Fontainbleau Listed for Sale
Article on Yahoo
edit: Sorry 'bout the spelling in the Title. I guess it is "Fontainebleau".
Quote: JohnnyQIf the asking price is $ 650 Mil, I wonder what they would take. If 325 of us each put in $ 1 mil.....
Article on Yahoo
edit: Sorry 'bout the spelling in the Title. I guess it is "Fontainebleau".
I will take 1/1000 of a share if anyone wants to go splitsies.
With the improving economy seller wants to see if anybody bites.
If I had the money, I would stay away.
I just don't think that area of the strip will ever generate the foot traffic needed to survive in Vegas
I wonder if converting 1/2 of it into upscale condos would make financial sense for a developer ?Quote: terapined
I just don't think that area of the strip will ever generate the foot traffic needed to survive in Vegas
Quote: Wizard650M sounds high to me. Lousy location and has a lot more work to be done to finish it.
Can they finish it?
I was under the impression that the whole thing has to come down
I heard it could of been finished a couple years after work stopped.
But now I think its deteriorated to the point it has to come down first.
Quote: terapinedCan they finish it?
I was under the impression that the whole thing has to come down
I heard it could of been finished a couple years after work stopped.
But now I think its deteriorated to the point it has to come down first.
How does concrete deteriorate ?
Quote: NokTangHow does concrete deteriorate ?
Come to Detroit and see the roads and you'll find out how.
When you look at the project from the north side, it looks horrible. There are many open, exposed areas where the weather should be deteriorating un-maintained building materials. As a matter of fact, I believe there was a recent ruling by the county where they have to cover up the open, exposed sections.
I would be surprised if there is any kind of offer in the range mentioned. I also would be surprised if that current structure doesn't come down one way or another.
Quote: IbeatyouracesCome to Detroit and see the roads and you'll find out how.
I doubt this Vegas property has the urine in public Detroit does with all it's dogs running around loose. I'd actually like a blue pelt pit bull from Detroit if you know anyone selling these?
Quote: JohnnyQIf the asking price is $ 650 Mil, I wonder what they would take. If 325 of us each put in $ 1 mil.....
Article on Yahoo
edit: Sorry 'bout the spelling in the Title. I guess it is "Fontainebleau".
from wiki:
In November 2015, Icahn listed the hotel for sale at an asking price of $650 million. The hotel is listed through the CBRE Group.[15] According to CBRE Group, "It will cost about $1.2 billion to finish Fontainebleau. Combined with a purchase price of $650 million, it would take less than $2 billion for a buyer to enter or expand on the Strip market. That's about $500,000 per room, just half of the $1 million or more per room to build new." CBRE Group expects great interest in the property.[16]
Icahn only paid $150M for it after Fontainebleau went into bankruptcy in 2009.
and Fontainebleau was forced into bankruptcy because Bank of America, the resort's largest lender, refused to provide financing on its committed line of credit.
WTF Bank of America?!
so this whole thing could have been avoided if BoA didn't renig on their line of credit???
Quote: JohnnyQ
and Fontainebleau was forced into bankruptcy because Bank of America, the resort's largest lender, refused to provide financing on its committed line of credit.
WTF Bank of America?!
so this whole thing could have been avoided if BoA didn't renig on their line of credit???
I think BoA had every right to pull their support and financing. Pure business decision. They are in the business of making sound investments (supposedly) and the investment changed.
When they initially supported this project, the Las Vegas market had been growing, well forever. As the project got under way, things collapsed in 2007. For the first time, Las Vegas casino revenues went backwards and in a very big way. There wasn't enough revenue coming in to support the current players as they all posted negative earnings. The last thing the market needed was to be expanded. So BoA pulled it's support. Smart decision.
If they had continued to support the project during failing times, well....in the AP world we call that "chasing losses" or "throwing good money after bad". Sometimes you need to cut your losses. That's what BoA did.
I don't know how all that works. But if they promised to loan them the money and so they started building on that promise then it's like welshing IMO.Quote: kewljI think BoA had every right to pull their support and financing. Pure business decision. They are in the business of making sound investments (supposedly) and the investment changed.
