Vegas Development Headed for Foreclosure
Developer Ian Bruce Eichner’s Cosmopolitan Resort Casino located on the Las Vegas Strip got caught last year in the capital-markets crisis and is headed toward foreclosure, the Wall Street Journal reported yesterday. Deutsche Bank AG has sunk nearly $1 billion into the project, and two other lenders have provided $175 million. The willingness of lenders to give such developers more money helped fuel the commercial real estate boom that started in 2003 and reached its zenith in early 2007. Some of those lenders now face the potential for loan losses.

