Hyatt, Marathon Come to Rescue of Las Vegas’ Cosmopolitan
- Feb 29, 2008
The $3 billion Cosmopolitan hotel-casino in Las Vegas has a new lease on life, thanks to an agreement from Global Hyatt Corp. and Marathon Asset Management L.L.C. to provide funding to the troubled project. CPN reported on Jan. 17 that Deutsche Bank had issued a notice of default on a construction loan reported to be for $760 million. The Cosmopolitan’s developer is Ian Bruce Eichner, operating as 3700 Associates. The Las Vegas Review-Journal reported yesterday that, according to Cosmopolitan COO Scott Butera, Global Hyatt and Marathon will recapitalize the project. The terms, which have not been disclosed, are being finalized with Deutsche Bank. Butera told the Review-Journal that since the notice of default, prospective lenders have made a higher equity stake, at least 10 percent, by 3700 Associates a precondition of new funding. The developer had originally contributed the 8.5-acre, valued at $90 million. The Cosmopolitan, on the Las Vegas Strip between the Bellagio and the CityCenter project, will include a pair of 52-story towers encompassing nearly 3,000 hotel rooms, hotel suites and condo units, along with an 80,000-square-foot casino, 265,00 square feet of restaurants and retail, 150,000 square feet of convention and conference space to be managed by Hyatt, a five-acre “playground” with beach, and, in true Las Vegas style, three wedding chapels. Ground was broken in October 2005, and construction has continued despite the project’s financial speed bumps. Perini Corp. president Robert Band was reported in the Review-Journal as saying that the project is on schedule for completion at the end of 2009. Founded in 1998, Marathon Asset Management is a global alternative investment and asset management company. It has $11 billion in capital under management and primary offices in New York, London and Singapore.