Davis Polk advised Stockbridge Real Estate Funds in connection with a $300 million construction financing arranged by J.P. Morgan Securities LLC, as lead arranger, with Keycorp Real Estate Capital Markets, Inc., as administrative and disbursement agent, for the renovation and repositioning of the Sahara Hotel & Casino (to be renamed the SLS Hotel & Casino Las Vegas) by a joint venture between the Stockbridge Funds and an affiliate of SBE Entertainment Group, LLC.

The Sahara is a 1,700-room hotel and casino that opened in 1952 and is located on the north end of the Las Vegas Strip. The Stockbridge Funds/SBE venture acquired the hotel and casino in 2007.

Stockbridge Capital Group is the manager of the Stockbridge Real Estate Funds, a series of real estate opportunity funds capitalized by major public and private pension funds. SBE Entertainment, which is controlled by Sam Nazarian, operates hotels, restaurants and nightlife destinations in Los Angeles and Miami under the SLS and lifestyle brands and will operate the SLS Hotel & Casino Las Vegas upon its re-opening after the renovation is complete.

The Davis Polk corporate team included partners Thomas Patrick Dore Jr. and Joseph P. Hadley, counsel Susan D. Kennedy and associates Jeffrey Meriggi, Darren Mahone, Dessislav Dobrev and Kathryn C. Chiu (not yet admitted). Partner Rachel D. Kleinberg and associate Catherine Paskoff Chang provided tax advice. Counsel Hayden S. Baker and associate Kevin J. Klesh provided environmental advice. Bernadette M. Sullivan and Sonya Jackman were the legal assistants on the transaction. Members of the Davis Polk team are based in the New York and Menlo Park offices.

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