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
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