When operation was starting connected a large task successful downtown Henderson successful 2021, then-Mayor Debra March lauded the influx of lodging it would bring.
As she described it, the metropolis was “seeing the dividends” of its efforts to revitalize the once-sleepy Water Street corridor.
Five years later, the mixed-use task known arsenic The Watermark is completed and unfastened for business. But aft a bid of ineligible and fiscal woes, including a bankruptcy case, the spot went into foreclosure.
Southern California landlord Next Wave Investors acquired The Watermark this spring, aft lenders cleared the mode for a foreclosure of the building, according to spot records, business-entity filings and tribunal records.
The Watermark’s archetypal developers obtained astir $28 cardinal successful further funding aboriginal past twelvemonth to decorativeness the once-stalled project, putting the task backmost connected track.
The Watermark Thursday, June 18, 2026, successful Henderson. (Madeline Carter/Las Vegas Review-Journal) @madelinepcarter
Since then, tribunal records show, they finished operation but weren’t capable to lease the commercialized abstraction successful the gathering “as rapidly arsenic antecedently anticipated,” and they couldn’t merchantability oregon refinance the spot to wage disconnected their lender.
Ultimately, the gathering went into foreclosure successful precocious April, with much than $41.5 cardinal successful unpaid indebtedness and different costs astatine the time, Clark County records show.
Tom Wucherer, founding spouse of Watermark developer Strada Development Group, did not respond to requests for comment.
Project lender Acres Capital did not respond to requests for remark either.
‘It’s a bully area, and it’s getting better’
Next Wave co-founder David Sloan said successful a telephone interrogation this period that The Watermark’s apartments are conscionable implicit 70 percent leased.
None of the commercialized abstraction has been rented yet, but galore prospective tenants person made inquiries, helium said.
Sloan said his radical liked the analyzable successful portion due to the fact that of the unsocial plan of the apartments, adding they person a modern concern consciousness with exposed concrete.
The Watermark Thursday, June 18, 2026, successful Henderson. (Madeline Carter/Las Vegas Review-Journal) @madelinepcarter
He besides cited the property’s location.
“It’s a bully area, and it’s getting better,” helium said.
The Watermark, 215 S. Water St., is crossed from the America First Center crystal rink. Overall, the seven-story complex has 151 apartments and much than 30,000 quadrate feet of commercialized space, comprising a premix of ground-floor retail and second-floor offices.
It boasts a rooftop excavation area, fittingness center, and lounge with billiards, its website shows. The gathering is besides adjacent bars, restaurants, java shops and different spots that present enactment downtown Henderson.
The Watermark was downtown Henderson’s biggest existent property improvement successful caller memory, arsenic measured by dollars, and was slated to beryllium the tallest gathering connected Water Street, Henderson’s then-redevelopment manager Anthony Molloy confirmed successful 2021.
The Watermark operation site, astir $50 cardinal mixed-use task straight crossed from the Lifeguard Arena crystal rink connected Water Street, is shown, connected Wednesday, Sep. 8, 2021, successful downtown Henderson. (Bizuayehu Tesfaye/Las Vegas Review-Journal) @bizutesfaye
At the time, Wucherer described it arsenic a astir $50 cardinal project.
The developers acquired the task tract from the metropolis of Henderson’s Redevelopment Agency successful 2020 and held a ceremonial groundbreaking successful outpouring 2021.
Then, successful summertime 2021, New York-based Acres Capital announced that it provided a $37.5 cardinal indebtedness to money operation of The Watermark, saying it was the “ideal time” to enactment up a mixed-use flat task that would conscionable the “significant request for rental units.”
Litigation
However, operation connected the Watermark stopped astir precocious 2023, Wucherer antecedently told the Las Vegas Review-Journal
Like different projects astatine the time, it faced outgo increases and supply-chain shortages, according to Wucherer, who said that its wide costs roseate by much than 20 percent.
Tom Wucherer, a co-founder of Strada Development, poses for a representation with the Watermark, a mixed-use flat task nether improvement connected Henderson’s Water Street, connected Thursday, Jan. 23, 2025. (Chase Stevens/Las Vegas Review-Journal) @csstevensphoto
The task besides faced litigation.
In aboriginal 2024, pb contractor Gillett Construction sued the developers, alleging it was owed much than $11 cardinal for its enactment connected the project, the Review-Journal antecedently reported.
According to the complaint, Gillett started moving connected the tract by summertime 2021, but the developers stopped making their payments to the contractor successful outpouring 2023.
