CityCenter Buyers Want A Break
Although Las Vegas condo prices have tumbled, MGM Mirage hasn't gotten the message. The Las Vegas Sun has a piece on the push to sell condos in CityCenter's Veer and Vdara towers. According to their report, buyers of CityCenter condos are looking for discounts but so far MGM Mirage hasn't budged. Some buyers signed purchase contracts more than two years ago when real estate was peaking. Now that the units are headed to completion and escrow buyers don't want pay more than they are worth in the current market.
MGM Mirage spokesman Alan Feldman has said the company is going to wait until the end of the year to make any decisions since it is too soon to say how the market could shift. Buyers have signed purchase contracts for CityCenter condos worth an average of $1 million per unit.
One disgruntled buyer Steve Mack, who bought a $3 million condo at the CityCenter Mandarin Oriental project, is calling for at least a 30 percent price reduction and says many buyers may decide to walk away from the deals, surrendering their deposits, if they are expected to pay full price. Some buyers are also finding that getting a bank loan for a luxurious second home is much more challenging than it would have been before the recession and so they may have no choice in the matter.
Feldman trotted out the party line that CityCenter is a premium project and therefore deserving of prices that are higher than those of other complexes in the area. It's not a bad argument, CityCenter does offer a wide range of amenities and even despite its recent financial woes is likely one of the more secure developments in Las Vegas. But there's a difference between premium and exorbitant and MGM Mirage may have to meet buyers halfway in order to close those deals.