The Las Vegas Review Journal has released an article detailing the plight of some Cosmo buyers who are upset with the delay in the project's completion. Click here to read the news.
So much has changed in the state of the economy, in people's lives, during the time of the build-out. All deposits have not earned interest while in escrow. Buyers knew that going in. Now that some want out, I think it would be great if the new management team instituted an assignment program, so the luxury condo-hotel units at The Cosmopolitan Resort would be tranferred into stronger hands prior to completion. Would this be feasible in today's market? I think so. The Cosmo is a trophy property in a slam dunk location. And the prices that many of the 1800+ buyers paid, are attractive with the rising commodity and land costs.
As for financing these units, that is the challenge. Hopefully, by 2010, credit will have loosened up and condo-hotel financing will be available. Or perhaps the Related Group will line up preferred lenders for the project. Let's hope the high rise developer comes up with a good closing end game for one of the most spectacular new venues to grace the Las Vegas skyline.
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Everytime I come to Vegas I look up at all those new construction buildings and think about who is going to fill them. Here in New York we have seen new development construction explode in the last five years. Now that the market has turned, a lot of developers are in serious trouble. Getting financing for new construction is very difficult if a certain percentage of the building is not sold out yet. So what happens if nobody takes the plunge. A lot of these new developments are turning into rental buildings or hotels until the market shifts again and then these developers will sell them as condominiums.
Great information! I wish I would have had the chance to feature this article!