The Real Deal New York

New-York based Blackstone to pay $1.7B for Vegas casino

Owner Deutsche Bank came up craps on Cosmopolitan, apparently losing billions in two years

May 16, 2014 12:57PM

4 People Viewed

blackstone-vegas

Stephen Schwarzman and Cosmopolitan of Las Vegas

Midtown East-based private-equity giant Blackstone Group struck a deal yesterday to buy the Cosmopolitan of Las Vegas hotel and casino for $1.7 billion.

Deutsche Bank, the seller, spent $4 billion on the resort as both a lender and owner. It has reported $9.5 billion in losses from noncore assets since 2012, according to the Wall Street Journal. And the 3,000-room property likely makes up a huge chunk of that deficit. The original developer, Ian Bruce Eichner, defaulted on about $760 million in loans in 2008. Deutsche took over and opened the site two years later.

Blackstone will likely borrow $1 billion toward the purchase. Earlier this month, the Stephen Schwarzman-led firm  renewed its lease and picked up an additional 38,846 square feet at 345 Park Avenue, as previously reported. [WSJ]Mark Maurer

2 Responses to “New-York based Blackstone to pay $1.7B for Vegas casino”

  1. May 16, 2014 at 5:36 pm, john albert said:

    Blackstone Group Tries A Hand At The Casino Industry http://bit.ly/RIYO40

  2. May 16, 2014 at 7:24 pm, SILKY SLIM said:

    You should know something about running a Vegas hotel/casino if you buy one.It’s a different animal. Deutschebank knows this…and Blackstone is about to find out.Hope they have a “local” running it…and a buyer in mind.

comment form

You must be logged in to post a comment.

MENU