|
|
 |
|
The Newsroom - 2008 |
 |
|
|
|
|
|
|
Vegas Casino Project Facing Foreclosure
$3 Billion Cosmopolitan Casino Project Faces Foreclosure in Vegas
January 16, 2008 - LAS VEGAS (AP) -- Nevada's foreclosure crisis claimed
a high-profile victim on Wednesday as investment bank Deutsche Bank filed a
notice of foreclosure on the $3 billion Cosmopolitan Resort & Casino project for
a construction loan of $760 million that just matured.
Developer and owner Ian Bruce Eichner said his company, 3700 Associates LLC, was
working with Deutsche Bank and Merrill Lynch to find new investors.
"This action by our lender comes as no surprise," Eichner said in a statement
sent to The Associated Press. "With the current challenges within the real
estate and debt capital markets, which are out of our control ... we both
anticipated and planned for this."
Eichner said his company is having talks with several groups of potential
investors.
A Deutsche Bank spokesman did not immediately return a message seeking comment.
The 2,998-room high-rise casino and hotel under construction is due to open in
late 2009 between the Bellagio casino resort and the CityCenter casino complex
on the Las Vegas Strip.
Many of the units were condo-hotel rooms, which allow buyers to rent out the
residences to hotel guests and split a fee with the resort management.
That led some observers to speculate that the project may have suffered from the
weakening condo market.
Some 20,000 planned condo units have been cancelled or suspended in the last
four years in the Las Vegas area, said Brian Gordon, a principal of Las
Vegas-based research firm Applied Analysis.
Sales of condo units and townhomes also plummeted in December, down 55 percent
from a year earlier to 167 units, according to the Greater Las Vegas Association
of Realtors. |
Go Up >>
|
|
|
|
|
|
Our
Services |
 |
|
|
Applied Analysis provides professional services in urban
economics, market analysis, financial advisory services,
information technology and hospitality/gaming consulting
services.
Read More >> |
|
|
|
|
|
Our
Information |
|
|
|
Reliable data is the foundation of any solid analysis.
We are the market leader in information and research. We
track economic, development and fiscal trends, and
publish the area's most comprehensive office, industrial
and retail market survey.
Read More >> |
|
|
|
|
|
Our
Clients |
|
|
|
Applied Analysis has a broad client base, including both
public entities and private companies. We exceed our
clients' expectations by taking the time to listen to
their goals and then committing the time, resources, and
know how to help them find success.
Read More >> |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
Yahoo Finance
|
|
|
"The state of the luxury condominium market is somewhat challenging," Gordon
said. "The question remains: Is this a project-specific issue or is it a market
issue?"
MGM Mirage Inc. said Tuesday that condo sales at its CityCenter project next
door were strong. It said it sold half of its 2,647 condominium units for $1.63
billion, with two years before its planned opening in late 2009.
Panorama Towers, a luxury offering just west of the Strip is also selling well,
said developer Laurence Hallier. The third Panorama tower is to open in
September, and $900 million in units have been sold so far.
"It's not the market that it was a year and a half ago, but I think for really
good product in the best location, I believe there's ample market," Hallier
said.
<< Go Back
Author: R. Nakashima, Yahoo Finance
|
|
|
|
|
|
 |
|
|
