Filed under: Real Estate Developments
A year ago the Calgary condo market was booming but now one of the major residential condominium projects has been put on hold as the developer seeks bankruptcy protection. Calgary developer John Torode told the Calgary Herald that work has stopped on the second tower of the Arriva condo project. A limited partnership which is the owner of that site has been put into the CCAA (Companies' Creditors Arrangement Act) which is a federal act that allows financially troubled corporations to restructure their affairs. The project is seeking new financing.
The first Arriva tower is 34 stories and is close to sold out. The second tower is 42 stories and about 60 percent sold. The third tower, which was going to be more condos will now be a hotel.
This isn't the first condo project to be stopped in the area. The City of Calgary is monitoring nine condo projects halted due to the economy. The Calgary Real Estate Review blog has an excellent post rounding up projects that have been postponed, scaled back or scrapped.It's a long list and one that may grow as condo prices also are falling in the area.