Am I missing something? Do Auction Companies need to disclose? Fresh off the press is this release about a Lake Las Vegas Property Auction - READ ON.
Not a mention of the fact that the masterplan in bankruptcy and there is chatter that they lake may be drained and therefore remain a hole in the ground...the following is excerpted from Bloomberg.com:
Lake Las Vegas Joint Venture LLC, the developers behind Lake Las Vegas Resort, which filed for bankruptcy in July, received court approval yesterday to enter into a $127 million financing arrangement while the bankruptcy is pending, the company said in a statement.
The debtor-in-possession, or DIP, financing, will be provided by a ``group of lenders led by Credit Suisse,'' Lake Las Vegas said in the statement. The deal has been consented to by ``various creditors'' and the official committee of unsecured creditors, Lake Las Vegas told U.S. Bankruptcy Judge Linda B. Riegle, according to the statement.
The company, which owns 3,592 acres of planned homes and resorts outside Nevada's largest city, filed for bankruptcy protection on July 17, blaming the credit crisis and the depressed real estate market.
Lake Las Vegas Joint Venture LLC said it had as much as $1 billion in debts and as much as $500 million in assets in court papers filed in U.S. Bankruptcy Court in Las Vegas.
Lake Las Vegas Has Temporary Authority to Use Cash
Lake at Las Vegas Joint Venture LLC, the master developer of the Lake Las Vegas Resort 17 miles from the Las Vegas Strip, received the court's authority to use $1.1 million in cash temporarily until an Aug. 4 hearing on the company's request for approval of $127 million in financing. The financing is to come from Credit Suisse Cayman Islands Branch as agent for lenders.
Information about the use of cash was contained in a statement the company issued yesterday, although it didn't appear early this morning on the court's records.
The developer filed for Chapter 11 protection last week in Las Vegas with affiliates, saying assets are more than $500 million and debt exceeds $1 billion. Secured debt includes $671 million in first mortgages on the property aside from the golf courses. There is another $134 million owing on the golf courses, according to an affidavit filed in the bankruptcy court.
The companies have $20 million in unsecured debt, including $15 million owing to trade suppliers.
The development is a 3,600-acre master-planned community with a 320-acre man-made lake next to the Lake Mead National Recreational Area. It has three golf courses, two hotels, a casino, retail stores and more than 1,600 completed residential units, the developer said.
Atalon Group from Las Vegas now controls the development after taking over in January following the previous owner's default last year on $540 million in debt.
Affiliate Village Hotel Investors LLC, the owner of the resort's Ritz-Carlton hotel, filed a Chapter 11 petition in April in Las Vegas to halt foreclosure of the $103 million mortgage held by German American Capital Corp., a subsidiary of Deutsche Bank AG.
The case is Lake at Las Vegas Joint Venture LLC, 08-17814, U.S. Bankruptcy Court, District of Nevada (Las Vegas). The prior filing by the affiliate is In re Village Hotel Investors LLC, 08- 13043, U.S. Bankruptcy Court, District of Nevada (Las Vegas).
I just wonder if these potential buyers will be made aware of the above so that what seems like a great price may not be so great given the state of affairs. This is not to say that buying a discounted property at LAKE LAS VEGAS, will not turn out to be a fabulous buy in years to come - but what looks like a deal may not be.
Reminds me of the folks who bought Turnberry Place foreclosure units at auction sight unseen based on the auctioneer's price per sq. ft. analysis, at what appeared to be fantastic prices, only to find out after they took possession that the views are totally blocked by the Fontainebleau gargare structure going up right outside their living room windows. Noise - dust - construction workers welding steel...what a view!
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looks liks a fantastic piece of property....
Hi Travis - It is amazing. Usually, when a location is inherently so good - the property comes up smelling like roses in the long term. We have the Cosmopolitan Resort on the strip in foreclosure - with the best location in Vegas. The outcome of that project will be interesting to see as well.
I thought Lake Las Vegas was going to have trouble last year when I visited the development. I believe that disclosure is different state to state however Lake at Las Vegas Joint Venture LLC is a Nevada entity...
June - When the Cosmopolitan Resort first broke ground I was working on the project on the night crew flying window panels and setting them on floors. What was so unbelievable there was a old building in the middle that the construction crew was building around this old building to contain it. It doesn't surprise me that this project failed.
Homework folks, ALL i can say is always do your homework auction or no auction.
The article on BLOOMBERG.COM talked about the $127 million spending approval, but it is the lack of disclosure on the part of the National Homebuilders out there and the auctioneers that I find problematic.