Lack of Funding Scuttles Atlanta Mixed Use Project

Atlanta, GA, Oct. 14, 2008--All the elements were seemingly in place for Fred Astaire’s project, a condo complex east of downtown Atlanta to be called Cabbagetown Gateway, according to a story in the Atlanta Journal-Constitution.

Astaire and his two partners had obtained a loan to buy a nearly 1-acre tract that offered stunning views of the city’s skyline. By the middle of 2007, plans were drawn up, a building permit had been issued, and funding was obtained to ready the site for construction.

Workers graded the site, put in sewers and installed a foundation.

Then — nothing.

For months, the site has been quiet as Astaire and his partners sought in vain for a construction loan that would allow them to build a 23-unit complex with ground-level retail.

Their timing was awful. The local real estate market hit the skids, causing banks to rein in their lending — particularly for new condos in a city with a glut of units. Unable to get a loan, the group put the property up for sale about three months ago.

“It’s amazing how serious this little economic crunch is,” Astaire told the newspaper.

Astaire has been turned down by four banks as well as out-of-state loan brokers. He said money was available from private investors, but the interest rates they wanted were too high.

“It’s called speculative building for a reason,” he said. “Nothing is guaranteed.”