A Lost Dream? Shopoff Transfers Ownership of Hotel-Casino Project
The long-stalled Dream Las Vegas hotel-casino project has a new owner following a legal settlement over unpaid bills. Developer Bill Shopoff – the president and chief executive officer of Shopoff Realty Investments – has transferred ownership of the partially built site to the project’s lead contractor, McCarthy Building Companies.
As previously reported by AltsWire in November 2020, Shopoff Realty launched its first qualified opportunity zone fund, Shopoff DLV QOZ, to raise $200 million for the project. The firm reported to AltsWire that they shared an intent with McCarthy to finalize bridge financing and secure the asset, which would then secure the funds of the investors in the qualified opportunity zone fund.
The project broke ground in 2022 in the midst of a designated opportunity zone on the Las Vegas Strip and was initially planned to be a 20-story, 527-room resort. Work on the project came to a halt in March 2023. At the time, Shopoff Realty cited rising interest rates and banking turmoil as the reasons for a funding delay. The lead contractor, McCarthy, subsequently filed a lien against the property for over $40 million in unpaid work, with several subcontractors also filing liens.
Despite Shopoff Realty’s assurances that construction would resume once financing was finalized, court documents later revealed that the developers had “lost their anticipated lending source.” The project, located near the “Welcome to Fabulous Las Vegas” sign and Harry Reid International Airport, was about 19% complete at the time with only foundational work like basement excavation and concrete piles finished.
According to property records, the land was transferred to McCarthy last week as part of a settlement for the “non-payment” of services.
The deed that recorded the ownership change listed the total value/sales price of the property as $17.2 million.
“The Dream Las Vegas general contractor, McCarthy Building Companies, has recorded a deed-in-lieu of foreclosure on the property – a cooperative and strategic step taken to protect their interests without initiating a formal foreclosure process,” said Bill Shopoff.
Responding to a series of questions from AltsWire, he continued, “This reflects the collaborative nature of our relationship and our shared commitment to the long-term success of the project.”
McCarthy acquired the property after paying off the other lien holders, which included electrical, steel, and drilling companies. The company told third-party reporting that while it has no specific plans for the site, it is invested in Las Vegas and will work with Clark County officials to find the best solutions.
“We are working diligently to finalize project financing in order to position ourselves to secure control of the asset and continue advancing the project in alignment with our long-term vision, including McCarthy remaining as the contractor for the project. Additionally, all entitlement approvals remain active with Clark County,” concluded Bill Shopoff.
Regardless of future developments, the current new ownership marks a significant turn for the project, which had faced numerous hurdles even before its funding issues. Early in its development, the project required design changes to address security concerns from the U.S. Transportation Security Administration and major airlines due to its proximity to the airport.
Shopoff Realty Investments is an Irvine, Calif.-based real estate firm with a 32-year history of value-add and opportunistic investing, focusing on proactively generating appreciation through development projects, the repositioning of commercial income-producing properties, and the entitlement of land assets.
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