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Condo Hotel Center: Property
Alert
February
9, 2005
Las
Vegas Strip Condo Hotel, Pre-construction Opportunity
THE COSMOPOLITAN RESORT & CASINO
 Hello.
Joel Greene here with a very exciting pre-construction
opportunity to tell you about. We've been tracking
this particular property for the past three months,
and just today we finally received the green light
from the developer to tell you about it.
It's a property that will redefine
the Las Vegas skyline with its stunning design. Best
of all, it is not yet on the market for the general
public. Condo Hotel Center has been granted a five-day
advance to begin pre-selling this property.
This is the earliest stage of pre-construction,
and prices are at their very first tier. On February
14, 2005 an official announcement will be sent out
to realtors, the media and the general public. But
remember, you heard it here first!
The $1.5 billion Cosmopolitan Resort
& Casino will consist of two 61-story glass towers.
Cosmopolitan in
Every Sense of the Word
Look up the word "cosmopolitan" in the dictionary
and it means sophisticated and internationally important.
I believe that's exactly what the developers had in
mind when they drew up the plans for a $1.5 billion
resort-style, condo hotel where owners can take an
elevator ride down from their residence to the casino,
retail shops, restaurants, theater, meeting rooms
and clubs.
Named The Cosmopolitan Resort &
Casino, it will be built on an 8.5-acre site right
on the Las Vegas Strip. It will have two 61-story
glass towers that consist of the following:
- Over 4 million square feet
- Approximately 2,200 rooms comprised
of condo hotel units and hotel rooms
- Over 150,000 square feet of convention
and meeting space
- A 70,000 square foot casino
- Over 300,000 square feet of retail,
restaurant, and entertainment space
- A 50,000 square foot fitness center
and spa
- 1,800 seat theater
- 400 feet of Strip frontage
- A four-level parking garage
The Cosmopolitan is intended to have
a four-star rating. It will have a fantastic location.
It will be built on Las Vegas Boulevard between the
Bellagio and MGM Mirage's recently announced Project
CityCenter.
Project CityCenter
Permit me to go off on a tangent and give you a little
background on the amazing CityCenter project since
it will most certainly contribute to The Cosmopolitan's
success, not to mention that of all of Las Vegas.
Last November MGM Mirage announced
it will develop a 66-acre site designated as Project
CityCenter. It will be a multi-billion dollar metropolis
in the very heart of the Strip. Located between Bellagio
and Monte Carlo, it will propel the urbanization of
the Las Vegas Valley and complement previously announced
plans for continuing downtown redevelopment. This
master-planned urban complex will represent the most
significantly privately funded project in the U.S.
at this time.
Project CityCenter will be a multi-billion
dollar, master-planned metropolis in the heart of
the Strip. The Cosmopolitan will be located between
the Bellagio and Project CityCenter.
MGM Mirage will partner with world-renowned
architects, residential developers, hotel operators
and retailers in designing, financing and operating
the project, which will be constructed in phases.
Design of the project will begin shortly
and is expected to take 18 months. Construction of
the first phase of the complex will take approximately
42 months with an opening anticipated in 2010.
The first phase of Project CityCenter
will include the development of 18-million square
feet of space consisting of:
- A 4,000-room hotel/casino
- Three 400-room boutique hotels
to be operated by world-famous hoteliers
- Approximately 550,000 sq. ft.
of retail, dining and entertainment venues
- 1,650 units of luxury condominiums,
condo hotels and private residence clubs
Remember, that's just Phase One! Further
phases are envisioned over time on contiguous company-owned
land.
More on Vegas
Every indication is that Las Vegas is heating up in
a big way. Let me throw a few additional facts at
you. Just two months ago the Las Vegas Convention
and Visitors Authority announced plans to spend nearly
$1.3 billion in advertising within the next five years
to attract a total of 43 million visitors to the city
annually by 2009, ensuring its place as one of the
world's top tourist destinations.
Also just announced was the decision
to expand and improve the already massive Las Vegas
Convention Center at a cost of $400 million. In 2004
the Convention Center hosted over 24,000 meetings
and conventions, proving that the demand is definitely
there.
Other developments under way include
the $2.6 billion Wynn Las Vegas hotel now under construction.
It will be 50 stories, rising 613 feet above Las Vegas
Boulevard, with 2,800 luxurious rooms and 200,000
sq. ft. of meeting space. It is scheduled to open
in April 2005.
Even The Donald has gotten in on the
Las Vegas act. He has in the works what will be the
tallest hotel on the Las Vegas Strip, the Trump International
Hotel and Tower. It will be a 1,282 room, 64-story
condo hotel located across from the Fashion Show Mall
on the 41-acre Frontier Hotel property.
