Cosmopolitan Las Vegas High Rise Condo Hotel Gets A Huge Financial Boost

Whew!... that was a close one. It's nice to be wrong every once in a while.

I had heard rumblings of a major announcement regarding the Cosmopolitan high rise condo hotel project. But what I thought would be bad news turned out to be a huge financial boost for the them instead. Developer Ian Bruce Eicher announced that his $2 billion dollar project received construction financing from Deutsche Bank in the amount of $415 million, which will allow Eicher to start building the project's underground elements, including a 3,900-space parking garage.

With approximately 1,600 of the project's 2,000 condos sold with pricing ranging from $400K to $1.7 million, the Cosmopolitan's sales volume has already reached over $1.2 billion. And with their "guaranteed maximum price" contract with the experienced Perini Building as their construction contractor, Cosmo can avoid the huge construction cost increases that have cancelled other high rise projects in town. In addition, the Grand Hyatt, which will manage the Cosmopolitan's rental program for unit owners, is also kicking in $50 million to the project's construction. With access to a customer base of well over 6 million, Grand Hyatt makes an excellent strategic partner for this project's overall success.

If a huge lender like Deutsche Bank is willing to commit that kind of money to a Las Vegas high rise condo project, what does that tell you about the overall Cosmopolitan development and the Las Vegas high rise condo market in general?

Exactly what we've been saying - you're still seeing a healthy market for projects with strong brands, great locations, and development teams with a track record of success. If Deutsche Bank supports this market, then it's good enough for me.

The Cosmopolitan's first phase, including 1,000 units, the retail space, casino and an 1,800-seat theater, should open around Sept. 1, 2008. The rest of the condominiums and hotel rooms should come on line by April 1, 2009.

You now have solid ground to stand on for purchasing a Cosmopolitan unit. Contact me and I'll tell you what's still available.