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Gaming Guru

Steve Green
 

After foreclosure, Greek Isles casino has new owner

19 August 2009

By Steve Green, Las Vegas Sun

LAS VEGAS, Nevada -- The Greek Isles hotel-casino in Las Vegas has a new owner now that it has been foreclosed on.

Clark County records show Canpartners Realty Holding Co. IV LLC became the owner of the property last week, buying it with a credit bid of $47 million during foreclosure proceedings -- far less than the $67.3 million owed to Canpartners by the former owner, bankrupt GIH-SPE II LLC.

A spokeswoman for Canpartners had no immediate comment Tuesday on the lender's plans for the property, located on Convention Center Drive between Las Vegas Boulevard and Paradise Road.

Canpartners is an affiliate of Los Angeles investment company Canyon Capital Realty Advisors, which typically sells properties it has foreclosed upon.

Canpartners earlier this summer sought and received permission from a Delaware bankruptcy judge to sell the Greek Isles at auction, saying GIH-SPE had no hope of catching up on delinquent mortgage payments as the property has been losing more than $86,000 per month.

Greek Isles, with 202 hotel rooms and a small gaming operation, was forced into bankruptcy by creditors April 6. A receiver appointed at the request of Canpartners has been running the property.

Canpartners granted a $56 million loan against the property in 2007 -- just before the Las Vegas economy soured as the national recession reduced visitation to Las Vegas.