Because units which went on sale last
December sold so quickly, Trump has just announced
plans to build a second condo hotel which will be
an exact twin of the first. It will also contain 1,282
rooms with a construction cost of $300 million.
Aside from the hotel developments,
the big news in 2004 was the launch of the Las Vegas
Monorail, a $650 million driverless urban transit
system running along the east side of the Strip and
transporting 30,000 riders per day.
The general consensus among experts
regarding Las Vegas is that the market is big, deep
and growing. Las Vegas clearly appeals to people from
all over the world. A condominium or condo hotel unit
gives them an opportunity to own a piece of this dynamic
city.
Meeting the Mixed-use
Challenge
Now that you have a picture of what's in store for
the Vegas Strip with regard to Project CityCenter
and some of the other major hotel and condo hotel
developments, let me get back to the details on the
Cosmopolitan.
The developer is a group called 3700
Associates. Ian Bruce Eichner, CEO of 3700 Associates,
will bring his trademark style of high-rise development
to the Strip. Eichner is one of the nation's premier
developers of luxury time share/condominium properties,
including The Manhattan Club in New York and the Continuum
development in Miami's South Beach district.
"The challenge was to find a
prime location at the center of the Strip where we
could create a mixed-use, urban high-rise property,"
Eichner said. "I wanted to merge the concept
of a luxury condo hotel with an equally luxurious
hotel, retail, gaming and meeting space development
as well as the existing Las Vegas business model that
is trending toward non-gaming attractions and facilities."
You Can Own
Property Right on the Strip
Eichner said the Cosmopolitan will offer investors
the ability to have it all…in the middle of it
all.
"The Cosmopolitan will be the
very first opportunity for a buyer to own property
right on the Strip. They will be able to take an elevator
from their condo hotel unit directly to the casino
floor. There's no other development on the Strip that
provides condo unit owners that type of 'one-button'
accessibility to the casino."
When complete, The Cosmopolitan will
infuse the Strip with a $1.5 billion development projected
to break ground in 2005 and open in late 2007 or early
2008.
"Many regard our site as one
of the last remaining prime locations anywhere on
the famed Las Vegas Strip," Eichner said. "And,
the new CityCenter project further accelerates visitor
counts to our city and creates a critical mass of
attractions to experience or, in the case of our condo
hotel, own."
Amazing Views
The panoramic views of the Strip will be unmatched.
You'll be able to peer out one window to see the Bellagio
fountains, Las Vegas' #1 tourist attraction, another
to see what will one day be MGM Mirage's CityCenter,
and then look across to the Eiffel Tower and Planet
Hollywood. Guests and condo hotel owners will be literally
surrounded by the icons that make Las Vegas exciting.
As Eichner said, "You'll be in the middle of
it all."
The Cosmopolitan will be a unique opportunity for
an individual buyer to own property on the
Las Vegas Strip.
Luxury Amenities
in a Super-sized Property
The condo hotel will feature luxurious appointments,
fine furnishings and state-of-the-art amenities such
as flat screen televisions. Guests will have VIP access
to the rooftop Beach Club, as well as fantastic restaurants
and nightclubs. Floor plans will include 600 sq. ft.
studios and 900 sq. ft. one-bedroom condo-hotel units.
A Big League
Team for This Big League Property
The developers have assembled what they're calling
a "dream team" of innovative designers with
international and local experience who collectively
can provide a new perspective on luxury and urban
architecture in the Las Vegas valley.
According to Eichner, "We envision
a project far beyond the traditional horizontal approach
to architecture. It will have a style and design that's
befitting the 22nd century."
Members of the "dream team"
include:
- Arquitectonica, one of the world's
top architectural firms whose projects include Hong
Kong's famous Le Meridien hotel
- Dougall Design, a theme retail
and interior design firm that worked on the Forum
Shops at Caesars and The Hotel at Mandalay Bay
- Friedmutter Group, a national
architectural firm specializing in hotel-casinos
whose portfolio includes MGM Grand and The Venetian
- Paul Duesing Partners, the custom
interior designer behind many celebrity residences
and exclusive hotels around the world
Construction Should
Start Soon
The Cosmopolitan is scheduled to break ground in 2005
and open in late 2007 or early 2008. "We anticipate
a very fast sellout of the condo-hotel units,"
Eichner said.
