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Oooops: Cosmopolitan Juiced, Defaults On Loan

By Chuckmonster on Thursday, 17th January 2008 3:20am
  » filed under Ooops?  comments: 0


The developers behind the postage stamp sized Cosmopolitan project - currently a ditch with an elevator shaft poking out of it, shoehorned between Bellagio, Jockey Club and the City Center graveyard - have defaulted on a $760M loan. Lender Deutsche Bank has 'filed a notice of foreclosure' on the property, which Cosmo head cheese whiz Ian Bruce Eichner said was 'no surprise'. Take it away Brucie:

This action by our lender comes as no surprise. 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. [We have had] multiple conversations with several groups of interested investors, which continue to be ongoing.

Mr. Eichner's semi-blase attitude about this is a little unsettling. Yes, the real estate market is in complete upheaval, and the economy is spiraling into the trash can. But... (and this is a big butt, like hella big butt) one might think that a guy who's a) in charge of a $3B project that b) MGMMirage would be more than happy to send to the same scrap heap that currently houses Stupak's Titanic and Ruffin's City By The Bay and Montreaux disasters would c) have done more than 'anticipate' a foreclosure instead of d) making a half-assed pitch for the Riviera in May 07.

Anyhoo, the ride of the Cosmo appears to be mirroring the spectacular rise and fiery crash of the Vegas condo / high rise blitz, and - unless someone arrives at Lake Eichner with a some bait and bail bucket - we might witness the first implosion of a semi-uncompleted casino resort in Las Vegas since... uh... El Countrylandcho got popped and dropped. I'm compelled to mentioned that a somewhat similar scenario halted construction of the Dunes Atlantic City in the 1980's, whose hollow shell laid dormant for ten years until someone finally tore it down. I'll have more on the Dunes story on CityBOOM in a few weeks.

Thanks to Hunter at TwoWayHardThree for dropping this on his blog and to Atltrainman for posting this on The Board. Still getting over a nasty touch of the flu here so the news posts have been sporadic and less than timely.



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