LAS VEGAS -- The Cosmopolitan, which sits half-built in the middle of the Strip, has been held up as a symbol of Las Vegas' doubtful future.In fact, the $3 billion property -- part of the resort corridor's largest construction boom, amid its worst economic slump in recent memory -- might better serve as a symbol of the Strip's long-term economic strength.While Cosmopolitan reps have kept quiet since the project's primary lender started foreclosure proceedings in January, plenty has gone on behind the scenes.The centrally located site offers a rare opportunity to buy Stripfront property, and experienced hotel operators, including Hilton and Hyatt, are lining up to acquire it.Evidently, some investors still think Las Vegas is a good long-term bet.Closing a deal, however, will be difficult.The usual hurdles have grown higher amid the economic downturn. Prospective buyers need to come up with several billion dollars during a credit crunch that has made capital cost-prohibitive. Owner Deutsche Bank, unwilling to see the costly and complex project that it bankrolled fall into the wrong hands, will be choosier than the typical seller.The difficulty in getting financing, the tourism slowdown and the challenge of reconfiguring an under-construction property to meet a new owner's needs will likely add up to a loss on the sale for Deutsche Bank, which is owed more than $900 million on the property.Just how much of a loss the bank will take is an open question. The bigger the discount, the more appealing the prize.The company declined to comment.The resort was the vision of an outsider who financed it when capital was cheap.Where others saw a 9-acre parcel that might have housed a parking garage or a strip mall, New York condo developer Ian Bruce Eichner saw enough space for a 7 million-square-foot resort featuring twin skyscrapers attached to a five-story base. Rather than buy out time-share owners at the neighboring Jockey Club, he erected his resort flush with their property and built parking spaces for the Jockey Club residents beneath Cosmopolitan.The towering design tested the limits of county planners, who weren't entirely comfortable with its density.The design also presents a challenge for potential buyers.The resort stands out on the Strip, where whimsical designs belie a time-tested method for separating customers from their money.Eichner viewed his design, with retail on the first few floors and the casino, restaurants and other amenities on floors high above the Strip, as an eye-catching innovation that would appeal to well-heeled city dwellers.Some casino operators, at least privately, panned the design. Gamblers should expend little effort to get to the casino floor, they said. Guests want to be greeted by the energy of gaming tables and whirring slots rather than the relatively sterile atmosphere of a mall, the insiders said.Others said Eichner was ahead of his time. CityCenter and even the new Palazzo have entrances that lead into malls, and space constraints will require future developers to be more creative with multistory attractions.Deutsche Bank took possession of the property after Eichner defaulted on the property's $760 million construction loan.The plans for Cosmopolitan's rooms -- which have the bold look of a rock star's pad -- are another hard pill to swallow. Hipsters will no doubt welcome the shag carpeting, mirrored walls, glass chandeliers and zebra-print furniture. But what will a conservative hotel company do with such baubles?Eichner planned to open the property by early 2010, but the foreclosure process might delay its debut.All this uncertainty is making a lot of people uncomfortable, including hundreds of condo buyers who plunked down nonrefundable deposits.Despite the challenges the project poses, would-be buyers are already at the table. The wheeling and dealing will continue to be quiet but intense. And it could go on for as long as the credit crunch continues.The winning bidder will gain a status purchase and a potential flagship property, and help continue to fuel the Strip's growth for decades.(Distributed by Scripps Howard News Service, www.scrippsnews.com.)
Concerned Cosmopolitan Investor
Dear Concerned Cosmopolitan Investor,
I am attorney and a partner in the law firm LURIE & PARK LLP, located in West Los Angeles, California. Our Firm specializes in real estate litigation and I have been noticing increasing complaints from investors regarding delays in construction at the Cosmopolitan Resort & Casino.
My firm is investigating and closely monitoring the situation at the Cosmopolitan. We are currently representing clients who are trying to get their deposits back from other luxury condominium projects (e.g. Trump Baja resort). Based on our Firm's legal research and experience, we believe there is a strong case that the developer is legally required to refund the deposits if they do not deliver the units on time, as promised. Many of these purchase agreements also have provisions for reimbursement of legal fees for the prevailing party.