Construction is underway for Watermark, a high-rise mixed-use task connected Water Street successful downtown Henderson, connected Tuesday, June 7, 2022. (Bizuayehu Tesfaye/Las Vegas Review-Journal) @btesfaye
Acres, done an affiliate, besides sued the developers successful outpouring 2024 successful Clark County District Court. It alleged the developers had defaulted connected their loan, and the lender sought the contiguous assignment of a receiver to instrumentality complaint of the property.
Eventually, successful June 2024, the developers pushed the task into Chapter 11 bankruptcy, giving them extortion from creditors.
Back connected track
The bankruptcy filing stated that operation had stalled due to the fact that of a “series of issues and disputes” with the contractor, including delays successful securing permits and disputed alteration orders.
In December 2024, the developers filed tribunal papers showing plans to get astir $27.9 cardinal successful caller financing from Acres, saying the further funds would fto them decorativeness the project.
The Watermark, a mixed-use task successful downtown Henderson, is seen, connected Wednesday, Feb. 19, 2025. (Bizuayehu Tesfaye/Las Vegas Review-Journal) @bizutesfaye
The developers closed escrow connected the indebtedness successful February 2025, tribunal records show.
That aforesaid month, Gillett provided a draught quality merchandise that said operation was “officially moving forward” astatine The Watermark aft the indispensable funds were secured.
“When you look astatine our project, it perfectly fits successful with the aboriginal of Water Street,” Wucherer said astatine the time.
Several months later, however, tribunal filings showed that issues were brewing again with the project.
‘Events of default’
Acres’ caller indebtedness provided funds to wage the contractor, decorativeness operation and wage operating expenses, tribunal records show.
But successful autumn 2025, the lender sent the developer a termination announcement of respective “events of default” nether the loan, according to a associated tribunal filing past December by some parties.
They agreed that the automatic enactment connected Acres had terminated and that the developer would afloat cooperate with Acres, including turning implicit possession of the spot to the lender oregon immoderate different purchaser astatine a foreclosure sale, the filing showed.
U.S. Bankruptcy Judge Natalie Cox signed an bid days aboriginal confirming their agreement
Then, successful precocious December, Gillett Construction filed tribunal papers claiming it was inactive owed astir $695,000. The contractor besides noted that it was not included successful the stipulation betwixt the lender and developer.
The Watermark Thursday, June 18, 2026, successful Henderson. (Madeline Carter/Las Vegas Review-Journal) @madelinepcarter
Gillett said successful the filing that it was contractually obligated to travel the approved drawings for the task and “meticulously adhered” to them and the owner-provided directives.
It besides said that immoderate “assertions of mediocre workmanship are fundamentally misplaced,” and that the delays and expenses stemming from “inadequate” drawings oregon plans are not its fault.
Unable to merchantability oregon refinance
This past January, a announcement of trustee’s merchantability was recorded with Clark County, showing a foreclosure auction had been scheduled for the property, records show.
The developers filed a question successful April to adjacent their bankruptcy case, saying they had completed operation of the project, hired leasing agents for the apartments and commercialized space, and started renting residential units to tenants.
However, locally and nationally, the system and commercialized existent property marketplace started declining, according to the developers, who besides alleged successful the tribunal filing that the spot “experienced immoderate harm and different problems from definite operation defects caused by Gillett oregon its subcontractors.”
Ultimately, the developers were “unable to lease retired the commercialized abstraction successful the Property arsenic rapidly arsenic antecedently anticipated,” and they were besides incapable to merchantability oregon refinance the task to wage backmost Acres, according to the filing.
Judge Cox signed an bid successful May closing the bankruptcy case, tribunal records show.
Gillett Construction did not respond to requests for comment.
‘More vibrant than it’s ever been’
Next Wave’s acquisition terms of The Watermark was unclear, fixed however the transaction was structured. Sloan, the co-founder, declined to remark connected the presumption of the deal.
Next Wave, based successful San Clemente, California, has a portfolio of 1,800-plus residential units passim the Western U.S., and the steadfast boasts much than $500 cardinal successful acquisitions, according to its website.
Sloan, whose radical has acquired different flat complexes successful the Las Vegas Valley implicit the years, said helium wasn’t alert of The Watermark until mid-2025.
Traffic streams by and on Water Street connected Friday, Jan. 9, 2026, successful Henderson. (L.E. Baskow/Las Vegas Review-Journal) @Left_Eye_Images
He said that downtown Henderson is simply a bully destination with restaurants and different attractions and that his radical is looking to bring successful bureau tenants and food-and-beverage outlets to The Watermark.
As helium enactment it, the Water Street corridor is becoming “much much vibrant than it’s ever been.”
Contact Eli Segall astatine esegall@reviewjournal.com oregon 702-383-0342.
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