Deutsche Bank to Foreclose on $3.5 Billion Casino

[moh malekpour]

http://www.bloomberg.com/apps/news?pid=20601087&sid=alpUP8xoYnJE&refer=home

Deutsche Bank AG will foreclose on the $3.5 billion Cosmopolitan Resort & Casino in Las Vegas after developer Ian Bruce Eichner defaulted on a $760 million loan, two people briefed on the situation said.

Germany's biggest bank weighed selling the complex after Eichner's January default, said the people, who asked not to be named because the discussions are private. Deutsche Bank will take over the Cosmopolitan and is talking with companies including MGM Mirage and Hilton Hotels Corp. to help run its 80,000-square-foot casino, the people said.

Sagging commercial real estate prices, weighed down by record subprime defaults, forced banks to hold projects until prices rise or sell at a loss. The Frankfurt-based bank would oversee an 8.5-acre development with two high-rise towers, three wedding chapels, a sandy beach overlooking the Las Vegas Strip and a deck featuring ``European-style bathing.''

``Deutsche Bank wants to be engaged in banking, not running a casino,'' said Matthew Clark, a London-based analyst at Keefe, Bruyette & Woods. ``They've had to decide between selling the Cosmopolitan into a bad market or holding on for better times.''

Deutsche Bank spokesman Scott Helfman declined to comment, as did Yvette Monet, a spokeswoman for MGM Mirage, who cited company policy. Hilton's Robert Allegrini also couldn't comment.

Next one to go would possibly be Brothels

 

[George Hatch]

Two thoughts come to mind:

1. This is a non-residential property.

2. I wonder how many good SFR loans they had to write in order to cover this loss?

 

[Restrain]

They're not a residential lender.

 

[JRS at OBX]

I'll give them $100,000 for it. :icon_mrgreen:

 

[Pamela Crowley (Florida)]

They're not a residential lender.

Their wholesale division sure bought a whole lot of residential from MBs though. They are right up there in holding thousands of residential foreclosures in my area of Florida, and I'm hearing the same about them in all areas of high foreclosure rates. Unless they are backed by arab oil, they are in big trouble.

 

[Offshore]

Deutsche Bank to Foreclose on $3.5 Billion Casino

Will they allow Ocwen to place the BPO?

 

[OSU Beavers]

They bought a lot of crap loans. One in four REOs out here are Deutsche Bank.

 

[Dennis J. Black ASA IFAS]

Deutsche Bank was and is already running a casino, its called their lending department.

 

[George Hatch]

Deutsche Bank was and is already running a casino, its called their lending department.

Touche!

I tried to give you points for that one, but I haven't spread enough of them around yet to do it .

 

[Workbox]

Their wholesale division sure bought a whole lot of residential from MBs though. They are right up there in holding thousands of residential foreclosures in my area of Florida, and I'm hearing the same about them in all areas of high foreclosure rates. Unless they are backed by arab oil, they are in big trouble.

I come across them every so often here too.