We are forming a plaintiffs' group to share in the costs of an arbitration against those persons and companies we believe responsible for failing to complete construction as promised. The more buyers we represent, the more each buyer will save in legal costs (i.e., 5 clients = 20% of legal costs for each client).
If you are interested in joining the group, please contact me at dpark@lurieparklaw.com. Our Firm will arrange for a free conference call with all those who are interested to answer various questions you may have and to offer you an assessment of your individual legal rights.
I look forward to hearing from you.
Sincerely,
Daniel E. Park, Esq.
LURIE & PARK LLP
12121 Wilshire Boulevard, Suite 1325
Los Angeles, California 90025
Tel: (310) 207-9400
Fax: (310) 207-8666
Cell: (310) 207-5415
Dpark@lurieparklaw.com
www.lurieparklaw.com
Cosmo
My name is Dan Minella and I am a Real Estate Agent that has sold 7 of these units and purchased 2 my self. I have a large amount of Money invested and would like to join in on a Class action suit to either get our money back or to have the prices of the condos lowered. 702-860-0471.
Concerned Cosmopolitan Investor
Dear Concerned Cosmopolitan Investor,
I am attorney and a partner in the law firm LURIE & PARK LLP, located in West Los Angeles, California. Our Firm specializes in real estate litigation and I have been noticing increasing complaints from investors regarding delays in construction at the Cosmopolitan Resort & Casino.
My firm is investigating and closely monitoring the situation at the Cosmopolitan. We are currently representing clients who are trying to get their deposits back from other luxury condominium projects (e.g. Trump Baja resort). Based on our Firm's legal research and experience, we believe there is a strong case that the developer is legally required to refund the deposits if they do not deliver the units on time, as promised. Many of these purchase agreements also have provisions for reimbursement of legal fees for the prevailing party.
We are forming a plaintiffs' group to share in the costs of an arbitration against those persons and companies we believe responsible for failing to complete construction as promised. The more buyers we represent, the more each buyer will save in legal costs (i.e., 5 clients = 20% of legal costs for each client).
If you are interested in joining the group, please contact me at dpark@lurieparklaw.com. Our Firm will arrange for a free conference call with all those who are interested to answer various questions you may have and to offer you an assessment of your individual legal rights.
I look forward to hearing from you.
Sincerely,
Daniel E. Park, Esq.
LURIE & PARK LLP
12121 Wilshire Boulevard, Suite 1325
Los Angeles, California 90025
Tel: (310) 207-9400
Fax: (310) 207-8666
Cell: (310) 207-5415
Dpark@lurieparklaw.com
www.lurieparklaw.com
I'm in...I want my money back!!!
Hello everyone. I'm Barb. I also bought a unit, and would like to get out of it. Our money has been sitting there and not doing anything for us. I can be reached at 818-481-4453 to discuss options. Based on everything that has been happening, I would think that we would have the option to get out. It's not what we initially bought into, and who knows what it will turn into if someone else takes over the project. The Hilton? The W? The Hyatt? all of which affects our return on investment. I don't know about you, but I wouldn't have bought this if it were a Hilton resort. I asked my realtor about it a few months ago, and she said the money is safe at Nevada Title. However, it could sit there for years while this stupid thing continues to be built at a turtle's pace." Initially it was to be completed in 08. Now they are saying 2010! I call BS!
Concerned Cosmopolitan Investor
Dear Concerned Cosmopolitan Investor,
I am attorney and a partner in the law firm LURIE & PARK LLP, located in West Los Angeles, California. Our Firm specializes in real estate litigation and I have been noticing increasing complaints from investors regarding delays in construction at the Cosmopolitan Resort & Casino.
