Ian Bruce Eichner is joining the swelling ranks of former real estate moguls forced to hand over the keys to trophy properties. According to the Wall Street Journal, the developer was in negotiations with Deutsche Bank over the Cosmopolitan Resort Casino, a property in the midst of construction on the Las Vegas Strip. Deutsche Bank is on the hook for around $1 billion on the unfinished project as the property mogul defaulted on his loans late last year. Mr. Eichner claimed in an interview following the default that the credit crisis was the root of his problems and that banks would eventually lend to him again. "It's probably pretty safe to say that somewhere in 2009 or 2010, Bruce Eichner will surface with another one, something. There's zero that will stick to my shoes." I do enjoy it when over-levered egomaniacs blame their misfortune on the credit crisis, rather than their brilliant strategy of just borrowing money without any plan to pay it back.
Those who have followed the commercial real estate market for some time may be experiencing a bit of deja vu. Haven't I heard this guy's name somewhere before? Yes! Mr. Eichner was forced to hand over the keys to a series of buildings in Manhattan sixteen years ago. Yet somehow lenders thought he had developed some skill in managing his finances in the interim. On the other hand, according to The New York Times, in an article written in 1994, Mr. Eichner was quoted as saying "I've built three million square feet in Manhattan and none of it came in on budget or on time." Apparently, Deutsche Bank thought that this philosophy qualified him for a $1 billion loan. Now the bank is faced with yet another defaulted loan to work out, in addition to the $5.8 billion it lent to Harry Macklowe. At this rate, Deutsche may become a very large property manager in the US. Mr. Eichner can continue to believe that lenders will eventually come back begging him to take their money. If I ran the Fed, I would permanently ban any bank who lent this guy money again from accessing the discount window or any other loans provided by the Fed. Furthermore, if I ran Deutsche, I'd make him pay off his debts by washing my dishes for the next sixteen years. But since I only run MockTheMarket, the best I can do is call him and his lenders "idiots" and move on to the next inane story of the day.
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7 comments:
Your rant against my friend Bruce Eichner is absurd.
You have left out The Continuum he built and sold nicely! in Miami.
So what do you really know about anything???
Thanks, Neal H. Hurwitz, NY, NY
I appreciate the feedback. I don't know Mr. Eichner personally, and based my rant on reports in the Wall Street Journal and the New York Times, for which I provided links.
Although I fully believe that taking risk is part of what makes this country great, Mr. Eichner's comments, (which I took directly from news sources) are less than endearing. Most people who take risk and fail are remorseful; some are devastated. Mr. Eichner seems to voice no remorse over losing other people's money.
Writer.. three million Sq Ft in Manhattan - is just cause not to show remorse in a bad deal - had he continued with the program - in todays markets.. All parties walked away from that deal well kept.
Take a look at Atlantic City, Kevin Desanctis is running out of liquid on his casino project.
Sometimes you need to walk away - to be the winner.
Kindly
he is the biggest scumbag and crook on earth!!! he stole every tenants security dep at the cosmo and belongs next to madoff in jail!!
tenant
where does the cosmo stand today?
did the bamk foreclose?
I just sold a $1,100,000 apartment at the Continuum in Miami Beach and this scumbag didn't pay the commission. He belongs in jail along side Madoff
I frequently flew Eichner between Santa Monica and Las Vegas and it is fair to say he was the biggest asshole and most abusive owner we had. I was thrilled when the Cosmo tanked, but knew somehow he would come out just fine. He is a scumbag.
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