Wells Fargo Bank has provided a $311.8m loan to finance part of the The Howard Hughes Corporation’s Downtown Summerlin project in Las Vegas, Nevada.
The three-year loan has an initial maturity date of 15 July, 2017, with two one-year extensions and an initial interest rate of one-month LIBOR plus 2.25%.
The loan will be used to the finance a 1.6m-square-foot retail and office portion of the project, according to a United States Securities Exchange Commission form (8-K) filed by the Dallas-Texas-based developer Howard Hughes.
Downtown Summerlin is a 400-acre retail, entertainment, office, hotel and multi-family residential development that sits within the 22,500-acre master-planned Summerlin community.
The retail component will feature more than 125 shops and restaurants, including Macy’s, Dillard’s, Nordstrom Rack, American Eagle, Victoria’s Secret, Old Navy and Trader Joe’s.
David Weinreb, CEO of The Howard Hughes Corporation, said that “high demand from [Summerlin] residents and strong interest from leading retailers” have created the “ideal time” to go forward with the project.
The previous developer, Chicago-based General Growth Properties, ceased construction on the project after falling victim to the recession in the fall of 2008 and subsequently filed for bankruptcy protection in April 2009.
The company had plunged $27bn into debt, reportedly setting a record for the largest real estate bankruptcy in history, according to the Las Vegas Sun, which first reported on the new construction loan.
A spinoff of General Growth Companies, Howard Hughes took control of Summerlin and several other projects nationwide, even bashing its predecessor at one point for lacking the “courage” to complete the project.
The previous developer had spent more than $150m on Downtown Summerlin and Howard Hughes has spent at least an additional $181m.