Lucky Dragon near Las Vegas Strip faces foreclosure

The Lucky Dragon, after closing its casino and restaurants this month, now faces foreclosure.

The off-Strip, Chinese-themed hotel was hit with a default notice months ago and is scheduled to come up for grabs at a Feb. 6 foreclosure auction, Clark County records show.

If Lucky Dragon is repossessed or sold at auction, it wouldn’t be the first time in recent years that an off-Strip hotel traded hands through foreclosure, and by itself, it doesn’t necessarily mean the hotel is closing. But it’s another sign of financial distress at the year-old boutique resort.

The hotel has shed staff and struggled to draw big crowds. Its lead building contractor claimed it was owed millions of dollars for unpaid work, the hotel temporarily closed its casino and eateries, and workers have been taking apart some of its 200-plus slot machines — all in all, a brutal start for the first resort built from the ground up in Las Vegas since the recession.

Lucky Dragon developer Andrew Fonfa took out a $90 million loan in spring 2016, well after construction had started, property records show. Fonfa’s group sent out a news release at the time, without citing the loan, saying the project was “fully financed.”

(Las Vegas Review-Journal)

The 2.5-acre resort — consisting of a nine-story hotel and a 27,500-square-foot casino in separate buildings — opened in late 2016 at 300 W. Sahara Ave., just west of Las Vegas Boulevard.

A default notice was filed this past September in connection with the loan, and a notice for the foreclosure sale was filed last week, county records show.

According to the auction notice, $48.9 million is owed on the loan.

Fonfa, founder of ASF Realty &Investments, could not be reached for comment Tuesday.

Bankroll

Lucky Dragon’s $90 million loan was issued by an obscure company called Snow Covered Capital, which records indicate is linked to San Francisco real estate investor Enrique Landa of Associate Capital.

Landa did not return calls seeking comment Tuesday.

Lucky Dragon reportedly raised $60 million in EB-5 funding. Foreigners can obtain U.S. residency through the federal EB-5 visa program if they put at least $500,000 into a business venture and the funding creates at least 10 full-time jobs.

It wasn’t immediately clear whether Lucky Dragon’s EB-5 funds were connected to the Snow loan.

Job cuts

Lucky Dragon was designed to cater primarily to Asian-American and Asian immigrant customers locally and along the West Coast. Fonfa, the hotel president, expected about 60 percent of the patrons to be locals.

Hundreds of people turned out for the grand opening, but overall, crowds at Lucky Dragon have been relatively small. Just a few months after opening, the resort closed one of its restaurants and axed about a hundred workers, including the general manager, to save costs, the Las Vegas Review-Journal has reported.

Chinese gamblers playing at other casinos indicated last year to the Review-Journal that the problem was not Lucky Dragon’s food and entertainment offerings but rather its comparatively stingy gaming and comp policy.

On Jan. 4, a few weeks after the RJ reported on the hotel’s struggles, management announced that it was “beginning the process of repositioning and, in doing so, will have a reduction in staff while it temporarily closes all gaming and restaurant operations.”

The casino floor and eateries would resume operations “within six months,” the company said. The hotel building would remain open, as would the gift shop and the hotel’s Cha Garden restaurant and bar on the first floor.

Litigation

Meanwhile, Lucky Dragon also was hit with litigation last year.

Midwest Pro Painting sued the casino’s ownership company, a contractor and an insurance firm in March 2017. Midwest Pro claimed it was owed $793,300 for its work on the Lucky Dragon.

As part of the case, Lucky Dragon’s general contractor, Penta Building Group, filed court papers alleging it had been paid around $76.4 million but was owed about $7.4 million by Lucky Dragon for unpaid work.

Midwest Pro and Penta later agreed to dismiss their claims, court records show.

The two firms, along with their attorneys in the case, did not respond to requests for comment Tuesday.

Will Heaton, a lawyer for Lucky Dragon, referred questions to hotel executives.

