Fontainebleau Las Vegas Hotel Condo Might Find Difficult To Fund Loan

Fontainebleau Las VegasFontainebleau Las Vegas hotel condo might find it difficult to fund its retail loan.  Condo presales at Fontainebleau were expected to raise between $700 and $900 million before the mortgage crisis earlier this year.

Although, analyst have told investors the $2.9 billion real estate project on the Strip has funding for the proposed hotel opening in late 2009.

This week Moody’s Investors Service downgraded the stock to negative ratings nearly $2.5 billion of debt funding for the development.

The decline in demand for condo hotels and decreased gaming revenues in Las Vegas, Nevada make it much more difficult for the commercial real estate project to meets the financial obligations in 2009.

Proceeds from presales of the 1,018 luxury Fontainebleau condominiums hotel units will reduce their debt during the construction process.  Not meeting the projected sales totals will directly impact its leverage.

Lehman Bros. Holdings’ recent financial collapse has creating a funding shortage on the retail real estate of Fontainebleau, which similar to other projects, Echelon Las Vegas, would be detrimental to the development.

When finished, the luxury high rise condo hotel, will offer 353, square feet of construction space, 100,000 square foot casino, 3,889 condos and hotel rooms, and a performing arts theater. Source: Review Journal

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Fontainebleau Las Vegas hotel condo might find difficult to fund retail loan.

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