My firm is investigating and closely monitoring the situation at the Cosmopolitan. We are currently representing clients who are trying to get their deposits back from other luxury condominium projects (e.g. Trump Baja resort). Based on our Firm's legal research and experience, we believe there is a strong case that the developer is legally required to refund the deposits if they do not deliver the units on time, as promised. Many of these purchase agreements also have provisions for reimbursement of legal fees for the prevailing party.
We are forming a plaintiffs' group to share in the costs of an arbitration against those persons and companies we believe responsible for failing to complete construction as promised. The more buyers we represent, the more each buyer will save in legal costs (i.e., 5 clients = 20% of legal costs for each client).
If you are interested in joining the group, please contact me at dpark@lurieparklaw.com. Our Firm will arrange for a free conference call with all those who are interested to answer various questions you may have and to offer you an assessment of your individual legal rights.
I look forward to hearing from you.
Sincerely,
Daniel E. Park, Esq.
LURIE & PARK LLP
12121 Wilshire Boulevard, Suite 1325
Los Angeles, California 90025
Tel: (310) 207-9400
Fax: (310) 207-8666
Cell: (310) 207-5415
Dpark@lurieparklaw.com
www.lurieparklaw.com
My email
This is Barb again. My email address is bmayo24@yahoo.com if anyone wants to get in touch with me or call 818-481-4453
cosmopolitan condo
I am a san diego real estate broker too who invested. I would like to take part in any solution out of this mess...definitely want to get my deposit back asap.
Jamie
jamiehur@hotmail.com
Concerned Cosmopolitan Investor
Dear Concerned Cosmopolitan Investor,
I am attorney and a partner in the law firm LURIE & PARK LLP, located in West Los Angeles, California. Our Firm specializes in real estate litigation and I have been noticing increasing complaints from investors regarding delays in construction at the Cosmopolitan Resort & Casino.
My firm is investigating and closely monitoring the situation at the Cosmopolitan. We are currently representing clients who are trying to get their deposits back from other luxury condominium projects (e.g. Trump Baja resort). Based on our Firm's legal research and experience, we believe there is a strong case that the developer is legally required to refund the deposits if they do not deliver the units on time, as promised. Many of these purchase agreements also have provisions for reimbursement of legal fees for the prevailing party.
We are forming a plaintiffs' group to share in the costs of an arbitration against those persons and companies we believe responsible for failing to complete construction as promised. The more buyers we represent, the more each buyer will save in legal costs (i.e., 5 clients = 20% of legal costs for each client).
If you are interested in joining the group, please contact me at dpark@lurieparklaw.com. Our Firm will arrange for a free conference call with all those who are interested to answer various questions you may have and to offer you an assessment of your individual legal rights.
I look forward to hearing from you.
Sincerely,
Daniel E. Park, Esq.
LURIE & PARK LLP
12121 Wilshire Boulevard, Suite 1325
Los Angeles, California 90025
Tel: (310) 207-9400
Fax: (310) 207-8666
Cell: (310) 207-5415
Dpark@lurieparklaw.com
www.lurieparklaw.com
class action
Hang on everyone. I am contacting attorneys who are handling a suit on a contingent fee basis to get the deposits in Trump Tower back. They are willing to do the same for us if we have enough people willing to join together. More info to come next week or soon. Keep your fingers crossed.
Condo buyer
I'm also a condo buyer.
The best way to handle this is to start a class action sout, just like you said, please let me know asap if any thing is happenenig.
Concerned Cosmopolitan Investor
Dear Concerned Cosmopolitan Investor,
I am attorney and a partner in the law firm LURIE & PARK LLP, located in West Los Angeles, California. Our Firm specializes in real estate litigation and I have been noticing increasing complaints from investors regarding delays in construction at the Cosmopolitan Resort & Casino.
My firm is investigating and closely monitoring the situation at the Cosmopolitan. We are currently representing clients who are trying to get their deposits back from other luxury condominium projects (e.g. Trump Baja resort). Based on our Firm's legal research and experience, we believe there is a strong case that the developer is legally required to refund the deposits if they do not deliver the units on time, as promised. Many of these purchase agreements also have provisions for reimbursement of legal fees for the prevailing party.
