JSOnline: Economic downturn dooms Park East development
Chicago developer, Richard Curto of RSC & Associates, has cancelled one of two proposals planned for the Park East which would have created a housing, retail, and entertainment complex. The reason? According to Curto, the economic slowdown, specifically in the retail industry, has made it difficult for many of the Park East developments to break ground. On top of that, the slowdown in the condo market hasn’t helped either. Finally, commercial lenders have also cut back on the number of loans for large real estate developments.
RSC was proposing to build 175 residential units and 185,000 square feet of commercial space in the empty parcel bordered by Milwaukee, Broadway, Lyon, and Ogden.
RSC is still hopeful that their other proposal in the Park East will move forward. Curto is planning to build a 122-room Hyatt Place hotel and a 102-room Hyatt Summerfield Suites on a parcel bordered by Milwaukee, Jefferson, Lyon, and Ogden.
RSC is not the only real estate developer feeling frustrated about this sluggish economy. Robert Ruvin of Ruvin Development has two developments that have been delayed – Aloft and The Residences of Hotel Palomar. However, Ruvin is optimistic that both of these developments will break ground in 2008. The sales team of The Residences of Hotel Palomar has been quite busy. Unlike most newly-constructed developments, Palomar is by-passing the reservation stage and going straight to contract with the sale of their high-end condominiums.
Ruvin was hoping to break ground on his six-story, 160-room Aloft hotel (managed by Starwood Hotels) on a parcel bordered by the Milwaukee River, Old World Third Street, McKinley and Juneau by this past summer. Although there hasn’t been any work done on the site, it appears that work will begin before the end of the year.
Tom Daykin, writer for The Milwaukee Journal Sentinel, describes how the current economic slowdown is affecting other parts of downtown including the Park East. Click here to read what other developments are being affected by this slowdown>>>
-----Labels: Real Estate
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