Other off-Strip hotels that changed hands through foreclosure in the past decade, according to property records and news reports, include the Artisan on Sahara Avenue in 2010, the LVH (now Westgate) on Paradise Road in 2012 and The Westin on Flamingo Road at Koval Lane in 2016.

Contact Eli Segall at esegall@reviewjournal.com or 702-383-0342. Follow @eli_segall on Twitter. Review-Journal writer Todd Prince contributed to this report.

ad-high_impact_4
Local
North Las Vegas Water Meters
Randy DeVaul shows off the new water meters that the city is installing.
Project 150 Thanksgiving 2018
About 100 volunteers for Project 150 box Thanksgiving meals for high school students and their families in Las Vegas on Wednesday, Nov. 14.
Three Square’s Maurice Johnson Talks About Food Waste
Three Square’s director of operations Maurice Johnson talks about food waste.
Parade preparation nears completion
Downtown Summerlin prepares for its annual holiday parade.
Clark County Wetlands promotes 2019 Wetland Walker Program
This year the park will be celebrating the Northern Flicker. The program is designed to teach about that bird, and encourage people to visit the Wetlands and walk the same distance the bird migrates each year.
Poet’s Walk Henderson introduces storytelling
Residents enjoy a storytelling activity.
Downtown Summerlin hosts its annual Festival of Arts
People crowd to Downtown Summerlin for the 23rd annual Summerlin Festival of Arts in Las Vegas, Sunday, Oct. 14, 2018. (Caroline Brehman/Las Vegas Review-Journal)
Clark County educators debate alternative grading systems
Spring Valley High School principal Tam Larnerd, Spring Valley High School IB coordinator Tony Gebbia and retired high school teacher Joyce O'Day discuss alternative grading systems. (Marcus Villagran/Las Vegas Review-Journal) @marcusvillagran
Grandparents on the fire that killed three family members
Charles and Doris Smith talk about the night an apartment fire took the lives of three of their family members. (Marcus Villagran/Las Vegas Review-Journal) @marcusvillagran
New York artist Bobby Jacobs donated a sculpture to the Las Vegas Healing Garden
Bobby Jacobs, an artist from upstate New York, has spent much of the past year creating a sculpture of two separate angel wings. He donated the sculpture to the Las Vegas Healing Garden. (Bizuayehu Tesfaye/Las Vegas Review-Journal) @bizutesfaye
Weather will cool slightly through the end of the week
The weather will cool slightly through the end of the week., but highs are still expected to be slightly above normal for this year. (Bizuayehu Tesfaye/Las Vegas Review-Journal) @bizutesfaye
Mayor announces new public-private partnership
Mayor Carolyn Goodman announced the creation of the Mayor’s Fund for Las Vegas LIFE, a public-private partnership that will allocate money to the city’s neediest.
Fremont9 opens downtown
Fremont9 apartment complex has opened in downtown Las Vegas. (Marcus Villagran/Las Vegas Review-Journal) @marcusvillagran
Fall fairytale gets cozy at Bellagio Conservatory
Bellagio Conservatory introduces its fall-themed garden titled "Falling Asleep." (Marcus Villagran/Las Vegas Review-Journal) @marcusvillagran
What the house that Ted Binion died in looks like today
Casino heir Ted Binion died in this Las Vegas home in 1998. Current home owner Jane Popple spent over $600,000 to restore and modernize the home. (Marcus Villagran/Las Vegas Review-Journal) @marcusvillagran
Rescue Mission employees terminated
Don James, a former employee for the Las Vegas Rescue Mission, talks about the day his team was terminated. (Erik Verduzco/Las Vegas Review-Journal)
Raiders Cupcakes at Freed's Bakery
Freed's Bakery will have Raiders-themed cupcakes available in store and for order during football season. (Marcus Villagran/Las Vegas Review-Journal) @marcusvillagran
51s fans say goodbye to Cashman Field
