Cosmopolitan Las Vegas condo hotel on The Strip begin foreclosure proceedings. Deutsch Bank notified the Cosmopolitan real estate developers a week ago that they will start bankruptcy due to the rising construction costs and volatile credit markets.
The previous deal would have been between Marathon Asset Management and Global Hyatt Corp. to recapitalize the luxury condo hotel.
Both real estate partners would take large equity stakes in the Cosmopolitan for cash. The deal fell through. Deutsche Bank didn’t receive the funding and wouldn’t wait on their $760 million mortgage loan.
The original construction costs in 2006 was $2 billion for the Cosmopolitan. Because of many delays the price has almost doubled.
The development was to be finished late in 2009.
The Plaza Las Vegas has also decided to wait on its development until the credit market becomes more favorable.
Cosmopolitan Las Vegas luxury condos on the Strip begin foreclosure proceedings.
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