raleigh

Hue Condo Sales Stop In Raleigh

The largest condo project ever attempted in Raleigh, North Carolina has closed without ever selling a unit. The multicolored Hue building has closed its sales office without selling any of its 208 units. The Raleigh News & Observer reports that signs posted on the building's doors say Hue will be closed until further notice.

The condo complex was designed to attract young urban buyers but it hit the market last year at the worst possible time. Condo projects have to have a certain percentage of their units presold to qualify for Fannie Mae and Federal Housing Administration approval and this building wasn't able to get enough presales. Without the approval many mortgage brokers won't issues loans. There is a possibility that that the building could end up as rental units for a time.

Tags: condos in trouble, hue, hue building, north carolina real estate, raleigh

The Soleil Center In Raleigh Trim Tower Plans

by Deidre Woollard (RSS feed) —

Filed under: Real Estate Developments

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