The developer of the $3 billion Cosmopolitan Resort & Casino says its lender, Deutsche Bank, filed a notice of foreclosure on the property for a construction loan of $760 million that just matured.
Developer and owner Ian Bruce Eichner says in a statement that his company is working with Deutsche Bank and Merrill Lynch to find new investors.
Eichner tells The Associated Press in the statement that, "This action by our lender comes as no surprise."
He blames challenges in the real estate and capital markets for difficulty in raising capital for the project, which is now under construction.
The 3,000-room high-rise casino and hotel is due to open in late 2009 between the Bellagio casino resort and the CityCenter casino complex on the Las Vegas Strip.
I've been watching them build this project during my last couple of trips to Sin City and it's a big, big deal. It's located right in the middle of the strip between the Monte Carlo and Bellagio in what used to be mostly a parking lot. I took a look in the sales office for the residential units the last time I was over there and it was going to take some big bucks to buy a condo in that development.
Chances are one of the big boys in town like Steve Wynn or the MGM folks will jump in and take the project over. It will eventually succeed like just about everything else in that town.
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