Hutchison & Steffen and Clients Say MGM Mirage CityCenter Not Recognizing Market Realities with Its Recent Price Reductions
01/04/2010
Hutchison & Steffen attorney Mark Connot reports that the MGM Mirage offer to reduce prices on its sold CityCenter condominium units by 30% does not reflect market realities and clients who have retained Hutchison & Steffen are unwilling to accept that offer. Moreover, the price reduction offered by MGM Mirage requires buyers to forgo substantial legal rights. Connot represents many of the original buyers, who signed agreements during the project’s early stages. Since that time, CityCenter has been confronted with numerous construction issues and real estate values in Las Vegas have fallen dramatically. Although the MGM Mirage offer indicates that the company is recognizing the devaluation issue, the real losses in value far exceed 30% and many buyers are refusing to accept this inadequate offer. Recently, MGM Mirage recognized the substantial decline in the value of CityCenter when it took a write down of just over $1 billion of its 50% interest in CityCenter.
“Given the realities of the market in general, and the issues with this project specifically, MGM’s offer to reduce prices by 30% is woefully inadequate,” stated Connot. “MGM has recently taken a write-down of well over 30% of the value of its interest in CityCenter, yet has only offered a 30% reduction to purchasers of condos in CityCenter. Our clients were disappointed by MGM Mirage’s initial offer and remain steadfast in their determination to reach a realistic resolution with MGM on an individual and collective basis.”
MGM Mirage CityCenter closings were scheduled to begin in late 2009 or early 2010. The project is the most ambitious in Las Vegas history, with an overall estimated value of $8.5 billion dollars and with 6,000 high-end hotel rooms and 2,400 luxury condominiums. Hutchison & Steffen represents buyers of both the residential and condo/hotel components of the CityCenter project.