Reno Firecreek Casino Halted Due to Tough Financing Environment
Posted on: December 8, 2023, 06:11h.
Last updated on: December 8, 2023, 06:11h.
Elevation Entertainment is halting plans for the Firecreek Crossing Resort-Casino in Reno, citing a rough financing environment.
The news arrived about a year after the company announced plans for the venue. Firecreek Crossing Resort-Casino would have been the newest casino in Reno, following the debut of Legends Bay Casino in Sparks last year. Legends Bay is the first from-the-ground-up casino in Sparks in nearly three decades.
We love Reno, but given the challenging financial market, we are on hold for the time being. If and when the time is right, we would love to bring a first-class product to the market,” said Elevation in a statement to Fox 11.
The company has several commercial and residential real estate projects under its belt, including two California gaming venues. Elevation operates Seven Mile Casino in Chula Vista in the San Diego area and Stones Gambling Hall in the Sacramento region.
Firecreek Casino Plan Meets Macro Reality
Elevation didn’t reveal an estimated price for developing the Reno casino hotel, but Legends Bay cost $120 million to build and other properties in the market have traded for close to $200 million.
Point is Elevation needs financing to bring Firecreek Crossing Resort-Casino to life and with interest rates residing near the highest levels in two decades, this isn’t the opportune time for companies to borrow large amounts of capital. Additionally, Elevation is privately held, meaning public market equity sales aren’t possible and raising cash via debt markets is difficult.
Further compounding the developer’s woes is the point that defaults on commercial real estate loans are rising, prompting banks to be tight-fisted when it comes to extending credit for new, large-scale developments. That situation is amplified for smaller borrowers, such as Elevation, seeking financing for projects in markets banks view as vulnerable to economic contraction. Reno fits that bill.
Should it eventually come to life, Firecreek Casino will have 201 guestrooms, 48 suites, and a casino, Firecreek will feature a lobby bar, beer garden, multiple restaurants, and a food court, as well as a public park.
Checkered History for Firecreek Casino Site
Should the Firecreek Crossing Resort-Casino eventually open, it will be located at Kietzke Lane and South Virginia Street – a site that’s been home to previously failed gaming venue proposals.
Prior to the coronavirus pandemic, Station Casinos parent Red Rock Resorts eyed a development at a nearby location. That effort was stymied by the global health crisis.
Currently, the lot on which Elevation was looking to build Firecreek is vacant and acts as a Christmas tree sales venue in December with little else to speak of the remainder of the year.
Source: casino.org