Las Vegas 51s fans said goodbye to Cashman Field in Las Vegas, Monday September, 3, 2018. (Marcus Villagran/Las Vegas Review-Journal) @marcusvillagran
51s owner Don Logan's last weekend at Cashman Field
Don Logan, owner of the Las Vegas 51s, gives a tour of Cashman Field before the team's final weekend using the field. (Marcus Villagran/Las Vegas Review-Journal) @marcusvillagran
Business
A Facebook-branded space inside of Macy’s at the Fashion Show shopping center
A Facebook-branded space inside of Macy’s at the Fashion Show shopping center will showcase 13 small businesses in November and December and seven in January. Bizuayehu Tesfaye/Las Vegas Review-Journal @bizutesfaye
T-Mobile uses ticketing data to plan for event
T-Mobile Executive Director of Arena Operations explains how ticket sales data and demographics help plan staffing, vendors, parking and operations for an event.
Costco opens its doors in southwest Henderson
Costco has opened its fifth Las Vegas-area location near the intersection of St. Rose Parkway and Amigo Street. (K.M. Cannon/Las Vegas Review-Journal)
Las Vegas strip mall and office park
The Krausz Cos. and WG Group bought a strip mall and an office park in Las Vegas for nearly $80 million total. They acquired a portion of Tropicana Beltway Center in the southwest valley for $59 million. They also acquired the Westbay office complex in the Las Vegas Medical District. The buyers are former owners of The Gramercy, a once-mothballed mixed-use project in the Las Vegas suburbs. They sold The Gramercy in phases for more than $100 million.
Mario Barth talks about the growth of the tattoo industry
Celebrity tattoo artist and business owner Mario Barth talks about the growth of the tattoo industry at The World of Tattoo industry trade show at Planet Hollywood in Las Vegas
$7.5M Las Vegas pot dispensary opens near Las Vegas Strip
Planet 13, which bills itself as one of the largest dispensaries in the world, opened to the public Thursday. It has entertainment including an interactive floor and floating orbs. (K.M. Cannon/Las Vegas Review-Journal)
Caesars CEO to step down next year
Caesars Entertainment Corp. CEO Mark Frissora will leave the casino company in February. Frissora has been CEO since July 2015. He was named CEO right after Caesars' operating company filed for Chapter 11 bankruptcy protection Caesars Entertainment emerged from bankruptcy protection in October 2017 Before Caesars, Frissora spent seven years as chairman and CEO of Naples, Fla.,-based Hertz He led the consolidation of the rental-car industry through Hertz‘s acquisition of the Dollar Thrifty Automotive Group.
Planet 13 in Las Vegas adds twist to marijuana dispensary look
Planet 13, which bills itself as one of the largest dispensaries in the world, opened to the public Thursday. The dispensary is located near the intersection of Desert Inn Road and Sammy Davis Jr. Drive, near Trump International, in Las Vegas. Planet 13 has plans in the future for a coffee shop, a tasting room for marijuana-infused beer and wine, a lounge for consuming marijuana on site if that is legalized and space for food.
Caesars Entertainment opening 2 resorts in Dubai
Cove Beach will open on Meraas’ Bluewaters Island in Dubai in November and Caesars Palace Bluewaters Dubai and The Residences at Caesars Palace Bluewaters Dubai will open in December. (Caesars Entertainment)
Bellagio, MGM Resorts International’s luxury hotel turns 20
The more than 3,000-room Bellagio hotel is situated on the site of the former Dunes Hotel. The Dunes was imploded in 1993, and construction of the Bellagio started in 1996. It cost $1.6 billion to build, making it the most expensive hotel in the world at the time. The Bellagio was former Wynn Resorts Ltd. Chairman and CEO Steve Wynn’s second major casino on the Strip after The Mirage. MGM Resorts International acquired the property from Steve Wynn in 2000. (Tara Mack/Las Vegas Review-Journal)
Facial recognition software at G2E – Todd Prince
