Stalled commercial projects finding new capital
In what could be called a sign of recovery, some long-dormant commercial and multi-family projects have kicked back into gear thanks to an infusion of new lending, according to an article in the Wall Street Journal.
Some of the largest U.S. banks are slowly wading into commercial lending, including J.P Morgan Chase & Co., which has financed as much construction in the first six weeks of 2011 as it did in all of last year.
Oliver McMillan has secured $300 million in private equity funding to take over and complete a major mixed-use project in the Buckhead section of Atlanta. An unfinished casino in Atlanta City, N.J., just received a $1.15 billion cash infusion to complete the project. Boston Properties plans to restart construction this year on a $1 billion Manhattan skyscraper that has sat idle since 2009.The Zaremba Group of Cleveland has a $30 million deal to finish a high-rise apartment complex in Tempe, Ariz.
Plans to resume construction on other stalled construction sites include five San Diego projects and a new headquarters for GlaxoSmithKline in Philadelphia. Some developers are building speculative commercial buildings, such as Monday Properties, which is constructing a 35-story office tower in Rosslyn, Va., even though it has no signed tenants.