Cosmopolitan Las Vegas Luxury Condos On The Strip Begin Foreclosure

Cosmopolitan Las VegasCosmopolitan 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 luxury high rise is adjacent to the massive MGM Mirage Projecty CityCenter resort on the Strip.

Another potential construction delay or complete scrapping of a $6 billion development could be The Plaza at the previous site of the New Frontier across from Wynn Las Vegas, Nevada.

Some say the foreclosure is somewhat a change in direction after the project announced a deal approximately three weeks ago, but the developer was unable to land the project saving deal.

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.

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Cosmopolitan Las Vegas luxury condos on the Strip begin foreclosure proceedings.

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