CityCenter’s Price Tag Climbs
Author: Diana Heeb Bivona
MGM Mirage has confirmed that the cost of its CityCenter project has increased by $400 million to $7.4 billion. The increase is due in part to an additional 670,000 sf of construction. The increase, however, is being offset by an expected $2.7 billion in residential sales, up $200 million from previous expectations, resulting in an estimated net cost of $4.7 billion, excluding land costs and pre-opening expenses.
CityCenter includes 2,700 private residences, two 400-room non-gaming boutique hotels, a 60-story, 4,000-room resort casino and a 470,000-sf retail and entertainment district. In January 2007, sales of residential units started. Current executed sales contracts are expected to result in gross sales proceeds of $800 million.