Deutsche Bank unloads The Cosmopolitan for $1.73B - FOX5 Vegas - KVVU

Deutsche Bank unloads The Cosmopolitan for $1.73B

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In this undated image, the unique lights of The Cosmopolitan of Las Vegas shine. (File/FOX5) In this undated image, the unique lights of The Cosmopolitan of Las Vegas shine. (File/FOX5)
LAS VEGAS (FOX5) -

Deutsche Bank announced Thursday morning that it plans to sell The Cosmopolitan of Las Vegas to Blackstone Real Estate Partners.

According to the financial institution, Blackstone will acquire 100 percent of the boutique property in the heart of the Las Vegas Strip for $1.73 billion.

"As part of our Strategy 2015+, the bank is committed to reducing its non-core legacy positions in a capital efficient manner which benefits shareholders," said Pius Sprenger, head of the bank's non-core operations unit. "We are pleased to have agreed to this sale and to have delivered on our commitment."

Blackstone's real estate portfolio includes Hilton Hotels, the Waldorf Astoria in New York City and the Hotel del Coronado on Coronado Island in California.

In Nevada, Blackstone owns a small piece of Caesars Entertainment, the Hughes Center business park and about 1,000 homes.

"As a significant investor in the hospitality sector, Blackstone recognizes the value and potential in The Cosmopolitan as well as Las Vegas itself," said Tyler Henritze, senior managing director of Blackstone's real estate group.

Cosmopolitan's CEO John Unwin expressed excitement about the deal.

"This marks the beginning of the next chapter for The Cosmopolitan of Las Vegas, and the thousands of dedicated CoStars (i.e. employees of the property) who are committed to providing a compelling guest experience," Unwin said.

At face value, the sale is a win for The Strip.

"The best impact for The Strip will be the positive impact on real estate prices," said UNLV's David G. Schwartz. "Since the recession those have been down quite a bit."

There could be concern from employees, however.

The Culinary Union, which represents about 2,000 Cosmopolitan employees, has been in a highly publicized battle with the resort over a contract dispute.

"The labor dispute has been about whether workers can have a contract with the opportunity to provide for their families," said Culinary Union head Geoconda Argüello-Kline. "The Blackstone Group owns the Hilton hotel company, which is one of our union's largest employers. We will work tirelessly to ensure workers are retained during this transition."

The deal is pending regulatory approval, according to the bank.

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