From the WSJ.com:
Las Vegas Default Highlights Commercial-Property Crunch
The credit crunch that roared through the residential real-estate market is starting to bite commercial projects, too.
Yesterday, Ian Bruce Eichner, the developer of a twin-tower casino resort in the heart of Las Vegas, defaulted on a $760 million loan from Deutsche Bank AG after he failed to get refinancing. The default on the loan supporting the $3 billion Cosmopolitan Resort Casino is a signal of trouble for Mr. Eichner, who gained notice during an earlier real-estate downturn in the early 1990s when he lost several projects in New York City.
8 comments:
I just hope this crap doesn't get so bad that they have to foreclose on the Internet and shut it down...then I'd really be mad.
LMFAO!!!!!
You have reached the end of the internet. Have a nice day ;)
what no comment about the "things are fine" McAllister Ranch article in the paper? sorry I'm gloating.
I noticed that. I ignore BS when I read it. When a company (Suncal) defaults on a loan to Lennar and then lets a project slow to a crawl (stop as you correctly point ed out WAY BEFORE anyone else)...I think they are just trying to save face.
I saw several hits from them on this blog...they must be really bored if they are coming here. :)
Also noticed hits from the Federal Reserve on here - what are you guys looking for? LMAO!!!
The evaporation of easy money to smaller, private developers is actually good news for the big corporate casinos. Not that they were that worried about condo-hotels to begin with.
Not sure if I agree - Vegas numbers were out for November and they are horrible:
Down almost 20% YOY on the strip
http://www.wedoitallvegas.com/Articles/articles/1341/1/Las-Vegas-gambling-revenues-drop-in-November-2007/Page1.html
Also, the stocks of Wynn and MGM are down 50% from their highs...
As a followup, this is a 3 billion dollar project next to the Bellagio. It broke ground in 2005 and is about 1/2 way done. The day after the notice of default was filed on the $760 million loan Deutsche Bank and the general contractor (Perini) entered into an agreement to continue uninterupted construction on the project. There is a lot of speculation that MGM Grand will wind up buying it since it sits between the Bellagio and their massive City Center project.
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