Debt Thick, Goodbye Nic

Bear with us while we try out a few puns based on Nicolas Cage movies.

Looks like Nicolas Cage might be "leaving Las Vegas" for good! Har!

Or: Nicolas Cage’s "honeymoon in Vegas" is over! Get it?!

Actually, Cage almost certainly isn’t laughing at the latest turn of events involving his real estate holdings, besieged and beset as they are by federal income-tax liens and bank takeovers.

A buyer plans to close a deal this week to purchase the 14,306-square-foot Spanish Hills home that Nevada State Bank foreclosed on in December for $4.89 million. The 7-year-old property, which Realtor Ken Lowman listed on Thursday, spent less than a day on the market before an out-of-state businessman snagged it for close to its $4.95 million asking price.

Lowman said he didn’t know how much Cage owed on the home.

He also wouldn’t identify the new owner, but he said the buyer plans to hang onto the home for three to five years to "watch the economy and the market come back." The buyer will pay cash for the unfurnished home in an agreement that’s expected to close Wednesday.

In some ways, Cage is like so many other Las Vegans who bought homes with outsized loans at the market’s apex. He bought the Spanish Hills property in September 2006 for $8.5 million.

Where the Oscar winner’s story differs from most others is in the magnitude of his financial collapse. Cage, whom Forbes ranked as the country’s fifth-highest paid actor in 2009 with earnings of $40 million, had amassed an estate that included 15 homes, four yachts, a Gulfstream jet and millions in jewelry and art, according to celebrity-gossip Web site TMZ.com.

Cage’s Spanish Hills home looked to be part of a plan to buy houses across the country and "profit from them," Lowman said. "All of a sudden, that plan doesn’t look like it’s going to work out."

That’s for sure.

Today, Cage owes the Internal Revenue Service roughly $13 million in back income taxes. He’s sold or listed for sale properties in Germany and California. Two homes he owned in New Orleans went up for auction in November to help cover $5.5 million in unpaid home loans, and he’s listed a $12 million Rhode Island property on which he owes $128,000 in back taxes.

Nor was Cage current on his local property taxes. Lowman said the actor owes Clark County more than $61,000 in levies from fiscal 2008 and 2009. The revenue should be paid when the sale closes.

Cage sued his former business manager, Samuel Levin, in October for $20 million, saying Levin gave him bad financial advice. Levin has countersued, faulting Cage’s high-flying lifestyle for his budget problems.

So why was Cage’s house "gone in 60 seconds?" (Sorry.)

For starters, it was priced right, at roughly half the price it went for three years ago, Lowman said.

It also has distinctive features, including a "full-on" view of the Strip, a 16-car underground garage, an elevator and a theater, Lowman said. The house has six bedrooms and 71/2 baths.

The kind of price break offered on Cage’s home is helping spur sales in the broader luxury-home market, Lowman said. Roughly a third of high-end homes sold today are foreclosures. That’s well below the 70 percent foreclosure-sale rate among average-priced homes, but it still means abundant bargains for wealthy buyers seeking deals. Plus, the stock market has bounced back from its March 2009 lows, and when their investments recover, affluent consumers feel better about buying expensive properties. That’s why Lowman believes sale prices on luxury homes aren’t likely to fall much more.

Prices "are probably very close to the bottom," he said.

Contact reporter Jennifer Robison at jrobison@reviewjournal.com or 702-380-4512.

