Tough credit markets hurt. This would not have been an issue less than one year ago. It has got a prime location next door to the Bellagio and CityCenter (which includes Veer, Harmon Hotel, Mandarin Oriental, and Vdara Hotel), and across the street from plante hollywood.
The developer of the Cosmopolitan Resort Casino, a $3.9 billion condo-hotel complex on the Las Vegas Strip, has been notified by its primary lender that it will begin foreclosure proceedings.
The move by Deutsche Bank AG, the lender on a $760 million senior loan, comes after the developer, Ian Bruce Eichner, wasn’t able to finalize a deal for new financing amid the credit crunch. Mr. Eichner in late February cut a tentative deal with two of his other lenders, Global Hyatt Corp. and New York hedge fund Marathon Asset Management, for a possible rescue of the twin-tower project. A default on the loan in January triggered automatic defaults on an additional $175 million in loans.
Courtesy of the WSJ.com