Shing Tao, CEO of Las Vegas-based Remark Holdings, talks about his facial recognition product. (Todd Prince/Las Vegas Review-Journal)
Former NBA player, Shaquille O'Neal, speaks about his new Las Vegas chicken restaurant
Former NBA player, Shaquille O'Neal, speaks about his new Las Vegas chicken restaurant. Bizuayehu Tesfaye/Las Vegas Review-Journal @bizutesfaye
Bobby Baldwin to leave MGM
MGM Resorts International executive and professional poker player Bobby Baldwin is set to leave MGM.
Caesars has new armed emergency response teams
Caesars Entertainment Corp. has created armed emergency response teams. They are composed of former military and law enforcement officials. "These teams provide valuable additional security capabilities,” Caesars spokeswoman Jennifer Forkish said. Caesars is hiring Security Saturation Team supervisors, managers and officers, according to LinkedIn. The company did not say how many people it plans to hire for the units. (Las Vegas Review-Journal)
Las Vegas, airlines prepare for CES
CES in January is expected to attract more than 180,000 attendees. (Las Vegas Review-Journal)
AGS partners with Vegas Golden Knights
AGS is the nation’s second-largest manufacturer of Class II slot machines used primarily in tribal jurisdictions. It announced a marketing partnership with the Vegas Golden Knights NHL team. (Las Vegas Review-Journal)
Lehman Brothers bet big on Las Vegas
Lehman Brothers collapsed 10 years ago, helping send the country into the Great Recession.
Fremont9 opens downtown
Fremont9 apartment complex has opened in downtown Las Vegas. (Marcus Villagran/Las Vegas Review-Journal) @marcusvillagran
Ross & Snow launches in Las Vegas
Luxury shoe brand Ross & Snow has opened in Las Vegas, featuring "functional luxury" with premium shearling footwear. (Bailey Schulz/Las Vegas Review-Journal)
Remote Identification and Drones
DJI vice president of policy and public affairs discusses using remote identification on drones. (Bailey Schulz/Las Vegas Review-Journal)
Drones and public safety in Nevada
Two representatives in the drone industry discuss UAV's impact on public safety. (Bailey Schulz/Las Vegas Review-Journal)
Frontier Airlines to launch flights from Las Vegas to Mexico
Frontier, a Denver-based ultra-low-cost carrier, will become the first airline in more than a decade to offer international service to Canada and Mexico from Las Vegas when flights to Cancun and Los Cabos begin Dec. 15. (Rick Velotta/Las Vegas Review-Journal)
MGM Resorts International CEO Jim Murren addresses Oct. 1 lawsuits
MGM Resorts International Chairman and CEO Jim Murren addresses criticism his company has received for filing a lawsuit against the survivors of the Oct. 1 shooting. (K.M. Cannon/Las Vegas Review-Journal)
MGM Resorts International opens the doors on MGM Springfield
Massachusetts’ first hotel-casino opens in downtown Springfield. The $960 million MGM Springfield has 252 rooms and 125,000-square-feet of casino. (K.M. Cannon/Las Vegas Review-Journal)
MGM Resorts International prepares to open MGM Springfield
Las Vegas-based MGM Resorts International gave news media and invited guests a preview of the $960 million MGM Springfield casino in Massachusetts. The commonwealth's first resort casino will open Friday, Aug. 24. (K.M. Cannon/Las Vegas Review-Journal)
A Walk Through Circus Circus
It only takes a short walk through Circus Circus to realize it attracts a demographic like no other casino on the Strip: families with young children. (Todd Prince/Las Vegas Review-Journal)
Morphy Auctions, a vintage slot machines seller, wants gaming license
Vice president Don Grimmer talks about Morphy Auctions at the company's warehouse located at 4520 Arville Street in Las Vegas on Thursday, Aug. 16, 2018. (Rick Velotta/Las Vegas Review-Journal)
TOP NEWS
News Headlines
Add Event
Home Front Page Footer Listing
Circular
You May Like

You May Like