JSOnline: Plans to redevelop buildings dropped - Economic conditions lead to withdrawal of hotel, condo projects
Recently, two real estate developers have cancelled proposals in the downtown area due to the volatile state of the mortgage industry. The mortgage crisis, which came about the fallout from the subprime mortgage markets, has not only complicated residential transactions, but has also made financing larger commercial projects difficult. Nearly every mortgage provider has reorganized their lending policies, making it more difficult for real estate purchasers and real estate developers from obtaining the necessary financing. In addition, many real estate developers have postponed their developments due to the challenging economic conditions.
Tanesay Development LLC, a Denver firm that specializes in redeveloping former industrial properties, has dropped its proposal for redeveloping the former Gallun Tannery site. Tanesay was planning to develop housing and retail space on this former tannery’s site.
Gabaldon Properties LLC is also not proceeding with plans to convert the seven-story Posner Building into a 160-room Holiday Inn Hotel & Suites. The Posner Building is located on the corner of Wisconsin Avenue and First Streets. Mo’s Irish Pub is one of the largest tenants of the Posner Building.
One of Tanesay’s principal said, “Demand for housing near downtown remains strong, but there are enough nearby units under construction to meet that demand for the foreseeable future.”
Tom Daykin, writer for the Milwaukee Journal Sentinel, writes more about another real estate development that was hit hard by recent economic conditions and mortgage fallout, First Place on the River. For months I have blogged about First Place on the River. This month, I decided to give this development a rest. However, plenty of articles have been posted on this topic since last month. The good news for investors at First Place is that Barry Mandel of The Mandel Group is taking over operations of this site and will continue to sell off any remaining condominium units. Click here to read the latest regarding Gallun and Posner Building>>>
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Labels: Real Estate
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