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LAS VEGAS-Societe Generale Corporate & Investment Banking has led a syndicate of banks in funding a $232.5-million pre-development credit facility for the W Las Vegas Hotel, Casino & Residences, a planned $1.7-billion development slated for 21 acres just off the Strip in the Harmon Avenue corridor. The Paris-based lender says the bank syndicate provided the developers a $195-million, first-lien term loan and a $37.5-million second-lien term loan.

The project is a joint venture of Starwood Hotels and Resorts Worldwide Inc., which owns the W brand, and Edge Resorts. Edge Resorts is a group of investors that includes poker player Reagan Silber, former IFilm CEO Adam Frank and venture capitalist Trevor Pearlman. GlobeSt.com first reported on the project in August.

Edge Resorts owns 75% of the venture; Starwood owns the remainder and will manage the hotel. The group acquired the land for the project in mid-2005 for $108.2 million, or $5.15 million per acre.

The JV will use the funds in part to refinance an existing $95-million credit facility. The proceeds also will be used to fund expedited pre-development reserve accounts and to acquire additional land adjacent to the existing property acquired for the project.

Michael Kim, managing director of gaming and lodging for Societe Generale CIB, declined comment on the specifics of the loan agreement. Financing for the construction of the project is expected to be completed in the third quarter of 2006. It likely will consist of a mixture of debt, sponsor equity, and outside equity.

The development site is located at the intersection of Harmon Avenue and Koval Lane, just east of the Strip. The project calls for 3,000 hotel and condominium units, 300,000 sf of meeting space, a 75,000-sf casino, an undisclosed amount of retail space, a day spa and a dozen bars and restaurants.

Condo owners will have full use of the property's facilities and amenities, as well as access to maid service, 24-hour room service and concierge services. Units were to go on sale in the fourth quarter of 2005, with prices starting at $550,000.

Pearlman is a Dallas-based venture capitalist and former trial lawyer. Silber is an investor and poker player who splits his time between Las Vegas and Bel Air, CA. Frank is the former CEO of IFilm who, prior to that, worked for Yahoo developing strategic partnerships with major media and entertainment companies. Pearlman and Silber at one point started a law firm together, and Silber is a friend of Frank's who also was an investor in IFilm.

Instant Insights /

Edge, Starwood Land $232M in Pre-Development Financing for Vegas Resort

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