(Read more on the debt and equitymarkets.)

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LAS VEGAS-Falcon Group has refinanced and increased itspre-development bridge loan for Pinnacle Condominium Resort. The$850-million, 1,100-unit near-Strip development is planned for 12acres at the intersection of West Tropicana Avenue and CameronStreet, across from the Orleans hotel casino. The new $50-millionfirst mortgage loan takes out a previous $40-million loan by thesame lender, New York City-based Berkshire Capital.

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The developer and landowner is the Falcon Group. Falcon Groupincludes the Falconi Group, Praxis Resources Inc. and ElysiumEnterprises. Falconi and Praxis are real estate developmentcompanies. Elysium Enterprises is led by Mike Bellon, a locallybased entrepreneur and real estate developer.

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While the specifics of the loan were not released by the partiesinvolved, pre-development loans typically have a term of one tothree years and short-term private money typically carries aninterest rate on the plus side of 10%. Berkshire senior loanofficer Timothy Callahan, who originated the loan, tellsGlobeSt.com the pre-development loan will be paid off by theconstruction loan, which is expected to come in around $550million.

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Pinnacle is designed as a "vertical neighborhood" in twocurvilinear, 36-story towers connected by three sky bridges.Amenities are slated to include a three-acre pool deck on the sixthfloor that includes a putting green; a pet-friendly area; aone-quarter-mile jogging track; and a "drive-in" movie theater. Thedevelopment also will include multiple food and beverage outlets; afully equipped fitness center; and a full-service spa; street-levelretail and executive office space.

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The towers were designed by Jon Sparer of Youngblood WuchererSparer Architects Ltd. The sales office for the project has beenopen for the better part of a year. The condo units areapproximately 40% pre-sold, according to local industrysources.

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Preconstruction unit pricing is in the mid-$300,000's for studiounits averaging just under 600 sf. One bedroom units start in the$400,000s, two-bedroom units in the low $600,000s and three bedroomunits in the mid $900,000s. There also will be suites in the skybridges, two-floor penthouses and 31 townhomes surrounding the pooldeck.

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Publicly held Interstate Hotels & Resorts of Arlington, VA,has been tapped to manage the resort. Absentee owners can choose tohave their units rented out on a short-term basis through anin-house turn-key guest residency program.

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