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November 23, 2014

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Developer secures $312 million loan for Summerlin mall, office project

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L.E. Baskow

Construction continues on the new Downtown Summerlin project as developers lead a media “hard hat” tour of the project on Thursday, May 15, 2014.

Downtown Summerlin Project Update

Construction continues on the new Downtown Summerlin project as developers lead a media Launch slideshow »

Summerlin developer Howard Hughes Corp. has secured a nearly $312 million loan to finance its massive retail and office project under construction near Red Rock Resort.

The company said in a regulatory filing today that it obtained the credit package Tuesday from a group of lenders led by Wells Fargo Bank.

The loan matures July 15, 2017, but has two one-year extensions. Under the deal, Howard Hughes can borrow up to $311.8 million.

Howard Hughes had said in February that it expected to land a $312 million loan by June 30 to cover much of the construction costs of the 1.6 million-square-foot, 106-acre project then known as Shops at Summerlin, on Sahara Avenue at the 215 Beltway.

At the time, the developer did not say which lender, or lenders, would put up the cash.

Now part of the broader Downtown Summerlin project, the former Shops at Summerlin has been pitched as a pedestrian-friendly “urban center” with more than 125 shops and restaurants, including Macy’s, Dillard’s, Nordstrom Rack and Trader Joe’s.

The suburban retail hub is slated to open Oct. 9.

Dallas-based Howard Hughes resumed construction of the once-mothballed project last year. Previous owner General Growth Properties halted work in fall 2008 during the national economic meltdown, leaving a steel skeleton off the Beltway, a constant reminder of Las Vegas’ building bust.

Chicago-based General Growth filed for bankruptcy protection in spring 2009, and when it emerged the next year, it spun off Howard Hughes as a separate company with control over the Summerlin retail project, the broader 22,500-acre Summerlin master-planned community and several other projects nationwide.

As of March 31, Howard Hughes had spent $181 million in development costs on the former Shops at Summerlin.

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