Poor Donald is Getting Sued Again

As we all know Las Vegas condos have the been leading the buzz in the national housing boom and condo investment market for the past few years.  New Las Vegas condos and high-rise developments have been flooding the market and still are.  Many projects have been canceled due to lack of pre-sales and financing issues.  Construction costs of course have played a major role in slowing things down on the construction side while fleeing investors have helped to slow things down on the buying side.  There are some new condos and condo hotel projects that are actually defying the odds and outpacing other developments with their pre-sales.  City Center is a perfect example of this.  However, many builders and real estate companies have been leasing Las Vegas condos in many of these new developments to provide some form of income.

Nights at Vegas is a local real estate and property management company that is in this situation right now.  The problem for them is that they lease condos in the new Trump International Hotel and Tower.  Donald Trump also owns a lease management company that leases condos in the development and earns a 50% of the rental income.  Nights at Vegas earns 20% of the rental income and users the "Trump" brand for marketing and promotional efforts.  Donald recently banned the firm from using the Trump brand which has completely hindered their ability to operate as it gives the appearance that they have no connection to the development.  Nights at Vegas is suing Donald for $4 billion!  The firm is suing based on violations of anti-trust laws and various unfair competition laws. That is quite a lofty goal!  Good luck!

When things like this start happening it is never a good sogn.  Fortunately, markets like Las Vegas continue to grow in population and attract travelers, events, tradeshows, and entertainment of all kinds.  Las Vegas condos will thrive again...its a question of when!  If developments like City Center can still sell, then there is hope for the rest!