The Blackstone group is once again looking to the sell their Cosmopolitan Las Vegas property. And all you need to add this resort to your portfolio is a meager $5 billion… maybe more.
It’s being reported that Apollo Global is exploring an offer. Another potential partner is MGM Resorts International. However, representatives for Blackstone, Apollo and MGM all declined to comment.
Blackstone, the New York-based investment firm, tried two years ago to find a buyer at $4 billion or more. Prices for Las Vegas casinos have continued to rise despite the pandemic as real estate investment trusts purchase properties and split costs with management firms.
Casino companies have been shedding real estate, often holding on to the management of the properties. Apollo is buying the Venetian resort complex in Las Vegas for $6.25 billion in a partnership with Vici Properties Inc., a REIT.
MGM has sold casino properties while continuing to manage them. It agreed in July to sell two Las Vegas hotels at CityCenter to Blackstone for $3.89 billion. The Cosmo sits between CityCenter and the Blackstone-owned Bellagio casino.
The Cosmopolitan Las Vegas, which opened in 2010, ran into financial trouble during its construction in the midst of the Great Recession. Owner Deutsche Bank AG, which built the property for $3.9 billion, sold it to Blackstone in 2014 for $1.73 billion.
