Pinnacle Developer Secures Interim Financing

The 12-acre off-Strip development is planned for the intersection of West Tropicana Avenue and Cameron Street, across from the Orleans hotel casino. The developer is the Falcon Group, which also owns the land. 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 Las Vegas-based entrepreneur and real estate developer.

The $40-million pre-construction loan was funded by Berkshire Capital Financial. The New York City-based lender also will fund the construction loan assuming the developers can pre-sell at least half of the units. A developer's representative declined to comment on how many refundable deposits have been accepted; a company statement describes the number as a "substantial percentage."

Pinnacle is designed as a "vertical neighborhood" in two curvilinear, 36-story condominium resort towers connected by three sky bridges. The towers were designed by Jon Sparer of Youngblood Wucherer Sparer Architects Ltd.

Amenities are slated to include a three-acre pool deck on the sixth floor that includes a pool with island, private cabanas, a putting green; a pet-friendly area; a one-quarter-mile jogging track; and a "dive-in" movie theater. The development also will include multiple food and beverage outlets; a fully equipped fitness center; and a full-service spa; ground-floor retail; and executive office space.

Last month, the developers tapped publicly held international hotel operator Interstate Hotels & Resorts of Arlington, VA, to manage the property. Absentee owners will be able to have their units rented out on a short term basis through an in-house turn-key guest residency program.

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 31 townhomes surrounding the pool deck.