Owners of New Frontier site to get loan extension

The owners of the vacant New Frontier site have reached an agreement in principal to extend a loan used for the purchase, the Israeli-based partner in the joint venture owning the land said in a statement.

Elad Group will receive a 42-month extension to repay a $625 million loan until August 2012, according to an agreement reached with its lenders.

Repayment of the loan was original postponed last August until May by lenders Goldman Sachs and Credit Suisse.

The development group is a joint venture between New York-based Elad, controlled by Israeli billionaire Yitzhak Tshuva, and Israel’s Property and Building Corp.

Elad owns New York’s Plaza Hotel and plans to use the Plaza name on a proposed $5 billion resort on the 35 acres across from Wynn Las Vegas.

Elad Group said in December it would seek an extension beyond May because of the economic meltdown.

The developers bought the New Frontier in August 2007 for $1.24 billion from Phil Ruffin, who in turn used some of the money to sign a deal in December to purchase Treasure Island from MGM Mirage for $775 million.