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StumblePublished Friday, Jan. 18, 2008 | 11:42 a.m.
Updated Thursday, Oct. 30, 2008 | 2:14 p.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.
Can investors; i.e., those who put down deposits to buy a Condo Hotel unit get their deposits back right now?
I have a deposit down on a unit at the Cosmopolitan in Las Vegas. I don't trust the project any more with all the financial woes it's going through. I want my deposit back. If anyone else would like their deposit back, lets all get in touch with each other. My email is Dwn2earth4321@aol.com. Thank you.
I would be curious to what anyone has done to try to get their deposits back. I also purchased a unit in the cosmo. Please email me meetwithmark@hotmail.com I would love to know what your attorney has told you. Or call 847-477-6347