Las Vegas Condos - Las Vegas Condominiums » citycenter

CityCenter Nearing Completion

admin — Thu, 26 Nov 2009 20:24:55 +0000

In the midst of the worse condo market ever, project CityCenter managed to beat the odds and continue to race towards completion. Over the past 18 months, several high profile condominium and loft projects joined the ranks of the dream projects. CityCenter is set to open next month and the final preparations are being made. The project is GREEN, earning an impressive six GOLD LEED certifications, the highest rating of any building(s) in the state of Nevada. CityCenter condo owners will be eligible for increased tax and energy savings as a result.

Because of the condo market softening, CityCenter was forced to lower its prices. Consequently, brand new condominiums are still available for sale. If you are looking for a condo on the strip, there has never been a better time to buy.

CityCenter Funding Resolved

The Saga of CityCenter Continues

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CityCenter cuts condo prices

admin — Fri, 07 Aug 2009 20:03:08 +0000

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.

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Early Buyers Cry Foul at CityCenter

admin — Fri, 10 Jul 2009 06:44:03 +0000

Recently a lot of local and national press have been focused on a small group of buyers at CityCenter. Some early condo buyers are demanding significant price reductions….despite signing a contract. Now, I’m not taking sides. I had agreed to buy a property, sight unseen, years before it would be completed and then as it neared completion the market had dropped significantly, I wouldn’t be happy either.

Somehow, I don’t think the same buyers would have thought it was fair if the market had shot up and CityCenter demanded more money. As almost everyone in the country has found out of the last few years, there is no guarantee in the real estate market that the value will always go up. Mark Connot, a partner with Hutchinson & Steffen whose firm is representing a few CityCenter buyers had this to say:

It is simply not possible by any stretch of the imagination to close on the units at the contracted price.

I’m not a lawyer, but when you sign a contract it is binding…unless there are special circumstances. MGM Mirage has stated that they are not going to reduce prices for buyer in contract at this time. However, legal and morals aside, Mark is absolutely correct. These units will need to be appraised if the buyers are not paying cash. Given the current state of the market, I think buyers will find a hard time finding the necessary financing to complete their contract. Plus most contracts include an out clause if the buyer can not secure financing. Whether the CityCenter contracts have that loophole, time will tell.

In the end, I think MGM Mirage will be forced by market conditions to make some kind of adjustments to get the units closed. Of course, this episode is just the latest of the troubles that have plagued the project. So given the market, do you think early buyers are entitled to massive price reduction?

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CityCenter Funding Resolved

admin — Thu, 30 Apr 2009 21:34:00 +0000

The drama surrounding project CityCenter has finally come to an end. For the past several months the future of CityCenter was up in the air due to financing issues. Their partner, Dubai World had gotten into a disagreement about the project and MGM Mirage was forced to cover the additional payments. Things came to a head when Dubai World filed suit against MGM Mirage over the project.

Now all those issues are just water under the bridge. According to sources late Wednesday night MGM Mirage and Dubai World reached an agreement. There is a new revised partnership agreement has resolved the issues between Dubai World and MGM Mirage. Dubai World will reimburse MGM Mirage for the equity payments it was forced to make to lenders on behalf of the partnership during the litigation. Dubai World and MGM Mirage will fund the remaining $800 million in equity contributions to CityCenter through letters of credit. The project is still on schedule to open in phases starting later this year. Roughly half of the high rise condos in CityCenter have been sold to date.

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MGM Still Scrambling to Save CityCenter

admin — Mon, 20 Apr 2009 19:20:46 +0000

It seem that project CityCenter has been plagued by problems. Several construction deaths and costly mistakes and now the problem with Dubai World not honoring its financial commitments could spell the end for the project….at least as far as MGM Mirage is concerned. However, according to Reuters, investor Carl Icahn and private equity fund Oaktree Capital Management have stepped up and acquired hundreds of millions of MGM Mirage bonds. The deal will be a restructuring swapping debt for equity, done in concert with MGM’s majority shareholder Kirk Kerkorian to provide the additional funds needed by MGM Mirage. The deal still has to be approved by the lenders, but MGM Mirage has a very strong relationship with them going back several years.

MGM Mirage will be cutting it close. Some of their financial covenants are due to expire on April 29 and May 15. Should those defaults come about, MGM Mirage would be forced to file for Ch. 11 bankruptcy protection.

If this deal doesn’t go through, MGM Mirage may sell off other assets like the Beau Rivage in Mississippi or the MGM GRand in Detroit. MGM executives are firmly committed to completing CityCenter which is scheduled to open in October of this year. When completed, it will be the biggest LEED project in the state.

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The Saga of CityCenter Continues

admin — Sun, 12 Apr 2009 04:02:50 +0000

With the downturn of the economy, MGM Mirage has been putting on a brave front regarding CityCenter. Months ago a “construction defect” caused them to scrap the Harmon condos…..sure it did. I’m sure there were some savings in construction costs that were purely incidental. Earlier they were in talks with Deutsche Bank about providing some additional financing for CityCenter.

Then there were rumors of talks with Australian gambling company Crown Ltd, who recently bought the Cannery on Boulder Highway. Earlier this week, investment discussions between Colony Capital LLC a real estate private equity firm and MGM were terminated.

Now MGM Mirage is having a dispute with their development partner, Dubai World. Dubai World had sued MGM Mirage over the CityCenter project. However, Dubai World has put forth a proposal that calls for Dubai World, MGM Mirage and bank lenders to commit to the $3 billion needed to finish CityCenter. WIth revenues down and difficulty obtaining credit, this may be CityCenter’s best bet.

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