George Clooney's $3B Vegas Project Put on Hold

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George Clooney's $3B Vegas Project Put on Hold April 05, 2006 By Tonie Auer, Southwest Correspondent Rumors are flying that the $3 billion Las Ramblas luxury condominium, resort and casino complex project in Las Vegas is on hold as the city's condo market is slipping. Las Ramblas gained international notoriety for its backing by actor George Clooney, nightclub developer Rande Gerber, Related Las Vegas and Centra Properties. Word among the real estate community is that the project is on hold until it gets more financing up front. Las Ramblas is a different kind of project, said David Baird, national director of multi-family and senior vice president for Sperry Van Ness, who noted that most of the high-rise projects in Vegas are strictly condo. "There were many luxury condo projects announced, but no one ever believed all those would get built," Baid said. "We thought about 10 percent of them would get built and that is about what is happening. It isn't about selling them. Construction costs are up 30 percent and the banks are running a little bit scared. They want a lot more cash up front and more pre-sales. Most banks are asking for about 75 percent presale before funding and that makes it hard to pre-sell." Several towers have been constructed, but "unless you're a large developer with deep pockets and are able to put up 40 percent, you may not be able to do it," Baird said. "Most of the projects announced are on hold unless they get some more financing. I don't see (the Las Ramblas) project going forward ... In the last three or four days, we've seen three or four projects put on hold." Baird expects that it will take some time for the market to absorb enough product to justify more construction, but contends that as soon as construction costs settle down, there will be another resurgence. "There are projects on the strip still going on," he said, "but they overdid it with the high rises."