Eichner is probably right as we at
Condo Hotel Center have seen virtually every condo
hotel in Las Vegas sell out at lightning speed. The
MGM Grand sold all of its 576 units in just 90 days,
and the Trump International Hotel & Tower, Las
Vegas took reservations on 65% of its 1,000 units
in the first 48 hours.
An official announcement to other
realtors will be made on February 14, 2005. Roughly
two weeks later The Cosmopolitan will open its on-site
sales center. So if you are interested in this property,
now is the time to get in for the best selection of
units and the lowest prices.
Prices
Condo hotel units are available from the 14th through
the 61st floors. Prices go up by $2,500 per floor.
Studios are 600 square feet. They
have 100 foot balconies.
Cost $485,000 - $650,000.
One bedrooms are 900 square feet. They have 150 foot
balconies.
Cost $800,000 - $1,100,000.
Studio Combos are two studios combined
for a total of 1,200 square feet. They will have balconies,
square footage to be determined.
Cost $970,000 - $1,300,000.
Reserving a unit
To prevent speculators from tying up huge blocks of
units, the developers will only sell one unit per
person. Of course, buyers wanting more that one unit
may reserve a second unit in their spouse's name.
They will not accept any purchases that are in the
name of a corporation or LLC.
While this may not be good news for
you mega-investors, it is very good news for the investor
seeking to buy one unit as a vacation home on the
Vegas Strip. Without speculators causing a buying
frenzy, you will not get clobbered by the rapidly-increased
prices that that kind of activity can cause. Rather,
you will get in at rock bottom, first-tier, Day One
prices.
There is one more very special advantage
that you get when you buy your unit through Condo
Hotel Center. However, the developer made me promise
that I would not blast this point to everyone via
mass email. (I guess he knew exactly what I was going
to do.) If you're sincerely interested in this property,
just let me know, and I'll explain in a follow-up
email.
Deposit Required
The Cosmopolitan sales office will start accepting
reservations on February 14, 2005. Deposits required
are as follows:
- $10,000 deposit for a studio unit
- $20,000 deposit for a one bedroom
- $30,000 deposit for a studio combo
(two adjacent studios units with a connecting door)
This amount will need to be brought
up to a total of 10% of the purchase price by contract,
expected in the summer of 2005. An additional 10%
is due in July 2006 for a total of 20%.
Want More Information?
Obviously, we'd like to be able to send you a complete
brochure immediately, as we do with most of our properties.
However, I'm told that the marketing materials and
brochures will be available in a couple of weeks,
and "no more than a month."
I don't recommend waiting for them
if you are serious about getting your best selection
of units at the cheapest price.
True story: Last month, after tracking
The Trump International Hotel & Tower, Las Vegas
for months, I finally got the name of a sales contact
on a Thursday morning, the same day the units were
released. I called her three times before I got her
on the phone on Friday late afternoon.
She apologized and then explained,
"We are almost sold out!" I said, "WHAT!!!?
You just opened the sales center yesterday!
Sure enough, by Friday afternoon,
the 1,000-unit building was 65% sold out. Let me illustrate
the madness that is Las Vegas. A 300-room condo hotel
typically takes about one-and-a-half to two years
to sell out. Trump sold 650 rooms in about 48 hours!
Now granted, it's nice when you can
promote your new property in front of 40-million viewers
of "The Apprentice," but it really is the
market that is so hot, not just the Trump name.
So back to my point. If you are serious
about this property, please contact me immediately,
or you might as well start planning your future trips
to Las Vegas with a reservation at Circus Circus.
Request Cosmopolitan
Data Sheet
I've put together a data sheet on The Cosmopolitan
that will give you more details on the property. I
can e-mail it to you upon request:
WITH YOUR REQUEST YOU MUST INCLUDE
YOUR:
1. NAME
2. ADDRESS (no P.O. boxes please)
3. PHONE NUMBER
4. EMAIL ADDRESS
Click
here to request the data sheet.
Wrap-up
As always, thank you for your interest in news from
Condo Hotel Center. It's our pleasure to keep you
abreast of the condo hotel market, from coast to coast.
If you enjoy reading our Property
Alerts, please feel free to share them with friends.
They can sign up to receive our Alerts on our website,
www.CondoHotelCenter.com.
We are always trying to grow our "community"
of Condo Hotel Property Alert readers.
Have a great day!
Joel Greene, Broker-Associate
Condo Hotel Center
A division of Sheldon Greene & Assoc., Inc.
13499 Biscayne Blvd., Ste. 210
N. Miami, FL 33181
PH: 305-944-3090
FX: 305-948-0460
Info@CondoHotelCenter.com
www.CondoHotelCenter.com
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