SoleilCenter

The Soleil Center In Raleigh Trim Tower Plans

Another big development project is faltering in the face of a poor economy. This time it's the Soleil Center, the 43-story tower in Raleigh, North Carolina. which was to include a Westin Hotel and a 54 condos. Now the project is being scaled back. According to the News & Observer, the Soleil Group wants to build the tower in two phases, creating the 300-room Westin Hotel first and leaving the option to top the hotel with luxury condos until later when the economy improves. The developers plan to start building a 14- to 16-story hotel in the spring. The Soleil Group has already spent $20 million on a foundation that would support a 43-story building.

Construction stopped in June when a lender backed out of the deal. Without having to worry about condo sales it may be easier to find lenders to finance the project. Without the condos, the project could cost roughly $53 million but to build the larger tower it would cost $175 million. While $53 million is still a lot, it's a bit easier to get hotel financing compared to real estate financing right now because it doesn't rely on the promise of sold properties. The project is still in peril, contractors have filed liens against the property seeking payment for completed work.

Gallery: Towers in Trouble