Cosmopolitan Casino Faces Foreclosure
Three years ago, when we first wrote about the Cosmopolitan casino project in Las Vegas, 2008 seemed far away. But now, in the year the project was initially set to launch it is instead facing foreclosure. Investment bank Deutsche Bank has taken the initial steps toward foreclosure on the $3 billion project. The developer and owner Ian Bruce Eichner is still looking to find new investors but the construction loan from Deutsche Bank of $760 million has gone into default. The massive hotel and casino is still under construction with a planned launch for 2009. The project is located between the Bellagio casino resort and the CityCenter casino complex on the Las Vegas Strip. Many of the nearly 3,000 hotel rooms were to be condo-hotels and the company says that 84% of the 2,184 units available have sold. Around the Strip though, projects have been falling through all over the place. Fortune Magazine cites the data from research firm Applied Analysis which states that in the past four years around 20,000 condo units in the Las Vegas area have either been scrapped or are on hold.