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LAS VEGAS-Falcon Group has refinanced and increased its pre-development bridge loan for Pinnacle Condominium Resort. The $850-million, 1,100-unit near-Strip development is planned for 12 acres at the intersection of West Tropicana Avenue and Cameron Street, across from the Orleans hotel casino. The new $50-million first mortgage loan takes out a previous $40-million loan by the same lender, New York City-based Berkshire Capital.
The developer and landowner is the Falcon Group. Falcon Group includes the Falconi Group, Praxis Resources Inc. and Elysium Enterprises. Falconi and Praxis are real estate development companies. Elysium Enterprises is led by Mike Bellon, a locally based entrepreneur and real estate developer.
While the specifics of the loan were not released by the parties involved, pre-development loans typically have a term of one to three years and short-term private money typically carries an interest rate on the plus side of 10%. Berkshire senior loan officer Timothy Callahan, who originated the loan, tells GlobeSt.com the pre-development loan will be paid off by the construction loan, which is expected to come in around $550 million.
Pinnacle is designed as a "vertical neighborhood" in two curvilinear, 36-story towers connected by three sky bridges. Amenities are slated to include a three-acre pool deck on the sixth floor that includes a putting green; a pet-friendly area; a one-quarter-mile jogging track; and a "drive-in" movie theater. The development also will include multiple food and beverage outlets; a fully equipped fitness center; and a full-service spa; street-level retail and executive office space.
The towers were designed by Jon Sparer of Youngblood Wucherer Sparer Architects Ltd. The sales office for the project has been open for the better part of a year. The condo units are approximately 40% pre-sold, according to local industry sources.
Preconstruction unit pricing is in the mid-$300,000's for studio units averaging just under 600 sf. One bedroom units start in the $400,000s, two-bedroom units in the low $600,000s and three bedroom units in the mid $900,000s. There also will be suites in the sky bridges, two-floor penthouses and 31 townhomes surrounding the pool deck.
Publicly held Interstate Hotels & Resorts of Arlington, VA, has been tapped to manage the resort. Absentee owners can choose to have their units rented out on a short-term basis through an in-house turn-key guest residency program.
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