Strada Secures $28M Loan to Finish Bankrupt Henderson project

A bankrupt affiliate of Strada Development Group has been tossed a $27.9 million lifeline to complete a stalled seven-story apartment building in downtown Henderson.

The affiliate of the locally based developer secured the loan to complete The Watermark, a 151-unit apartment, office and retail project at 215 South Water Street, in Townsite, the Las Vegas Review-Journal reported.

The lender was New York-based Acres Capital, which had sued the Strada affiliate, DTH 215 Venture, for defaulting on a $37.5 million construction loan.

With fresh cash in hand, the graffitied project is slated to be completed in May, according to Tom Wucherer, a partner with Strada Development.

Plans call for 151 apartments, 25,500 square feet of restaurants and 12,500 square feet of offices on 1.2 acres across from the America First Center ice rink.

The Watermark had placed its mark on Henderson’s once-sleepy Downtown corridor, which in recent years has had a flurry of new construction, restaurants and foot traffic.

“When you look at our project, it absolutely fits in with the future of Water Street,” Wucherer told the Review-Journal.

The $65 million project, which broke ground in 2021, ground to a halt in 2023 after becoming subject to construction lawsuits and bankruptcy proceedings.

Like other projects at the time, it faced supply-chain shortages and cost increases of more than 20 percent, according to Wucherer. At one point, The Watermark project had more than $14 million in liens.

Early last year, Gillett Construction sued the developers, alleging it was owed more than $11 million for its work. An affiliate of Acre Capital also sued, alleging the developers defaulted on their construction loan, and sought the appointment of a receiver.

After Gillett filed a notice of foreclosure in May, the Watermark’s developers pushed the project into Chapter 11 bankruptcy, giving them protection from creditors, according to the Review-Journal.

Strada and its affiliate blamed the construction stoppage on a “series of issues and disputes” with the contractor, including delays in securing permits and disputed change orders, according to the bankruptcy filing.

In December, the developers filed court papers showing plans to obtain new financing from Acres, saying the funds would allow them to complete the white, gray and salmon building. Terms of the financing from Acre, which closed Feb. 14, were not disclosed.

Strada Development, founded in 2017, builds mixed-use, hospitality, food and beverage, casino and entertainment environments, according to its website. Past projects from its founders include the Bellagio, The Playboy Nightclub and TopGolf ranges.

— Dana Bartholomew