Work Stops At Vancouver's Ritz-Carlton Tower
Construction has stopped at the site for the 58-story Ritz-Carlton tower in Vancouver. The real estate developer, the Holborn Group, says that the work stoppage is not due to the economic crisis but that they are looking at design changes to the structure and attached parkade. The $500 million project is currently just a hole in the ground. Workers have been sent home and the signs announcing the building were removed. The sales office is now only open by appointment. So far 50% of the condo project has been sold (20 stories are planned for the hotel and 38 for the condo units). No word yeti on when the project will resume. The luxury condos have been priced between $2.5 million and $10 million, with the penthouse priced at $28 million.
Reader Comments (Page 1 of 1)
Len Oct 22nd 2008 5:26PM
Hi Deidre,
Living in Vancouver this is all over the news. The developer's marketing agent is quoted as saying that the project was halted because when all of the construction costs were tendered, the price of raw materials such as concrete, rebar, etc...were through the roof.
They "supposedly" are renegotiating those contracts to get better prices before continuing construction. With it being just a hole in the ground currently, it is the best time to halt a project of this magnitude.
I guess we'll hear over the coming weeks or months, if this really is the case, or if it is more. If I were the developer, I can tell you that I would be doing the same thing.
Selling out the other half of the project in a downward real estate market, at costs fixed for an increasing market would be a sure ticket to bankruptcy for most.
Deidre Woollard Oct 22nd 2008 5:29PM
Thanks for the comment, Len. It's always nice to hear the local scoop. I think this is a problem that is a challenge for a lot of developers, the costs of building have gone up dramatically over the past couple of years.
Jack Oct 23rd 2008 12:39AM
I think it's time to fix existing buildings by increasing the performance and improving the aesthetic, but above all to teach people how to get the best results from this redevelopment.
Unfortunately, with this crisis I don't believe in the continuous development of new building.
Randy Oct 23rd 2008 12:20PM
Removing signage, halting pre-sells, and closing a sales office are not actions commensurate with a stated need to re-negotiate materials contracts or to adjust parkade designs.
Blatant misrepresentations by people whose businesses are built upon trust are the height of folly, and the very reason why investment banks no longer grace Wall Street.
People have memories, and a large crater in the centre of downtown Vancouver will be a visceral reminder of this folly, as the earlier unfinished facade in this location long has been.
Shame on the development community of Vancouver for paralleling the mistakes of Wall Street. At least they haven't sold swaptions to insure buyers against a real estate market collapse.