Downtown Grand hotel-casino has been operating under a court-appointed receiver since early January, and the property is now being prepared for sale after its owners defaulted on a $90 million construction loan, according to Clark County District Court records.
A Jan. 5 order placed the property and its ownership entities into receivership at the request of Banc of California, the lender on the Downtown Grand loan. An amended appointment order was entered the next day.
The most recent filing, a stipulation and order entered March 5 and noticed on March 25, shows the receivership is well underway and that the receiver, Paul Huygens of Henderson-based Province LLC, has already begun a formal effort to sell the hotel-casino at the corner of North 3rd Street and Ogden Avenue in downtown Las Vegas.
According to court documents, the multiple ownership entities secured an $82.5 million loan in 2019 to fund the construction of a new hotel tower. The loan amount increased by $7.5 million in August 2020.
Banc of California, formerly Pacific Western Bank, sued the Downtown Grand’s ownership companies on Dec. 23, alleging the borrowers stopped making required interest payments on March 21, 2025, and failed to pay the loan in full when it matured on Aug. 19, 2025.
The bank also alleged the ownership group had been unable to pay its debts “as they come due” since at least July 2024 and that the entities were insolvent.
The court granted the bank’s request for a receiver on shortened time, finding the Downtown Grand and related LLCs constituted the collateral securing the loan and should be placed under third-party control.
In the March 5 filing, attorneys for the receiver, the lender and the defendants state that Huygens has taken “possession and control” of the property and has “largely stabilized operations” with additional funding provided by Banc of California.
The Review-Journal contacted Province, as well as attorneys on file for the various LLCs associated with the Downtown Grand’s ownership and Banc of California for comment.
The Nevada Gaming Control Board would not say whether the receiver requires any form of temporary licensing or regulatory approval to operate the casino. On Friday, a spokesperson for the agency said the board “is aware of the situation at Downtown Grand, and we are monitoring it closely,” and declined further comment.
According to the March 5 filing, the receiver has already begun an extensive pre-sale marketing effort. Huygens prepared a 53-page confidential information memorandum, uploaded more than 500 documents to an online data room and, on Jan. 31, circulated sale materials to 162 prospective buyers. By mid-February, 25 parties had signed nondisclosure agreements and accessed the data room, and 17 groups had participated in calls or meetings with the receiver’s team.
The filing notes that Huygens expects to bring a motion “in the coming weeks” asking the court to formally establish and approve a sales process.
The March 5 stipulation, which was signed by attorneys for the lender, the receiver and the ownership entities, authorizes the receiver to use Nevada’s Uniform Commercial Real Estate Receivership Act in connection with any sale. Under the act, a receiver can sell property free and clear of subordinate liens and redemption rights, a provision the filing says is intended to maximize value and streamline a future transaction.
The act also affirms the receiver’s authority to manage contracts, leases and vendor agreements while the property remains under court supervision.
The next step in the case will be a motion from the receiver outlining proposed bidding procedures and a formal sale timeline. Once filed, the motion is expected to detail how the property will be marketed, whether a stalking-horse bidder will be identified and what requirements potential buyers must meet.
The March 5 order also states that the amended receivership order entered on Jan. 6 remains in effect and that all deadlines and requirements from that order continue to apply.
It is unclear how long the Downtown Grand will remain under receivership or when a sale might close. Court documents indicate the property has continued operating and that the receiver has been working with existing staff and vendors while preparing the hotel-casino for market.
Contact David Danzis at ddanzis@reviewjournal.com or 702-383-0378. Follow @AC2Vegas_Danzis on X.