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Posted on: March 2, 2023, 07:17h.
Last updated on: March 2, 2023, 07:17h.
The Mirage Las Vegas has gone to court in New York City to collect over $25,000 in gaming debt from Manhattan real estate developer Josh Schuster, according to a news report.
Schuster appears to dispute the total amount owed to the casino. But he already paid back $325K to the Mirage for debts linked to his company, Silverback Development.
The $350K in notes were incurred during the 2019 International Council of Shopping Centers (ICSC) conference held in Las Vegas.
Interest Owed
Schuster allegedly signed notes at the casino which promised he would pay the money back.
But the casino’s attorneys claim he still owes $25K plus $4,600 in interest, according to a report from The Real Deal, a national business publication. Schuster incurred a judgment on the debt in Clark County, Nev. court after he didn’t appear for a 2021 hearing.
Such “markers” typically are designed to be interest-free ways that players at casinos can get gambling credit. The signed notes often are supposed to be paid off within a month or so.
Some 20,000 people a year fail to pay on their extended gaming funds, according to Almase Law, a Las Vegas-based firm that specializes casino marker defaults.
But Schuster responded the debt in question was incurred by a Silverback Development client who was at the ICSC conference. Schuster said he expects to settle the debt for an amount less than $25,000.
The Mirage is being transformed into a Hard Rock property. When it’s complete in 2025, the renovated complex will feature the brand’s guitar-shaped hotel tower.
Faces Litigation
Schuster’s firm has completed more than $650 million in real estate development. That translates to one million square feet of space. His achievements led to him getting named a Real Estate Rising Star by The Real Deal. He was also named a Real Estate Forum Emerging Multifamily Leader.
But Schuster has faced other recent litigation. He was the defendant in several lawsuits directed at Silverback.
In the court actions, investors and colleagues reportedly claim he reassigned money from one project to another. Also, $2M allegedly disappeared.
But Schuster told The Real Deal in a March 2022 interview, several lawsuits were settled, projects have been refinanced, and real estate projects were getting completed.
He was confident he will overcome challenges, adding that “it’s always been a struggle for us.”
During The Real Deal interview, he admitted that he learned lessons from the COVID-19-linked downturn in New York’s real estate market.
“I think we’ve learned from the last two years, in the face of potential bankruptcies, with tenants not paying rent, whether it’s office or leasing, with condos that aren’t selling, with lenders calling on your personal guarantee, with construction falling behind, with so much circumstance beyond your control, with everyone talking about leaving New York…”
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