DB Folds on Vegas Megaresort After Six Years

LAS VEGAS—Deutsche Bank, which has sold the Cosmopolitan to a Blackstone fund, became the 2,995-key resort casino's owner after original developer 3700 Associates LLC defaulted on loans in 2008.

By Paul Bubny | Updated on May 16, 2014

LAS VEGAS—Six years after issuing a default notice to 3700 Associates LLC, the developer of the $3-billion Cosmopolitan of Las Vegas, and then taking ownership of the unfinished project, Deutsche Bank is finally cutting its ties to the 2,995-key hotel and casino. The lender, which reportedly has sunk $4 billion into the Cosmopolitan, said Thursday it had agreed to sell it to a Blackstone Group fund for $1.73 billion in cash.

Deutsche Bank said Thursday that the sale of Nevada Property 1 LLC, which owns the Cosmopolitan, to Blackstone Real Estate Partners VII would have a five-basis-point positive impact on the bank’s tier 1 capital ratio. The Cosmopolitan is held within the bank’s non-core operations unit.

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