Friday, Jan. 18, 2008 | 11:42 a.m.
Even as banks are tightening their loans, there's no shortage of investors willing to buy into Ian Bruce Eichner's foreclosure-threatened Cosmopolitan resort.
Trouble is, Eichner – who is building a hot concept in a hot part of the Strip during what's probably the worst possible timing for financing major resorts – doesn't want to surrender the percentage of equity investors want in return.
Eichner's got a few days before lender Deutsche Bank can begin foreclosure proceedings. There's a 90-day "cooling off" period after that, giving him more time to wangle a deal.
It was Deutsche Bank that forced Eichner to go out and raise more equity to finance the construction of the Cosmopolitan, which is now entirely controlled by Eichner.
Regardless of the outcome, the law allows buyers of condos – whose money is in escrow – to get their money back in the unlikely event that the project isn't finished. Someone will shepherd the project forward, so lenders shouldn't worry.
The guy who's really on the hook here is Eichner, an innovator who will have risked a lot more of his money on his first Strip project than many of today's established casino executives.
Join the Discussion:
Check this out for a full explanation of our conversion to the LiveFyre commenting system and instructions on how to sign up for an account.
Full comments policy