The Greek Isles will remain open — for now.
The property’s loanholders completed a foreclosure and acquisition of the hotel-casino last week. And the new ownership group said Wednesday it intends to keep the property open “while assessing the hotel and casino’s future.”
Canpartners Realty is holding company for Los Angeles-based Canyon Capital Realty Partners and Bronx, N.Y.-based Spectrum Group Management.
“We are now focused on assessing the property and developing a plan to move forward,” Richard Bosworth, Canyon senior director, said in a statement announcing the acquisition. “We want to make it clear that ownership is committed to keeping the Greek Isles Hotel and Casino open for business as we determine the next steps for the property.”
The Greek Isles, formerly the Debbie Reynolds Hotel, has 202 hotel rooms in a 14-story tower on about 6 acres on Convention Center Drive west of the Las Vegas Convention Center.
The property has a restaurant, showroom and a slots-only casino with nearly 90 machines operated by United Coin Machine Co., which has run the casino since 2001 under a lease agreement.
Canyon and Spectrum provided a $56 million loan in 2007 to an investment group to buy the property for $83 million.
GIH-SPE II, a group led by developer Harold Rothstein, defaulted on the loan in August 2008 and filed for Chapter 11 bankruptcy protection in Delaware in April.
Canpartners filed a lawsuit in January asking for a receiver to take over the 202-room hotel’s operations from Illinois-based hotel operator Mark IV Hospitality.
Rothstein had planned to implode the property in late 2008, replacing it with two towers with 780 hotel rooms, 77,000-square-foot casino and 71,200 square feet of convention, retail and restaurants.
Contact reporter Arnold M. Knightly at firstname.lastname@example.org or 702-477-3893.