Sluggish Las Vegas Condo Sales Batter MGM's Bottom Line

---

Problems with condo sales in Las Vegas helped push MGM Mirage to a $96.7 million loss in the first quarter, the company reported.

MGM will take a $171 million non-cash impairment charge on condos in City Center, the mega-resort it's developing on The Strip with Dubai World. The company also says it will take depreciation expenses of $69 million and preopening expenses of $6 million on the closely-followed project, which includes 2,400 residential units.

So far, buyers have forfeited $24 million in deposits in the development, which officially opened two months ago, the company says. That news was seen as a positive development for the quarterly report, adding revenue to the company's bottom line, but news of buyers walking away from their deposits certainly doesn't bode well for the project.

"Las Vegas was still very weak ... there were some pockets of strength, like international business, but for the most part it was very challenging," MGM Mirage chief executive Jim Murren told Reuters.

Between January and March 31, 25 condominium sales with a total price of $38 million in the next two towers scheduled to complete, Vdara and the Mandarin Oriental, according to research firm Union Gaming Group.

---