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Got a few million bucks to spare? The Cosmopolitan resort and casino, a part condo, part hotel high-rise under construction at the northeast corner of Harmon Avenue and the Strip, is looking for a few good investors.
Cosmopolitan executives are working with Merrill Lynch to raise about $400 million in additional financing for the under-construction resort, which has
a total pricetag of at least $3 billion.
Seeking additional funds has nearly become a rite of passage on the Strip. Scaled-up plans and rising construction costs have led to significant cost
overruns.
The Cosmopolitan is more ambitious because it is 100 percent owned by Ian Bruce Eichner, a condo developer with a successful track record in New York
and Florida.
Cosmopolitan's CFO isn't panicking, though, in spite of last week's defection of the resort's chief operating officer, Audrey Oswell, to
competitor Fountainebleau Resorts.
"The markets obviously aren't good right now but there's a lot of capital out there," said Scott Butera, the former banker who helped reorganize
Donald Trump's casino company out of bankruptcy. "Private equity funds are looking for investments and we have a very good asset and a very strong
location. Construction is moving forward and we're somewhat ahead of schedule, actually."
The resort had locked in construction costs well before seeking additional equity, which was part of the master plan, Butera said.
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