Major Commercial Property Projects Derailed
Stuart Kaplan, commercial real estate partner, was recently quoted by the Associated Press concerning the slowing of the real estate market. Developers, especially condo developers, are vulnerable to investors reneging on their contract, which leads them to scramble to find alternative financing to pay off the mortgage.
"If a developer acquired the property at step one with an acquisition loan and then, at step two, the lender asks for more equity to get a construction loan, the developer was not counting on that," said Mr. Kaplan.
“Credit Crunch Crimps Commercial Development” by J.W. Elphinstone was circulated by the Associated Press on July 22, 2008. For more information, please visit biz.yahoo.com.