and infrastructure development firm, bought the former Lady Luck casino for $100 million in 2007. The property underwent a $100 million renovation in 2013.
Downtown Grand remains open despite its financial difficulties. Las Vegas has added casino developments in recent years: Derek Stevens, owner of the D and Golden Gate, opened Circa in 2020, and Station Casinos opened Wildfire Casino on Fremont Street in 2023.
The sale approval follows Clark County commissioners’ recent approval of a new casino project on the Las Vegas Strip, across from Mandalay Bay.
