Aventura-based Turnberry Associates reportedly will hold onto the office component of a mixed-use development in Las Vegas called Town Square, most of which three lenders own and plan to sell.
The Las Vegas Review-Journal reported that New York-based TIAA and Chicago-based Fairbourne Properties have a contract to buy Town Square except for 120,000 square feet of office space that Turnberry controls.
Turnberry and Las Vegas-based Centra Properties built Town Square and opened the 1.2 billion-square-foot, mixed-use development in November 2007, just as a national economic recession was starting.
The Las Vegas Review-Journal also reported that the developers were hit with a loan default notice in mid-2010, and by early 2011, lenders had seized the collateral on the loan, which included most of Town Square, but not the office space, which Turnberry controls.
Property records show that the owners of Town Square include three lenders: Los Angeles-based Oaktree Capital Management, New York-based Centerbridge Partners, and Five Mile Capital Partners of Stamford, Connecticut.
Siblings Jeffrey Soffer and Jackie Soffer, who run Turnberry, sued Five Mile Capital Partners, claiming in a 2012 court case that Five Mile’s managing directors had schemed to “steal Town Square” and “oust the Soffers.”
Town Square is located on Las Vegas Boulevard South at Sunset Road, close to the Interstate 15-215 Beltway interchange. Tenants include retailers selling apparel, electronics, and jewelry, plus bars, restaurants, a Whole Foods Market and an 18-screen AMC Theater.
In a separate Las Vegas project, Turnberry failed to develop a Vegas version of the Fontainbleau hotel in Miami Beach.
In January 2015, a Miami bankruptcy judge approved a $27.5 million settlement in litigation against former officers and directors of the Fontainebleau Las Vegas, culminating years of legal wrangling related to the failed project, spearheaded by Jeffrey Soffer. The judge directed that Soffer himself pay $2.5 million of the settlement. [Las Vegas Review-Journal] – Mike Seemuth