This week Perini, the folks contracted to build CityCenter, wrote a letter to the Governor of Nevada asking him to step in and help them secure approximately $500 million that is owed to them by MGM Mirage (or MGM Resorts International, whatever). Embedded in the letter is a small point that the CityCenter condos are closing at an alarmingly slow rate. The letter cites the source below:
http://www.lvbusinesspress.com/articles/2010/04/12/opinion/columnists/stutz/iq_35200068.txt
Really? Only 25 condos out of 2,400 have closed since CityCenter opened? I understand that we are in a recession and Las Vegas is particularly bad off, but that rate is cause for concern. That means 1% of condos have closed when CityCenter should be at the height of interest. This makes me wonder if they will consider turning some of the Vdara or Mandarin Oriental condos into hotel rooms. Not that CityCenter needs the trouble of selling out additional rooms.
With the struggle to sell condos and hotel rooms, I think it will be a long time before we ever see the Harmon Hotel at CityCenter open, and I bet MGM is breathing a huge sigh of relief that they were able to cut the condos out of the Harmon. I wonder if Jim Murren ever wishes he could have a do-over on Harmon, Vdara, and Veer. I just don't see how they fit into today's economy.
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