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The Honolulu Advertiser

Posted at 10:47 a.m., Tuesday, January 15, 2008

Condo sales at MGM Mirage's CityCenter top $1.6B

Associated Press

LAS VEGAS — Casino operator MGM Mirage Inc. said Tuesday that it sold 50 percent of its condo units for a total of $1.63 billion at its CityCenter casino complex in Las Vegas, a faster pace than expected ahead of the property's planned opening in late 2009.

Half of the 2,647 condominium units were sold by mid-January, 11 months after sales began, with two years left to sell the rest.

The company expects to sell $2.9 billion worth of condo units, offsetting the $7.8 billion cost of the 50-50 joint venture project with Dubai's government investment fund, Dubai World.

The pace of sales and the price, at an average $1,270 per square foot, confirmed high-end buyers are ignoring a larger decline in the housing market, said CityCenter executive vice president Tony Dennis.

"In tough times, the affluent don't go running for shelter," Dennis said. "What they do is look for quality and look for things that are familiar and they look for things that are secure. That's why I think we've been able to weather and outperform the market."

Condo prices ranged from $500,000 to $12 million under the brands Mandarin Oriental, Veer, Vdara and the Harmon.

MGM Mirage shares fell $3.49, or 5 percent, to $66.15 in afternoon trading Tuesday amid a broad market decline.

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On the Web:

MGM Mirage Inc., www.mgmmirage.com