January 24, 2010
I wish I had the investment capital to take advantage, and bottom feed, in the United States!
Billionaire (with a capital “B”) Carl Icahn has made some major moves in Las Vegas*, where he purchased the failed project Fontainbleau** for 156+ million dollars.
Sound like a lot of money? Yes. But, compare that to the fact that investors have now sunk nearly $2 billion (yes, the “b” word AGAIN!) into the project, as the Vegas hotel market has slowed, investment monies diminished, and the saturation of the market.
Check out what NASDAQ has to say about the deal:
His winning bid of $156.5 million is a relative pittance, compared to the $2 billion the casino’s backers already sunk into its construction.
An investor seeking out some of the most depressed real estate in the nation would do well to turn to Las Vegas. According to Clear Capital, home prices in Las Vegas have dropped 63.7 percent since their peak. In 2009 – when many other large markets were beginning to show signs of life – property prices dropped 27.4 percent.
With such a low cost of entry, can Icahn enter the market with a competitive advantage to the surrounding hotels? Cheaper drinks. Cheaper rooms. Cheaper vacation! I am there!
Sounds genius to me! I guess that’s why he is a billionaire (the good B word), and I am a blogger (the not so good B word***)!
* I wish I was in Las Vegas right now.
*** blogger is actually a pretty cool “b” word… but, not nearly as cool as billionaire