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.I personally don't gamble but enjoy visiting the Vegas Strip because it is such a surreally designed place. The juxtapositioning of Paris, Italy, Monte Carlo, and King Arthur's castle (among others) jars the senses so much that its briefly entertaining (plus, the place has great shows like Le Reve and even better restaurants).
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.
All that said, the time is ticking on Vegas since, as much as almost anywhere, its success is tied to the availability of cheap airfare--something that Peak Energy is going to mercilessly dispose of for most Americans of modest means.