We are forming a plaintiffs' group to share in the costs of an arbitration against those persons and companies we believe responsible for failing to complete construction as promised. The more buyers we represent, the more each buyer will save in legal costs (i.e., 5 clients = 20% of legal costs for each client).
If you are interested in joining the group, please contact me at dpark@lurieparklaw.com. Our Firm will arrange for a free conference call with all those who are interested to answer various questions you may have and to offer you an assessment of your individual legal rights.
I look forward to hearing from you.
Sincerely,
Daniel E. Park, Esq.
LURIE & PARK LLP
12121 Wilshire Boulevard, Suite 1325
Los Angeles, California 90025
Tel: (310) 207-9400
Fax: (310) 207-8666
Cell: (310) 207-5415
Dpark@lurieparklaw.com
www.lurieparklaw.com
I'm an owner too
Hello everyone,
I also purchased a unit in the cosmo in 2005. While I am troubled by what is going on, I am not convinced that this is still not a good investment. I am wondering if there are any other owners on this thread that ARE NOT interested in selling their units and are sticking it out until the end. As I read the contract, if they do not deliver the unit, I get my money back out of escrow -- they can't touch the escrow otherwise.
I actually think if the project is turned around the prices we paid are pretty fair. For the location, type of property, and the fact that it can generate hotel type income - it's a value compared to condo prices seen in other major cities, even with the downturn -- just my opinion.
However, I am also interested in following what is going on with the progress of the class action suit -- while I am still positive, this is becoming shaky and I could turn at some point.
I'll keep watching this page for updates.
I want my money back too! Count me In.
I agree with you all, this is ridiculous, they have our money since 2005, and I tried making some calls 2 months back, and even sent a letter to 3700 Associates, and they calmly replied they had not screwed up with the contract and "ALL" is well....
If it wasn't for the media/bad press - I wouldn't have even found out, this is BS!
If something works out, I am willing to be part of getting our money back.
srfntm@gmail.com
703-795-9887
Perini Lawsuits
Just google "Perini Lawsuit" and see the action.....
The Complaint charges that Perini and certain of its officers and directors violated federal securities laws by issuing materially false statements that failed to disclose: (i) the developer of Perini's Las Vegas, Nevada projects, including the Cosmopolitan Resort & Casino Project, was experiencing financial problems because it failed to secure financing for the entire project and was dependent upon raising the remainder of the financing from the expected sale of residential units. However, the proceeds from the residential unit sales were based on unrealistic and aggressive prices at a time when the condo market in Las Vegas, Nevada was extremely weak; (ii) that the Company's Las Vegas projects were being delayed, and could possibly be halted; (iii) that the developer was at risk of defaulting on its construction loan; and (iv) that Perini's future revenue was dependent upon the Las Vegas projects.
Class Action
I'm a Realtor in Tucson, AZ who purchased one unit and sold two others. My clients and I have around $450 sitting in escrow and would like to take action. According to our contracts the seller has an obligation to respond within 30 days to any letters sent in from buyers claiming nonperformance. I think an arguement can also be made on our behalf that our inital contract was with the 3700 LLC group and not a potential suitor to be named.
FYI....I also closed on unit at Palms Place in May. Four months after our original closing date. Last month I talked with one of the top agents in Vegas who informed me that close to half of the units still haven't closed and that they have now offered 1/2 of their initial 20% deposit back. This is a 599 unit project that has so far been the best built and almost half of the buyers can't obtain finaning, what do think will happen when the thousands of units are ready to close for the Cosmo?
I could go on but it's hard enough to type with this iPhone. Feel free to contact me at SeanGetz@gmail.com or 520-891-3319.
Concerned Cosmopolitan Investor
Dear Concerned Cosmopolitan Investor,
I am attorney and a partner in the law firm LURIE & PARK LLP, located in West Los Angeles, California. Our Firm specializes in real estate litigation and I have been noticing increasing complaints from investors regarding delays in construction at the Cosmopolitan Resort & Casino.