ad-high_impact_4
Business
Holiday shopping and returns make this the busiest time of year for UPS
The UPS Las Vegas South facility is the company's busiest pre-load operation in the country, and it's even busier this time of year. (K.M. Cannon/Las Vegas Review-Journal)
Primm’s outlet mall has fallen on hard times
The mall, attached to Primm Valley Resort, opened in 1998. Back then, it was a “textbook, perfect outlet-center location." But now, Primm’s outlet mall has fallen on hard times. Las Vegas Boulevard has endless shopping spots. And there are other outlet malls that don’t require a hefty drive to the state line. Its mortgage-holder foreclosed on the mall in late September.
Miltary auction at Ritchie Bros. Auctioneers
Humvees, ammo cans, construction equipment, field gear and more is on the auction block Friday and Saturday at Ritchie Bros. Auctioneers. About 10,000 items in all are for sale in what GovPlanet bills as the largest auction of its kind.
Las Vegas residents discuss avoiding holiday scams
Las Vegas residents discuss their donation habits and how they avoid giving money to scam charities during the holiday season. (Bailey Schulz/Las Vegas Review-Journal)
Tesla’s Nevada Gigafactory ahead of economic impact expectations
The Tesla Gigafactory’s economic impact on Nevada has exceeded projections, bringing in more than 7,000 jobs. In 2014, Nevada agreed to give the automotive and energy company $1.3 billion in tax abatements. In return, Tesla promised to meet certain requirements in areas like employment and capital investment. As of June, Tesla has brought in a total of $6.05 billion in capital investment, surpassing the $4.95 billion projection. The original contract gave the company until 2024 to make $3.5 billion in capital investments in Nevada. Derek Armstrong, deputy director of the Governor’s Office of Economic Development.
Land sales near the Las Vegas Raiders stadium
Land around the Las Vegas stadium site has been selling for high prices. A few months before the stadium’s groundbreaking, Global Trust Group acquired a 2.5-acre parcel just north of the stadium site. The property sold for $7.25 million, or $2.9 million an acre. Osprey Real Estate Capital and Huntington Hotel Group acquired a 2-acre industrial site just west of the stadium site in late November. The property sold for $6.5 million, or $3.15 million per acre. That's roughly 12 times the average price of land in the valley this year as tracked by Colliers International.
T-Mobile Tech Experience Truck parks in Toshiba Plaza at T-Mobile Arena
The Tech Experience Truck is a state-of-the-art showroom on wheels, with demonstrations that put connected drones, smart cities, augmented/virtual reality and smart tracking. The exhibit shows new wireless technology – including 5G and the Internet of Things (IoT). (K.M. Cannon/Las Vegas Review-Journal)
Steve Siegel, CEO of the Siegel Group, speaks about helping families and other needy residents
Steve Siegel, CEO of the Siegel Group, speaks about helping families and other needy residents to keep them from teetering off into homelessness. Bizuayehu Tesfaye/Las Vrgas Review-Journal @bizutesfaye
Crowds camp out for Chick-fil-A opening
Dozens of customers camped out 24 hours ahead of the 6 a.m. Thursday opening of the new Chick-fil-A on Rainbow Blvd.
Cheapest listings for sale in Las Vegas
Listed for $39,990, 585 S. Royal Crest Circle, Unit #9 is one of the cheapest homes currently listed for sale in Las Vegas. (Caroline Brehman/Las Vegas Review-Journal)
MGM's sports betting deals
MGM Resorts International signed a sports betting sponsorship agreement with the NBA in July It was the first professional sports league to have official ties with a legal sports betting house. The deal came just two months after the U.S. Supreme Court overturned a law prohibiting sports betting in most states. In October, MGM became the first gaming company to sign a sports betting partnership with the NHL. In November, MGM became the first gaming company to sign a sports betting partnership with the MLB. Financial terms of Tuesday’s deal and earlier partnerships have not been announced.
Terry Miller discusses Convention Center
Project Manager Terry Miller explains the phases of Convention Center construction.
Zappos treats their team members on Cyber Monday
Zappos rolls out a variety of food, drinks and special activities for all team members at their downtown Las Vegas headquarters for Cyber Monday. (K.M. Cannon/Las Vegas Review-Journal)
Team Hybrid at the 2019-Model Motor Trend International Auto Show
Among the companies showing off the 2019 model cars, Team Hybrid shows off its modified cars. Las Vegas resident David David talks about the team, which is in its ninth year exhibiting at the show, and his show car.
Black Friday Shoppers at downtown Summerlin and at the Arsenal
Black Friday shoppers at downtown Summerlin and at the Arsenal. Bizuayehu Tesfaye/Las Vegas Review-Journal @bizutesfYe
Black Friday shopping in Las Vegas
Black Friday sale shopers express their shopping experience. Bizuayehu Tesfaye/Las Vegas Review-Journal @bizutesfaye
Las Vegas Livestock recycling Strip food waste
Las Vegas Livestock collects and recycles food from many Las Vegas Strip companies. (Nicole Raz/Las Vegas Review-Journal)
Black Friday at Fry's
Shoppers line up for deals early on Black Friday at Fry's Electronics on Las Vegas Boulevard South. (Mat Luschek/Las Vegas Review-Journal)
Black Friday shoppers at Best Buy at 5 am
Black Friday shoppers at Best Buy at 5 am on Nov. 23. (Mat Luschek/Las Vegas Review-Journal
Black Friday - 1am Closing Time
Quiet night.
Black Friday - 12:30am - Best Buy Arroyo Crossing
Sam's Town Holiday Lighting Ceremony
On Wednesday, Nov. 21, 2018, Mystic Falls Park opened with its annual tree lighting ceremony, hosted by Boyd Gaming Executive Chairman Bill Boyd. The attraction features a Winter Wonderland theme and holiday-inspired laser light show, available daily Nov. 23 to Jan. 1. (Mat Luschek/Las Vegas Review-Journal)
What Is A Smart City?
George Karayannis, vice president of CityNow, Panasonic’s smart-city arm, explains. (Nicole Raz/Las Vegas Review-Journal)
Walmart uses virtual reality to train employees
Walmart Academy Facilitator demonstrates the VR training program being used by Walmart stores across the country.
With holidays around the corner, department stores hiring extra staff
J.C. Penny hired 72 seasonal workers this year at the Galleria at Sunset mall in Henderson in order to handle the heavy traffic of the holiday shopping season. (Rachel Aston/Las Vegas Review-Journal)
Startup Weekend fosters new businesses
With the help of entrepreneurial peers and an expert panel of mentors, Techstars Startup Weekend fosters the ideas of attendees into marketable business plans. (Rachel Aston/Las Vegas Review-Journal)
Mecum Car Auction in Las Vegas
The Mecum Auctions is held at the Las Vegas Convention Center. Bizuayehu Tesfaye/ Las Vegas Review-Journal @bizutesfaye
Construction underway for new Google Data Center
Henderson is slated to be home to a new Google data center in December 2020. The Governor’s Office of Economic Development approved $25.2 million in tax abatements for Design LLC, a wholly-owned subsidiary of Google. The company plans to build the data center on 64 acres of land on Warm Springs Road west of Boulder Highway.
Anthony Rufo talks about his new product, an in-home digital companion and monitor.
Anthony Rufo talks about his new product, HAPPIE Home technology, an in-home digital companion and monitor designed for unpaid family caregivers that gives personalized alerts, messages and reminders. Bizuayehu Tesfaye/Las Vegas Review-Journal @bizutesfaye
Holiday parades help bring shoppers to Downtown Summerlin
Sports Town USA floor manager Angela Gardonio talks about the work that goes into the Downtown Summerlin holiday parades and how they benefit her and other businesses there.
TOP NEWS
News Headlines
Add Event
Home Front Page Footer Listing
Circular
You May Like

You May Like