Real Estate Investments :Las Vegas Fountainbleau Hotel Project Bought By Icahn
Article Summary:
The project has been stuck after investors have lost nearly 2 billion dollars as the Las Vegas hotel market has slowed, investment capital has
Article Content:
In what may be a brilliant bottom feeding move, Carl Icahn has bought the failed Las Vegas Fountainbleau project for 156 million dollars.
The project has been stuck after investors have lost nearly 2 billion dollars as the Las Vegas hotel market has slowed, investment capital has shrunk, and the over-saturation of the market has become more pronounced.
But, and a big but, Icahn now has such a low cost of entry that he can finish the project and still make money at a much cost basis. Meaning, rooms and drinks can be cheaper giving him an immediate competitive advantage the days the doors open. Not a bad place to be in a slow market.
His winning bid of 6.5 million is a relative pittance, compared to the billion the casino’s backers already sunk into its construction.
An investor seeking out some of the most depressed real estate in the nation would do well to turn to Las Vegas. According to Clear Capital, home prices in Las Vegas have dropped 63.7 percent since their peak. In 2009 – when many other large markets were beginning to show signs of life – property prices dropped 27.4 percent. via NASDAQ
Thanks for reading this post. If you would like to see more articles like this, please come visit The Real Estate Bloggers. where it was originally published.
Las Vegas Fountainbleau Hotel Project Bought By Icahn
Related posts:New York City Flat Iron Building Purchased For Future Hotel Project When I lived in Manhattan the Flatiron Building was right…
Atlanta’s Streets of Buckhead Another Stalled Project One of the outgrowths of the commercial real estate slowdown…
Las Vegas Woman Victim of Wrong House Trash Out When a home is sold in a foreclosure very often…
———————