Right now there is a condo developer being sued because the project failed. The developer, Terry Bean of Oregon bought an apartment complex with the intent of converting it into condos three years ago. At the time, he paid $35 million for it which would be right around the time the market peaked. Two Portland investors, Frank Dulcich and Richard Akerman claim that Mr. Bean held back critical evidence about the project and the state of the Las Vegas real estate market in early 2006.

Among other things, the plaintiffs argue, Bean never disclosed to them that the apartment complex they bought in early 2006 for $35 million had sold barely a year earlier for about half that much. Had the investors been warned of the escalating price tag, they would have realized they were buying into a real estate bubble, said Michael Esler, the Portland attorney representing investors.

It seems to me that since they were seasoned investors, they would have looked at the title report and saw what the property they were investing in had sold for. Some due diligence on their part would have went a long way.

Bean is claiming that they are looking to cover their losses by accusing him of wrongdoing, despite making money with him on previous deals. He has filed a counterclaims stating they are to blame for failing to provide additional funding for the project. The trial is projected to last about three weeks.

***UPDATE

Last week a confidential settlement was reached.

Related:

• Condo Projects Battling it Out

Post from: Las Vegas Condos - Las Vegas Condominiums

Deutsche Bank, along with several other lenders were named in a lawsuit claiming that they violated financial obligations when they canceled an $800 million revolving credit facility needed to complete construction on the Fontainebleau resort.

Fontainebleau filed a suit last month, stating that they are not in default and accused the banks of trying to get out of their financial commitments (the loan was canceled on the grounds that the project had defaulted on unspecified loan requirements).

Deutsche Bank is also developing the Cosmopolitan resort on the strip after buying the property for a Billion dollars after it went into foreclosure. The amendment filed by the Fontainebleau alleges that Deutsche Bank is trying to minimize the competition with their project.

Meanwhile Irish based Harcourt Developments has filed a counter claim against Glen, Smith Glen Development, its principals and one of their spouses for fraud. Harcourt was an equity partner in the stalled Sullivan Square condo project. Harcourt is claiming that Glen, Smith Glen Development tried to induce them to fund construction of the project based on straw man condo sales.

Earlier this year, some of the original charges filed against Harcourt were dismissed. It seems that Sullivan Square will join the ranks of other Las Vegas dream projects.

Post from: Las Vegas Condos - Las Vegas Condominiums

There has been some confusion about the Sky Lofts and the Signature Condos at MGM. The Sky Lofts are located on the 29th floor of the MGM Grand Hotel on Las Vegas Boulevard. The Signature towers are located behind the MGM Grand and the condo-hotel units are available for sale.

Post from: Las Vegas Condos - Las Vegas Condominiums