{"id":2507,"date":"2008-01-17T09:25:44","date_gmt":"2008-01-17T16:25:44","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=2507"},"modified":"2008-01-17T10:07:06","modified_gmt":"2008-01-17T17:07:06","slug":"what-do-you-do-about-a-3-dollar-foreclosure-you-can-take-it-in-stride-or-you-can-squish-it-like-a-bug","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2507\/what-do-you-do-about-a-3-dollar-foreclosure-you-can-take-it-in-stride-or-you-can-squish-it-like-a-bug\/","title":{"rendered":"What do you do about a $3 billion dollar foreclosure? You can take it in stride — or you can squish it like a bug"},"content":{"rendered":"

Foreclosure is normally not a topic for amusement, but the Las Vegas real estate scene is like a brand new Hasbro game show, Monopoly.TV.<\/p>\n

The news:<\/a><\/p>\n

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.<\/p>\n

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.<\/p>\n

Eichner tells The Associated Press in the statement that, “This action by our lender comes as no surprise.”<\/p>\n

He blames challenges in the real estate and capital markets for difficulty in raising capital for the project, which is now under construction.<\/p><\/blockquote>\n

<\/a><\/p>\n

The project:<\/a> The Cosmopolitan is being built to wrap around the old Jockey Club time-share on the strip. The owners were able to make the deal by revitalizing the Jockey Club towers and connecting them with a new parking garage. It’s an interesting plan, because the only artifact of humankind likely to outlast the cockroaches is fractional-ownership real estate.<\/p>\n

The prologue from the past:<\/a><\/p>\n

The Cosmopolitan isn’t the first local hotel-casino project to run into problems because of the current economic climate.<\/p>\n

“We have seen selected projects fail to move forward that had previously announced plans with the current credit crunch and the tightened lending requirements,” Las Vegas-based Applied Analysis principal Brian Gordon said. “Certainly, that has impacted many projects throughout the Las Vegas Valley, including resort and nonresort projects.”<\/p>\n

Tight credit markets have been cited as the reason for postponing planned resort developments at the Tropicana, the Silverton and Southern Highlands Resort.<\/p>\n

However, unlike the Cosmopolitan, which broke ground in October 2005, none of those projects had begun construction.<\/p>\n

The most famous example of a stalled Strip project was the Stratosphere, which was conceived by casino operator Bob Stupak in the early 1990s.<\/p>\n

Grand Casinos stepped in and finished the 1,149-foot tower hotel-casino project after Stupak ran into financial trouble that had stopped construction. Construction work was halted again in the mid-1990s, this time on a hotel room section, when the company went bankrupt. The development was eventually Read more<\/a><\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

Foreclosure is normally not a topic for amusement, but the Las Vegas real estate scene is like a brand new Hasbro game show, Monopoly.TV. The news: 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 […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[6,5],"tags":[],"class_list":{"0":"post-2507","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-marketing","7":"category-real-estate","9":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":4418,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4418\/fannie-and-freddie-fall-to-foreclosure-but-still-lenders-lend\/","url_meta":{"origin":2507,"position":0},"title":"Fannie and Freddie fall to foreclosure, but, still, lenders lend","author":"Greg Swann","date":"September 14, 2008","format":false,"excerpt":"This is my column for this week from the Arizona Republic (permanent link). \u00a0Fannie and Freddie fall to foreclosure, but, still, lenders lend I write this column at the beginning of the week, and it appears at the end of the week. My topics are usually timeless, but, if I\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":5199,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/5199\/foreclosure-homes-are-sold-as-is-but-most-need-only-minor-restoration-to-bring-them-back-to-fully-livable-condition\/","url_meta":{"origin":2507,"position":1},"title":"Foreclosure homes are sold “as-is” — but most need only minor restoration to bring them back to fully-livable condition","author":"Greg Swann","date":"October 25, 2008","format":false,"excerpt":"This is my column for this week from the Arizona Republic (permanent link). \u00a0Foreclosure homes are sold \"as-is\" -- but most need only minor restoration to bring them back to fully-livable condition If we were to have a contest for the Valley's most-gutted home, judging might take a while. A\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":5613,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/5613\/a-workout-loan-can-be-a-win-win-solution-to-avoiding-foreclosure\/","url_meta":{"origin":2507,"position":2},"title":"A workout loan can be a win-win solution to avoiding foreclosure","author":"Greg Swann","date":"November 15, 2008","format":false,"excerpt":"This is my column for this week from the Arizona Republic (permanent link). \u00a0A workout loan can be a win-win solution to avoiding foreclosure We talked last week about lender \"workout\" loans -- a scheme lenders have come up to keep homes from falling into foreclosure. The premise is simple:\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2723,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2723\/a-deficiency-judgement-in-arizona-not-likely\/","url_meta":{"origin":2507,"position":3},"title":"A Deficiency Judgement? In Arizona? Not Likely.","author":"Allen Butler","date":"March 8, 2008","format":false,"excerpt":"Hello again! Have\u00a0clients asking\u00a0you about short sales? I know I certainly do! In fact, it's become a big part of my business. In fact, I am conducting short sale negotiations for 3 different REALTORS, as well as 5 different clients. Unfortunately, a lot of questions have arisen lately about Arizona's\u2026","rel":"","context":"In "Ask the Broker"","block_context":{"text":"Ask the Broker","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/ask-the-broker\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":975,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/975\/bank-relationships-vs-mortgage-brokers\/","url_meta":{"origin":2507,"position":4},"title":"Bank Relationships vs. Mortgage Brokers","author":"Cooksquared","date":"January 31, 2007","format":false,"excerpt":"Every property I have ever purchased has been with the help of a mortgage broker. After my recent trip, I have started to wonder why this is the case. The obvious answer is simply their access to cheaper capital. Brokers can secure rates 50 to 100 basis points (.5%-1%) lower\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":13405,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/13405\/what-to-do-with-the-home-you-obtained-by-expropriation-what-we-want-to-do-is-to-take-the-foreclosure-off-the-credit-report-and-dissolve-it-completely-so-we-can-refinance-the-home-and-start-over\/","url_meta":{"origin":2507,"position":5},"title":"What to do with the home you obtained by expropriation? “What we want to do is to take the foreclosure off the credit report and dissolve it completely, so we can refinance the home and start over.”","author":"Greg Swann","date":"October 21, 2010","format":false,"excerpt":"Now that's cheek. May god have no mercy on the lender who underwrites the refi. From the Wall Street Journal: Niche Lawyers Spawned Housing Fracas.","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/2507","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=2507"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/2507\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=2507"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=2507"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=2507"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}