Cosmopolitan condominium and hotel project proceeding toward completion
Earlier this year the Strip project ran into serious problems when the principal developer defaulted on a construction loan. Acting on the obvious decline of the housing market in Las Vegas the lead lender, Deutsche Bank, asked the developer to put more capital into it but he couldn’t get anything because the credit market by then was already having its own difficulties. Since months-long efforts to sell the high-rise, twin-tower undertaking were also unsuccessful, Deutsche Bank did the next best thing and took over the project for $1 billion, actually a nice discount from the original cost of $3.9 billion.
The bank, though, isn’t in the business of owning condo developments and casinos, so it is likely to sell it when it’s completed in late 2009. Currently construction is humming along on the site backed by an agreement reached months ago with the primary builder, Perini Construction, which has managed to adhere to the initial end date.
Deutsche Bank could make a handsome profit out of this if the real estate market, and specifically the condominium sector, does rebound in Las Vegas by the end of next year or even in 2010. It could take longer than that, though. Even if the recovery at first were only gradual it could come out of the situation halfway okay since it did acquire the property for a deep discount.
Another bonus is possible in the shape of the CityCenter project by MGM Mirage going up right now next door. It also is scheduled to be finished late in 2009 and its luxury presence will certainly become a plus for Cosmopolitan. Who wouldn’t want to be only a few steps away from The City within a City? Still, CityCenter will to some degree be competition because it’ll also have a sizable condo component within its multiple towers. Finding the right price ranges for its units should, however, give Cosmo great odds of selling its entire inventory in a timely manner.
Cosmopolitan is one of the rare condominium projects in Southern Nevada that are moving forward despite the difficult challenges in the credit and mortgage markets. The going was tough over the past winter and this spring but somehow it weathered the adverse conditions and is now on a solid footing.
The bank, though, isn’t in the business of owning condo developments and casinos, so it is likely to sell it when it’s completed in late 2009. Currently construction is humming along on the site backed by an agreement reached months ago with the primary builder, Perini Construction, which has managed to adhere to the initial end date.
Deutsche Bank could make a handsome profit out of this if the real estate market, and specifically the condominium sector, does rebound in Las Vegas by the end of next year or even in 2010. It could take longer than that, though. Even if the recovery at first were only gradual it could come out of the situation halfway okay since it did acquire the property for a deep discount.
Another bonus is possible in the shape of the CityCenter project by MGM Mirage going up right now next door. It also is scheduled to be finished late in 2009 and its luxury presence will certainly become a plus for Cosmopolitan. Who wouldn’t want to be only a few steps away from The City within a City? Still, CityCenter will to some degree be competition because it’ll also have a sizable condo component within its multiple towers. Finding the right price ranges for its units should, however, give Cosmo great odds of selling its entire inventory in a timely manner.
Cosmopolitan is one of the rare condominium projects in Southern Nevada that are moving forward despite the difficult challenges in the credit and mortgage markets. The going was tough over the past winter and this spring but somehow it weathered the adverse conditions and is now on a solid footing.
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Right at the centre of the fantastic Las Vegas Strip rises the incredible new Cosmopolitan Resort and Casino. This spectacular new architectural marvel at the Cosmopolitan Las Vegas is a part of a 1.5 billion dollar development. This Las Vegas property will have breathtaking views of the Bellagio, The Eiffel Tower right down to the Mandalay Bay and Luxor Casinos. Check out The Cosmopolitan Condo Residences in La Vegas today to reserve your home. The Cosmopolitan Las Vegas tower real estate project is in the centre of the action, residents and guests can either relish in the excitement of the Las Vegas Strip or rise above the streets to secluded Luxury. This awesome location is truly the most sought after in Las Vegas, directly next door to the famed Bellagio Casino.
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