Las Vegas Weekly

May 29, 2008 · 12:01 AM

In related news, on-the-rocks Cosmopolitan focus of sale chatter

By Robin Leach

The Cosmopolitan, shown under construction in 2006, is said to become the W Hotel.

Photo: Sam Morris

In a strong vote of confidence about the future of condo-hotels on the Strip, it is believed the troubled Cosmopolitan project adjacent to MGM's City Center is to be sold to New York-headquartered Related Companies. I've been told by highly reliable sources that a chic W Hotel will replace the plans there for a Grand Hyatt Hotel-managed facility.

Miami and New York real estate developer Bruce Eichner apparently relinquished control of the building, which is now under construction, to Wall Street's Deutscher Bank when he was unable to secure an additional $400 million equity-loan investment.

Now Luxe Life has been informed exclusively that tycoon Steve Ross, who owns Time Warner Center and Related Companies, has apparently agreed to purchase the Cosmopolitan project -- and partner with the Los Angeles-based partnership that originally planned the initial W Hotel project for Harmon Avenue that also fell victim to the current poor economic climate.

Miami and New York real estate developer Bruce Eichner apparently relinquished control of the building, which is now under construction, to Wall Street's Deutscher Bank when he was unable to secure an additional $400 million equity-loan investment.

Now Luxe Life has been informed exclusively that tycoon Steve Ross, who owns Time Warner Center and Related Companies, has apparently agreed to purchase the Cosmopolitan project -- and partner with the Los Angeles-based partnership that originally planned the initial W Hotel project for Harmon Avenue that also fell victim to the current poor economic climate.

I'm told that Grimaldi's Pizza will be the only retailer kept from the original Cosmopolitan stores and restaurant lineup, and that old deals with all the other potential stores will be renogotiated or ended.

Construction on the hotel towers has continued since Deutscher took over by paying the builder directly -- and plans now call for the W Hotel to open there by fall of 2010.

The Related Company owned by Ross also owns an independent Related subsidiary, which partnered with Centra Properties of Las Vegas and investors George Clooney, Rande Gerber and Brad Pitt for the Las Ramblas resort casino complex on Harmon that also was canceled.

No financial details concerning the Related & Cosmopolitan transaction have been revealed yet.

In another surprising real estate development, I have also learned that Pure Management Group, the subject of an ongoing IRS investigation at its Pure (Caesars Palace) and LAX (Luxor) nightclubs, has purchased its first off-Strip property -- at the expensive, luxurious Queensridge development in Summerlin. Reliable sources have told me that PMG plans to put a 3,000-square-foot outdoor deck to good use as part of a new martini lounge bar and casual restaurant, similar to the new Blue Martini at Town Square.

Luxe Life will continue to monitor this developing stories.

Share This