My firm is investigating and closely monitoring the situation at the Cosmopolitan. We are currently representing clients who are trying to get their deposits back from other luxury condominium projects (e.g. Trump Baja resort). Based on our Firm's legal research and experience, we believe there is a strong case that the developer is legally required to refund the deposits if they do not deliver the units on time, as promised. Many of these purchase agreements also have provisions for reimbursement of legal fees for the prevailing party.
We are forming a plaintiffs' group to share in the costs of an arbitration against those persons and companies we believe responsible for failing to complete construction as promised. The more buyers we represent, the more each buyer will save in legal costs (i.e., 5 clients = 20% of legal costs for each client).
If you are interested in joining the group, please contact me at dpark@lurieparklaw.com. Our Firm will arrange for a free conference call with all those who are interested to answer various questions you may have and to offer you an assessment of your individual legal rights.
I look forward to hearing from you.
Sincerely,
Daniel E. Park, Esq.
LURIE & PARK LLP
12121 Wilshire Boulevard, Suite 1325
Los Angeles, California 90025
Tel: (310) 207-9400
Fax: (310) 207-8666
Cell: (310) 207-5415
Dpark@lurieparklaw.com
www.lurieparklaw.com
Class Action Lawsuit
We are in the same boat. If there is a class action lawsuit, we would like to be contacted as well. We plunked down $150K and it's just sitting there with delayed opening dates. I looked at the contract last night and our contract specifically says that if there is a delayed in construction it is not grounds for terminating the contract. Neither is financing. At this rate and the economy, we definitely will have a hard time getting financing as well.
The only easy out I see is if Hearst won the "cosmopolitan name" against 3700 group at this point. I hope there is more "outs" since we all need it.
Phan
phansmail@gmail.com
Condo
I'm all for class action lawsuit, please lets make this group as big as possible ang start the work.
Cosmo Refund
I have 2 units at the Cosmo and would love to get my deposits back. I would be intested in joining any class action lawsuit as well. Does your contract have a delivery date on it? The delivery date on my contract was left blank. I was told it would take 3 years to build by my broker and sales reps. I would not have invested in this project if I knew it was going to take 5 years to build.
I also have a unit at the Trump with 40% down and I cannot secure a loan. Only a few lenders are out there and their rates are pushing 12%. Trump has 1282 units, but only around 200 units have closed. Most owners walked away and have joined a class action lawsuit.
I see the same problems happening to the Cosmo owners in 2010 as what's happening to the Trump owners today. People will have to walk away and try to recover 25% of their deposit. Lawsuits will be flying everywhere. I think Deutsche Bank wants us to walk and will play hard ball when it's time to close. We need to get out of this mess!
Phil: On our contract there
Phil:
On our contract there is an estimate delivery date. It's on the first page at the bottom and it says... Dec 31, 2010.
From reading my own contract (line item 9.5 Completion Date), if the sellers did not meet the delivery date deadline it is not grounds for terminating the contract. That's from reading my own contract.
I'm also wondering if everyone here has the same contract? or if they had different versions of the contract.
You think that we will only recover 25% of our deposit? Oh heck NO! That would be a nightmare!
Does anyone here know if Cosmopolitan Resort & Casino lost to Hearst regarding the trademark infringement lawsuit, and Cosmopolitan Resort & Casino had to change their name, would that be a grounds for termination of the contract with full refund (with regards to line item 17.2).
Line item 17.2 Seller's Default: In the even Seller shall fail to materially perform any of its obligations hereunder, Buyer shall give Seller written notice specifying such default and if Seller, within thirty (30) days subsequent to receipt of said notice, fails to take such action which would cure the default within a reasonable time after notice, and if Buyer has performed all of Buyer's obligations under this Agreement, Buyer may terminate this Agreement and request the return of Buyer's deposits, together with all interest earned thereon, by providing Seller with written notice of such termination, whereupon all parties hereto shall be released from their obligations hereunder.
