$3 Billion Cosmopolitan Casino Project Faces Foreclosure In Vegas

Investment bank Deutsche Bank on Wednesday filed a notice of foreclosure on the $3 billion Cosmopolitan Resort & Casino project for a construction loan of $760 million that just matured, the developer confirmed.

Developer and owner Ian Bruce Eichner said his company, 3700 Associates LLC, was working with Deutsche Bank and Merrill Lynch to
find new investors.

"This action by our lender comes as no surprise," Eichner said in a statement sent to The Associated Press. "With the current challenges within the real estate and debt capital markets, which are out of our control ... we both anticipated and planned for this."

Eichner blamed challenges in the real estate and debt markets for difficulty in raising capital for the project, which is now under construction.

He said his company has had "multiple conversations with several groups of interested investors, which continue to be ongoing."

A Deutsche Bank spokesman did not immediately return a message seeking comment.

The 2,998-room high-rise casino and hotel is due to open in late 2009 between the Bellagio casino resort and the CityCenter casino complex on the Las Vegas Strip.

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