CONDOS SELL AT SLOW PACE

An interesting article in the NY Times today about condo developments and financing. It seems some people that bought condos to flip them are now stuck in the same real estate rut. Development companies that are financed through banks have to pay up but if they haven't sold all their allocated units, how can they? I wonder if any developments here are affected by something liek this

Many condo projects that started during the real estate boom are just being completed, and developers must begin repaying construction loans taken out before the market turned sour. If buyers do not close, and developers struggle, Lenders like Corus may be left holding the bag.
“We’re at the riskiest point of the condo lending cycle as these projects are being completed,” Jefferson L. Harralson, a bank analyst at Keefe, Bruyette & Woods, said. “In the coming weeks and months, we’re going to find out what the demand for these condos really is.”
Real estate clearly was a different story when Corus started
concentrating on lending to condo projects a few years ago. The bank bet heavily that thousands of buyers, many hoping to turn a
quick profit, would snap them up.

READ THE ARTICLE

CARLYLES WATCH CONDO (100 E. GAY ST) AUCTION OCT 28 @NOON

The 8 on the Square project seems to be hobbling along but I didn't think they would make the exterior all brick. If that building is the focal point of that intersection it needs more than that.