--- In [email protected], "wernerapnj" <[EMAIL PROTECTED]> wrote:
>
> Builder puts Asbury high-rise project on hold
>
> By NANCY SHIELDS
> COASTAL MONMOUTH BUREAU
>
> The Hoboken developer building the 224-unit Esperanza high-rise on
> the city's beachfront says it is temporarily closing down the
> construction site and sales office.
Absolutely disasterous.
I am quite aware of difficulties being experienced by developers even
in NYC, which appears on the surface to be the healthiest market.
The cost and availability of financing is drastically different than
it was a few months ago. Most lenders are out of the market and those
that are in are charging much higher rates and requiring much more equity.
What troubles me is Dean's talk of redesigning the project. Hmmm. What
does that mean? Either your plan was sound or it was not. Are they
looking simply to spend less money or did they misjudge the market,
regardless of the credit crisis?
What troubles me is that some of us said that this might become
another C-8. I hope not.
But, how long will the city allow it to be mothballed? How long will
we have to sit with another unfinished project?
The CAFRA permit was received in 2004. The residential market and
interest rates did not start to hiccup until the second half of 2006.
Deals to subdevelopers should have been in the works while the CAFRA
was pending.
I know, I am going back on my recent pledge to move forward and not
cry over spilled milk. Not really. But this is what Partners' and its
greed has wrought and what we allowed them to do.
I am sure the construction lenders simply reneged on their
committments. Metro is not the only one in this position. But the
financing can be had. More equity must be put in. They paid toomuch
for the land.
If summer rolls around and that site is idle, it will be validation of
all the naysayers who said not to believe that this city could come
back. If they are not going to build, make it a park. The worse thing
to have is another C-8 hanging around.
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