For Some Developers, The Pandemic Has Brought Clarity

Uncertainty has become the buzzword of the pandemic, but for developers, the onset of the recession has actually brought clarity to project planning. Bill Shopoff of Shopoff Realty Investments is developing the Dream Las Vegas hotel under Shopoff DLV QOZ, the firm’s qualified opportunity zone fund. Instead of delaying or hindering the pandemic, Shopoff says the firm has more clarity on delivery timing and expectations.

“Interestingly, an unexpected effect of the pandemic was the resulting recession, which was ominously lurking in the future prior to the pandemic, and came to the forefront in March,” Shopoff, president and CEO of Shopoff Realty Investments, tells GlobeSt.com. “This brought specificity to the issue and better clarity about future timing, including a dramatic V-shaped recovery. Had the recession arrived in 2023, when our project was ready for occupancy, it could have cause greater concern. However, all indicators are that by the time we open to the public, the economy nationally and in Las Vegas will be in a robust recovery, and that our timing couldn’t be better.”

As a result, Shopoff is not expecting the pandemic to have any negative impact on the hotel development. “In this case, we are fortunate that the resulting recession timing will not hamper our project, and that we will be able to provide jobs, revenue and other benefits to the community this will serve,” he says.

At most, delays in project planning are the biggest challenges from the pandemic, but Shopoff says that delays are not uncommon for experienced developers. “The pandemic has affected us all and real estate specifically in many ways,” he explains. “The complexities of sourcing, negotiating, performing due diligence, working with municipalities on zoning and entitlements, and just generally interacting with others is more difficult. Fortunately, our firm has spent decades working through complex issues and a myriad of challenges, so we were well prepared and the pandemic has had minimal impact on our company and our projects, including our Shopoff DLV QOZ fund.”

While hotels have been among the most severely impacted asset classes during the recession, Shopoff is confident in the project, which won’t deliver until 2023. “Dream is one of the leading global hospitality brands. We knew Dream had been looking for many years in Las Vegas to create a flagship location, but couldn’t find the right location or developer,” he says. “It was convergence of opportunities that brought Dream and this project together, and it is a perfect fit. The excitement, vibe, quality and fresh approach that Dream will bring to this property, combined with the cutting-edge, modern and enticing design of the development, is at the beginning of a new type of experience that is changing the way visitors will encounter and remember Las Vegas for years to come.”