Milwaukee Condo & Real Estate Scene

The Business Journal of Milwaukee: Ghazi insists downtown project still on

The Ghazi Company ("Ghazi"), the real estate developer who has proposed to construct the $200 million Catalyst on Wisconsin Avenue (across from the Midwest Airlines Center), has faced financial disputes involving another high-profile development at his EpiCentre in Charlotte, North Carolina. Ghazi insists that these disputes in Charlotte will have no effect on Catalyst.

These disputes over EpiCentre were due to a strained relationship between Ghazi and Flaherty & Collins Properties of Indianapolis, which is the contractor for the 42-story condo tower. Flaherty & Collins are refusing to pay Ghazi for construction stating that the foundation is not sufficient for the development.

Ghazi countered this action. On June 2, Ghazi filed a breach of contract claim against Flaherty & Collins seeking payment and $92 million in damages. Flaherty & Collins countered Ghazi's lawsuit seeking $70 million. Both lawsuits are pending.

Although delayed, Ghazi is planning to break ground on Catalyst in spring 2009.

In addition, Ghazi has modified his plans for Catalyst. Ghazi was originally proposing a 31-story hotel, retail, and residential development. As of this report, Ghazi has indefinitely postponed the residential portion of this development, stating that financial institutions have tightened their lending policies for residential developments. The original proposal included approximately 200 condos and apartments.

Rich Kirchen, writer for The Business Journal of Milwaukee, provides details of both lawsuits as well as discusses the impact these lawsuits have on Milwaukee's Catalyst. Click here to read the entire article>>>


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Labels: Real Estate

posted by David Ray @ 2:32 PM