The Cosmopolitan Resort and Casino being constructed for 3.6 billion dollars on the Las Vegas strip has been defaulted on by lender Deutche Bank AG over a 760 million dollar loan. The bank announced the default yesterday as the investor has been scambling for new investors. This is nothing new for the lead developer.
According to Bloomberg, the developer Ian Bruce Eichner has lost buildings to creditors before. Back in the 1990’s he lost 2 buildings in New York. Big real estate bets are nothing new for the developer.
Some of the mega projects that have been financed in hot markets back in 2004–2006 must be coming under tougher scrutiny these days. And with the turmoil in the banking industry I am sure there are many meetings wondering which loans to get off the books or to give them more time. According to reports, the Las Vegas Cosmopolitan project has great potential and will be completed. That is probably why Deutche Bank decided to press the issue and foreclose on the development. They will get their money either way on this deal.
The developer of the $3 billion Cosmopolitan Resort & Casino says its lender, Deutsche Bank, filed a notice of foreclosure on the property for a construction loan of $760 million that just matured.
Developer and owner Ian Bruce Eichner says in a statement that his company is working with Deutsche Bank and Merrill Lynch to find new investors.
Eichner tells The Associated Press in the statement that, “This action by our lender comes as no surprise.” via News3 Las Vegas