I'm thinking yes if Cosmo lost to hearst and had to change their name. We wouldnt be buying what we contracted to buy (sales agreement), a "Cosmopolitan Resort & Casino" unit.
Also... Do you think that the condo's will appraise for the value we pay for it? I dont think it will and how would this affect the overall scope of everything? I guess it falls under financing and we would still have to fullfill our obligations as buyers even if it doesnt appraise. Can anyone brainstorm this with me? LOL...
I just read on Las Vegas Sun online, an affiliate of Deutsche Bank bought the resort out of foreclosure for about $1 billion. So we have a new building owner with new direction. They also hired new people for their team as well as keeping the old ones. The Hyatt was not part of the team and now it seems like their future at The Cosmopolitan maybe murky too after completion of the cosmo.
Cosmo refunds
please call me about this, a group of us are going after them now with a high profile attorney in Vegas. 702.218.6800
I am an owner at Cosmo and
I am an owner at Cosmo and agree with most of the feedback here. What we need is 1 place where existing owners can go to submit their contact information and request to get our money back. Maybe one of you who is talking with an attorney can ask them what's the best way to coordinate efforts.
One thought I had was to create a simple website where owners can register for the class action suit. In the interim, please send me an e-mail with your contact information if you would like to get your money back and I'll start compiling the owner list.
cosmovegasowner@yahoo.com
Please count me in
I too a owner of 1 unit at cosmo and want out of this mess. Our money sitting there not doing any good for us. With all the issue going on with cosmo project and we dont get one letter from them to let us know what is going on. If there is a class action law suit, please count me in.
my email qtommm@yahoo.com
Another Owner
Please add me to the list, I want my money back too!
cosmovegasowner@gmail.com
Letter to Cosmo unit owners
Looks like some of us are starting to get the letters? I still don't have mine so not sure of the entire contents.
Here is what I found at the following site....
http://www.skyscrapercity.com/showthread.php?p=24966966
--------------------------------------------
I just got my copy of the letters being sent out to Cosmo unit owners confirming the information in the Sun News. Additionally they state the project is 50% completed on the exterior with the topping off expected to be at the end of the year. Escrows are slated to begin closing (I assume on the main building) 2cd quarter of 2010.
There was no hint of the property going hotel only. They also confirm there will be some exciting news in the next few weeks. Sure sounds like this thing is going to be completed. Hopefully Related Cos. means a chance of having the W branding to go with it. I sure hope that is the case but who the heck knows
I want out of this mess ASAP
I have deposit on 2 units and I want to get out of this mess and get my deposit back, it seems is going to be a while before the delivery date if is going to be one!!!
law firm
Finally some good news for a change. I am also tired of waiting around for another 2 years before the project is built. Antoinette at the sales office told me on Friday that the completion is schedulesd for mid to end of 2010 but she didn't know when construction would begin again and didn't know when the sales office would be open. some time in the future she said. So the good news. I contacted the law firm that is handleing the Trump tower lawsuit (they have 500 people)and they agreed to look at our documents. They told me our situation sounded similar to the Trump Tower disaster so they are way ahead on the research with condo hotels. that could save us some time and money. I am going to mail them our documents the middle of next week. I think if we get enough people together maybe they will take us on a contigency like they did the Trump people. I already have about 45 people who are interested and it looks like there is about 15 people on this blog site who would like their deposits back. That takes us to 60 people so far.Since Antionette told me there are 2000 units sold it shouldn't take too long to put together a pretty sizable group. I am anxious to hear what the attorneys have to say and will report anything I hear. email me at lucke.13@live.com and let me know if you want to be put on the list.
deposit
sign me up, I am in for 4 and would like out.
Thanks
Rick
Yes, I would also like to be
Yes, I would also like to be added to the "Get Deposits Back" list.
Gregg @ YAQONA@aol.com
Yes, I would also like to be
Yes, I would also like to be added to the "Get Deposits Back" list.
Gregg @ YAQONA@aol.com
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