When they initially supported this project, the Las Vegas market had been growing, well forever. As the project got under way, things collapsed in 2007. For the first time, Las Vegas casino revenues went backwards and in a very big way. There wasn't enough revenue coming in to support the current players as they all posted negative earnings. The last thing the market needed was to be expanded. So BoA pulled it's support. Smart decision.
If they had continued to support the project during failing times, well....in the AP world we call that "chasing losses" or "throwing good money after bad". Sometimes you need to cut your losses. That's what BoA did.
Lets say a casino runs a promotion: hit 20 BJ's only available on on 6/5 and get a really nice bonus. Once You get 19 BJ's they say sorry we don't think it's a good investment for us anymore because you probably won't come back in the future, we canceled the promo. Sorry you lost your ass playing 6/5.
Quote: AxelWolfI don't know how all that works. But if they promised to loan them the money and so they started building on that promise then it's like welshing IMO.
I hear ya and understand your point. Obviously I am not a business type guy, nor did I sleep in a Holiday Inn Express last night, but I think the business world is a little different. There are formulas and conditions that make a project a good investment or not and when these conditions change and the project no longer looks like a winner, funding dries up.
Quote: AxelWolfI don't know how all that works. But if they promised to loan them the money and so they started building on that promise then it's like welshing IMO.
.
Duplicate, sorry
Quote: AxelWolfI don't know how all that works. But if they promised to loan them the money and so they started building on that promise then it's like welshing IMO.
.
On the flip side
They have to make absolutely sure they get paid back
If the economy is tanking, may not happen
Quote: terapinedOn the flip side
They have to make absolutely sure they get paid back
If the economy is tanking, may not happen
They have to make absolutely sure they get paid back?
No room for asteroid hits, alien invasions, or economic downturns?
Absolutely?
The gov't want even consider letting them fail?
I need me a really big bank....
Then investors sued the bank of America over Fountainebleau and won $300 million from the Bank.
Big money is everywhere, just not in my pocket.
Quote: boymimboLet's see: Fountainebleau sued the banks for cutting off the line of credit in 2009 which it lost in court. The Banks pulled the funding citing cost overruns, which it is entitled to do.
Then investors sued the bank of America over Fountainebleau and won $300 million from the Bank.
Big money is everywhere, just not in my pocket.
link?
makes no sense that the courts said it was ok for BoA to cut the line of credit.
then said the investors was right and BoA was wrong.
Quote: 100xOddsmakes no sense that the courts said it was ok for BoA to cut the line of credit.
then said the investors was right and BoA was wrong.
I don't know what the terms of the loan said but BoA received at least a 20B bailout around this time (source). The same courts trying to save BoA were probably eager to let it cut any financial commitment to fund Fountainebleau.
Billionaire Carl Icahn bought it in 2010 for around $150 million. After leaving it largely untouched, he sold it last August (2017) for $600 million to Witkoff and Miami real estate firm New Valley, a subsidiary of cigarette maker the Vector Group.
New York developer Steve Witkoff unveiled a plan and a new name for the unfinished Strip resort.
Witkoff’s namesake firm and hotel giant Marriott International on Monday announced the blue-tinted tower – mothballed since the recession – is now called The Drew Las Vegas and scheduled to open in late 2020.
Named after his son who died in a drug overdose.
um.. don't know how well the marketing strategy of naming the hotel after your dead son will fare???
Quote: 100xOddsum.. don't know how well the marketing strategy of naming the hotel after your dead son will fare???
Naming a university after his dead son didn't seem to hurt Leland Stanford - or the school - any.
Quote: ThatDonGuyNaming a university after his dead son didn't seem to hurt Leland Stanford - or the school - any.
I never heard of the leland school. Is that on Nevada somewhere?
Quote: GWAEI never heard of the leland school. Is that on Nevada somewhere?
The actual name of "Stanford" University is Leland Stanford, Jr. University, named for Leland Stanford's son.
The story of how he wanted to give money to Harvard, but when he and his wife went to see that school's president, the president took one look at how shabbily they were dressed and dismissed them - some versions say that he told them, "Do you know what it costs to build a university?", and when he told Stanford, he replied, "Is that all? I can do that on my own!" - is an urban legend. According to the legend, his son died while attending Harvard, but in real life, he died before being old enough for any university.
