Blackstone’s The Cosmopolitan sale “most profitable ever”
Estimated profits could reach $4.1bn, according to a recent report.
Blackstone has said its sale of The Cosmopolitan for $5.65bn was “most profitable single asset sale ever.”
Though the real estate company did not disclose its profit figures generated from the sale, a report in The Wall Street Journal has estimated Blackstone will walk away with at least $4.1bn, including cash flow from its operations.
Blackstone owns several Las Vegas MGM Resorts-operated properties, including Bellagio, Aria and Vdara, and continues to remain one of the largest landlords on the Las Vegas Strip. The real estate company announced May 17 that it was selling the The Cosmopolitan.
The sale of The Cosmopolitan is the largest transaction to date in Las Vegas that did not generate money for real estate taxes.
Nevada Governor Steve Sisolak said state lawmakers should address this issue during its next legislative session.
However, Blackstone claims it paid the appropriate amount of state and local taxes, and followed the regulations set out by the state’s tax code.
The company said in a statement: “Over the course of our ownership of The Cosmopolitan, Blackstone abided by the tax code and paid hundreds of millions of dollars in state and local taxes, while also investing in the property, securing thousands of jobs, and giving $5,000 bonuses to all employees to acknowledge their amazing contributions.”
Blackstone first purchased The Cosmopolitan in 2014 for $1.73bn, during a time when property values in southern Nevada collapsed and the market imploded.
The company said it invested more than $500m in the property. Funds were used to add 70 new rooms and renovate 3,000 existing ones.
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