A court-appointed receiver overseeing the Downtown Grand hotel-casino has selected a buyer for the downtown Las Vegas property and is asking a Clark County District Court judge to approve the sale.
Receiver Paul Huygens, of Henderson-based Province LLC, filed a motion Tuesday seeking authority to sell substantially all of the Downtown Grand’s assets to Vegas Ventures LLC, a Massachusetts limited liability company, according to court records.
The proposed deal comes after a monthslong competitive sale process that generated nine letters of intent and follows the default of a construction loan that court filings now say has more than $105 million due and owing.
Vegas Ventures signed an asset purchase agreement with the receiver on Thursday, Aug. 13, and deposited $2.7 million into escrow that day. The deposit will be credited toward the purchase price at closing. The purchase price was not immediately clear from the court documents reviewed by the Las Vegas Review-Journal.
The parties intend to close the transaction as soon as practicable and no later than Sept. 30, according to the filing. The sale remains subject to court approval and certain Nevada gaming regulatory requirements. Banc of California, which holds the senior lien on the sale assets, has consented to the transaction.
Hotel shakeup possible
The proposed transaction would also preserve a key part of the Downtown Grand’s current gaming structure.
Vegas Ventures intends to assume the existing lease with Fifth Street Gaming LLC, which operates the casino, while selecting a qualified third-party operator for the property’s nongaming operations, according to the receiver’s declaration.
That arrangement could lead to changes on the hotel and restaurant side of the property. The purchase agreement allows for the termination of existing management agreements involving CIM Group Hotel, Third Street Management Group, CIM Management and DTG Las Vegas Manager if Vegas Ventures elects not to assume them.
The sale follows an extensive marketing effort by Province.
According to a declaration from Province partner Daniel Moses, the firm prepared a 53-page confidential information memorandum and created a virtual data room containing more than 940 documents related to the property. Sale materials were sent to 167 prospective buyers, including strategic and financial investors, and 79 responded.
By July 28, 45 parties had signed confidentiality agreements and 43 had accessed the data room. Province also conducted about 23 property tours with 13 separate parties.
The receiver ultimately received nine letters of intent. Six included supplemental information addressing prospective buyers’ financial ability, operating qualifications, regulatory suitability and proposed deal terms. Participating bidders were also asked to provide verifiable proof of funds.
Longtime sale effort
The filings indicate the Downtown Grand had been marketed for sale before the receivership began. Moses said several previous sale efforts in recent years progressed to exclusive due diligence and negotiations with prospective buyers but ultimately failed to close.
Huygens determined Vegas Ventures submitted the best available offer after considering the proposed terms, contingencies and other factors affecting the value of the bids, according to court documents. The receiver also said no qualified bid exceeded Banc of California’s estimated secured claim.
The Downtown Grand has operated under receivership since early January, when the court granted Banc of California’s request to place the hotel-casino and related ownership entities under third-party control.
The ownership entities had secured $82.5 million in construction financing to help fund a new hotel tower, with the loan amount later increased by $7.5 million. Banc of California sued the ownership companies in December after alleging the borrowers stopped making required interest payments in March 2025 and failed to repay the loan when it matured Aug. 19, 2025.
Court filings this week say more than $105 million is now due and owing on the construction loan.
Banc of California holds the senior lien on the sale assets and has consented to the proposed sale. Under the transaction structure, claims and liens would generally attach to the sale proceeds rather than remain with the assets transferred to Vegas Ventures.
A hearing on the receiver’s request to approve the sale is proposed for Sept. 22, according to court filings.
This is a developing story. Check back for updates.
Contact David Danzis at ddanzis@reviewjournal.com or 702-383-0378. Follow @AC2Vegas_Danzis on X.
