Friday, November 14, 2008
Financing woes halt construction on Uptown condo tower
Developers of the partially built Heritage at the Stoneleigh Dallas condominium tower in Uptown are halting construction while they look for financing to complete the building.
In recent months, work crews have shifted their efforts from the tower to the adjoining parking garage and other facilities, which also serve the luxury hotel. During that time, developer Prescott Realty Group has been looking for financing to continue work on the tower. But a pending loan fell through.
"We are taking the crane down off the building this week," said Prescott chief executive Jud Pankey. "There's no need to spend the extra money right now for that."
Mr. Pankey said the builders will still search for financing to complete the project, but it could take until after the first of the year to arrange.
"We were really disappointed when the people we were working with on the financing couldn't make it to the closing table," he said. "But in this environment, it shouldn't be that much of a shock."
The global credit crunch and financial market meltdowns have made it almost impossible for developers to get funding to continue building. Many projects around the country have been delayed or canceled.
Prescott Realty and its partner Apollo Real Estate Advisors completed a major renovation of the 85-year-old Stoneleigh Hotel in the summer. The 118-unit condo tower was to have opened next year.
Mr. Pankey said the developers still plan to finish the building.