Cosmopolitan Buyers Get Big Refund, Will Other Vegas Condo Projects Follow Suit?
When it comes to Las Vegas real estate a lot of investors want their money back. Some of them, it seems, are getting it. The Las Vegas Sun reports that some buyers who invested in The Cosmopolitan project will be given deep refunds that amount to around 62 percent of their deposit money back, more than $120,000 per unit on average after attorney fees are paid. It's a hefty chunk of change but what really worries Vegas real estate watchers is that the deal could set a precedent that could be used by investors in other projects seeking their own redress. Many say they were led astray in the boom times of Las Vegas real estate a few years back only to find that their promised units aren't worth nearly what they paid.
Buyers continue to do battle with MGM Mirage over the Vdara and Veer projects in the CityCenter complex. The Sun article tells the story of one man who bought a $1 million condo unit at Vdara in 2006 and put down a nearly $200,000 deposit. MGM Mirage has offered some CityCenter buyers a deal to let them out of their contracts and return 25 percent of their deposit money. The angered buyer says that isn't good enough, the plans for the complex have changed since he bought in and he'd like all of his money back but would settle for a deal like the one that the Cosmopolitan buyers got. The Cosmopolitan is projected to be finished this December. Meanwhile Las Vegas real estate continues to flounder and the condo market is particularly vulnerable.