Earlier this year CityCenter was facing a revolt from its contract buyers demanding price reductions on their units. A small group of buyers went so far as to obtain an attorney to try to get out of their contracts because the contract price was no longer fair. Now, since when is anything in life fair? I hardly doubt that these same buyers would have been happy had prices gone in the other direction and CityCenter then demanded they pay more money for the units they had already agreed to buy at a set price. Of course since the market has fallen steeply, the units are now dramatically overpriced.
MGM Mirage chief executive agreed stating “There’s no debate that the market has fallen dramatically in pricing since we initially priced these units.”
However, I absolutely agree with the contract buyers that they should had have their prices reduced to current market value, but because it makes good business sense on several levels. The foremost reason being there isn’t a bank in the country that will finance them at the prices they were originally purchased at. Another reason is because of who the buyers are. Several high end buyers frequent the MGM Mirage properties and are on their special clients list.
MGM Mirage came to the same conclusion earlier this month and has agreed to work with these buyers and the banks to get the units closed. The company has also stated that they are working with their customers and banks to get clients into their contracted units. It seems that MGM Mirage has finally seen the writing on the wall. The project is scheduled to open by the end of the year.
{ 1 trackback }
{ 0 comments… add one now }