Thursday, December 10, 2009

MGM City Center Provides Financing for Las Vegas Condos

The following excerpts were taken from this week's MGM City Center press release announcing that City Center will be providing mortgages for condos and condo hotel units in its 67 acre mega development on the Las Vegas Strip. This is great news for Las Vegas condo purchasers who wrote checks for 20 to 30% down payments five years ago but have been unable to secure outside financing since the Las Vegas real estate crash. Along with City Center's recent price reductions to meet current market conditions, MGM Mirage seems to be doing everything possible to ensure that the MGM City Center development is a huge success.

LAS VEGAS (December 8, 2009) – CityCenter Holdings, LLC today announced that it has selected Private National Mortgage Acceptance Company, LLC (“PennyMac”) to serve as a lending resource for buyers of condominiums and condo-hotel units at CityCenter. PennyMac will assist buyers in arranging financing for their residential purchases. CityCenter, a joint venture of MGM MIRAGE (NYSE: MGM) and Infinity World Development Corp, a subsidiary of Dubai World, also announced that it intends to provide a seller financing program to well-qualified buyers, which will also be administered by PennyMac.

“PennyMac will be a resource to help our customers to assess their financing options and assist them with the closing of their purchase,” said Bobby Baldwin, President and Chief Executive Officer of CityCenter. “We are pleased to provide qualified buyers an additional option through a competitive seller financing program.”

PennyMac, through its subsidiaries, will coordinate loan origination, servicing, and secondary market activities. PennyMac has partnered with EvoFi One, a leading lender headquartered in Nevada, as an origination provider for this development.The seller financing program will include both a fixed rate and a variable rate option. With the assistance of PennyMac, CityCenter has developed a comprehensive program which takes both the buyer’s financial standing and their purchase into consideration when determining loan terms.

CityCenter also recently announced a 30 percent price reduction to buyers who consummate existing purchase contracts and who execute an addendum to their existing purchase and sale agreement. “We have spoken to the majority of our buyers since the price adjustment announcement, and it is clear that our efforts has been well received,” said Tony Dennis, Executive Vice President, CityCenter Residential Division. “By adding PennyMac as a lending resource, we now provide our buyers with a Las Vegas mortgage option to assist with their closing needs.”

CityCenter closings are scheduled to begin in January 2010 with buyers of The Residences at Mandarin Oriental, Las Vegas. Veer Towers closings are projected to begin in February 2010 and Vdara Condo Hotel closings in March 2010.

It is hoped by local residents that the more than 12,000 jobs created by the massive City Center project will boost the economy and spur Las Vegas homes sales this spring. Banks have been holding their inventories of Las Vegas foreclosure homes off the market in hopes that prices would rise in the first part of next year allowing them to recoup some of their losses.

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