Sunday, May 04, 2008

Snake Eyes

Meanwhile in Las Vegas, Toll Brothers, Lennar, and KB Home are all hating life due to their stakes in two massive and failing residential developments, Inspirada and Kyle Canyon Gateway. Inspirada is so bad off that, while it was planned for as many as 13,500 homes, it's sold 162 so far. The developers have defaulted on over 3/4 billion dollars of loans. So far.

And over on the commercial side, Deutsche Bank is foreclosing on the Cosmopolitan Resort Casino. Global Hyatt and Marathon Asset Management are negotiating to bail the property out in return for taking it over (They have little choice. They hold positions junior to DB and would be wiped out if the foreclosure went through.), and the project will probably be recapped, but all the players will take some serious hits.

Welcome to the wild, wild west. Yeehaw.

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