Las Vegas - Cosmopolitan Resort Casino Developer Defaults on $760M Loan

No one is certain how this will affect the project, but if he can't secure some more financing soon it could put a halt on construction. The article also mentions that condo owners at the Signiture are suing MGM/Mirage over lower than promised rental rates they are receiving on their condos.

http://online.wsj.com/article/SB120054012983095939.html?mod=googlenews_wsj


I wonder how this will affect other condo/hotel projects in Vegas?

Do you know the term "cross collateralized"?

Do you know the term "cross collateralized"?

yes...are you asking for a definition or saying that's what happened here?

Hopefully it doesn't impact the project; we need more competition on the Strip.

yes...are you asking for a definition or saying that's what happened here?

Not necessarily. If OP does not know this term, I won't have to speculate on an answer to his question.

Do you know the term "cross collateralized"?
Wikipedia is your friend:

http://en.wikipedia.org/wiki/Cross-collateralization

Word is that a deal has been struck to allow construction to continue while the search for new investors takes place.

What is the deal with the Cosmopolitan? Wedged in there between City Center, Bellagio, and the Jockey Club it just seems out of place. Why didn't MGM buy up that piece of property for City Center? Or, for that matter, how does the Jockey Club continue to exist?

Jockey Club is a time-share and has literally thousands of owners. Attempting to buy it out would be challenging, to say the least.

if it will be possible to rent the penthouses short term, i hope the cosmopolitan does get finished :D

the 2 north tower penthouses will have large terraces and pools.

"Honey, I'm going downstairs with the rest of the $760M. I'll be right back."