Banc of California Prepares to Sell Downtown Grand Las Vegas After Loan Default

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Banc of California has moved to convert the Downtown Grand hotel-casino in Las Vegas into a marketable asset after its ownership group defaulted on a construction loan.

Downtown las vegas casino defaults on loan
Key Takeaways:
  • Banc of California moves to sell Downtown Grand hotel-casino after defaulting on construction loan
  • Court-appointed receiver has begun confidential marketing with potential buyers
  • Property remains open, with regulatory bodies monitoring next steps in sale process

According to the Las Vegas Review-Journal, the Clark County District Court placed the property, which opened in 2013, and related entities into receivership in early January at the bank’s request.

Paul Huygens of Province LLC has since been appointed receiver to operate and ready the asset for sale. 

The lender alleges interest payments stopped in March 2025 and the $90 million construction loan went unpaid at maturity in August 2025. The ownership entities have struggled to meet obligations since at least July 2024.

Pre-Sale Marketing Ramps Up

The receiver reports having stabilized hotel and casino operations with interim funding from the lender and has begun confidential marketing. 

A 53-page information memorandum and more than 500 documents were posted to a data room. Sale materials were circulated to 162 potential buyers, with 25 parties signing nondisclosure agreements and 17 engaging directly, filings show. 

Huygens is expected to ask the court to approve formal bidding procedures and a sales timetable under Nevada’s Uniform Commercial Real Estate Receivership Act. This was a statute that permits sales free of subordinate liens to facilitate clear-title transactions.

NGCB Aware of Situation

The Downtown Grand remains open while the receivership continues. 

A Nevada Gaming Control Board spokesperson said that the board is aware of the situation at Downtown Grand, while declining further comment. 

The next court filing is expected to set bid rules, timeline and whether a stalking-horse bidder will be named. No closing date has been disclosed.