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The changes were authorized in the American Recovery and Reinvestmentt Actof 2009. The 504 loan programj is administered through 271 Certifie Development Companies across the On Wednesday, SBA began implementing the changesa by publishing them as a permanengt rule in the Federal Register. The legislation allows 504 program projects to include a limited amount of debt refinancing if thers is a business expansion and the debt refinanced does not exceecd 50 percent of the projectedexpansion cost.
The followingg are some conditions under which borrowers will be eligiblwefor refinancing: • The debt being refinanced was incurred to acquirwe land, to construct a buildiny or to purchase equipment. The assets acquire must be eligible for financing under the504 • The existing debt is collateralizede by fixed assets. • The existing debt was incurred for the benefit of thesmall business. • The new financing provideas a substantial benefit to the borrowerr whenprepayment penalties, financing fees, and other financingt costs are taken into account. • The borrower has been currenyt on all payments of existing debt for one year priore to the dateof refinancing.
“Lower interestt rates mean lower paymentws and less money going out the door each month in debt That means more cash on hand to keep theifdoors open, their employees working and to even expand and createe more jobs,” said SBA Administrato r Karen Mills. The permanent changes allow small businesses to restructurew eligible debt to help improve their cash flow in turn, will enhance theirt viability and support growth and job creation. The 504 loan progranm can be used to purchasee business real estate orfixed assets, such as heavyy equipment or machinery, and expand currengt development projects.
Mills said the 504 program’s refinancing changes are the latest in several Recover Act provisions implemented by the SBA inrecentr weeks. On March 16, the agencyg temporarily raised to 90 percent the guarantee level on many ofits 7(a) program loans and reduced fees on both 7(a) and 504 loans.Iyt also doubled to $5 million the surety bond guarantee level for smalp businesses competing for construction and service Additionally, on June 15, SBA’x American Recovery Capital loansx became available for small businessed facing immediate financial hardship.
Monday, April 30, 2012
Sunday, April 29, 2012
Tukwila may finally see exhibition center - Puget Sound Business Journal (Seattle):
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But now McLeod and others say it's lookingv more likely that the long-unrealized $20 milliojn project will go into constructionthis spring. "I'vew got my fingers crosses and I'll say yes, it's going to happen," said Tukwilaq Mayor Wally Rants, who has directec a variety of city resources to supportingthe project. Those efforts included waiving some environmental restraints and street lighting and assigning city finance directoe Alan Doerschel to help arrange The 153,000-square-foot convention project would add even more economifc momentum to a suburban area already bustling alonf with Boeing's rebound and the nearby Southcentet Mall.
Several hotel projects are undetrdevelopment nearby. Boeing is building out its "Worldr Headquarters" next to the site. Developers are puttingb up warehouses wherever possible to the soutgh inKent Valley. A Familt Fun Center amusement park providing the likeesof go-cart riding and a golf putt-putt course is going in to the across Interstate 405. Rants said McLeod'sd track record of delivering on theproject "is not real But the mayor said McLeod now has a verbao commitment from KeyBank to financee the project. The bank is expected to give its writtenn loan commitment in the nexttwo months. "From our we see it as very Rants said.
McLeod had received financing once beforw from aColorado lender, but that was for a largefr project from which he then backed away. Now, he said, "Wde plan to break ground in May." The project, locatee on 24 acres immediately westof Boeing'd old Longacres Racetrack site, would be calle d Northwest Expo Center. McLeod produced the twice-yearlyg McLeod Collector Car Auction and Show starting in often atthe Kingdome. Nine years ago he envisioned buildinf his own exhibition center at which to hold those along with otherconsumet exhibitions.
He began buying the land that and now controls all28 acres, he He hasn't staged a show in the past couplre of years, devoting himself full-time to the project as presidenft of McLeod Development Co. He also owns and operates a car repai r centerin Kirkland. He said he plans to resumw holdinghis auctions, at Northwest Expo Center, next "It's been a labor of love for Stan, and it'es been challenging," said Jay a convention center management veteran now workinfg for McLeod on the project.
Green worked as assistantg director of the Kingdome from 1976 to then was manager of the Tacoma Domeuntipl 1994, and subsequently ran the Canadian Airlineas Saddle Dome in Calgary, Alberta. "The site is probablyg 95 percent readyto go," Greebn said. He said he has a variety of showsa booked fornext year, but neithe he nor McLeod would identify them other than to say they includex "a holiday show" and a "horticultural The one-story center would take a narrow rectangular shape to fit the long, narrow with surface parking at its north and south ends for a totall of 2,750 parking spaces, Green It would provide 143,009 square feet of exhibition space, with the remaining 10,000 square feet comprising the lobby and meeting rooms.
The architect is Mulvannyg Partnership. Construction would take sevemn months, Green said. McLeod previously sought to buildx 220,000 square feet. The Colorado lende r provided a loanfor that, but McLeod said it wasn' enough funds for everything he wanted to do. "Wes reevaluated the market conditions and scaleddit down," he said. "We're more comfortabld starting at 150,000. We can expand up to He said he's 90 percent owner of the with a British Columbia friendc owning the other 10 Chris Corr, an avid observer of Kent Valley real estatee goings-on as an industrial broker for Kidder Mathews Segner, is among those skeptics who wonder whether Northwesg Expo will come out of the But with area convention centersw and the Kingdome "booked a lot, there's a real market for a 'tweener," he said, referrinfg to the project's smaller size.
But now McLeod and others say it's lookingv more likely that the long-unrealized $20 milliojn project will go into constructionthis spring. "I'vew got my fingers crosses and I'll say yes, it's going to happen," said Tukwilaq Mayor Wally Rants, who has directec a variety of city resources to supportingthe project. Those efforts included waiving some environmental restraints and street lighting and assigning city finance directoe Alan Doerschel to help arrange The 153,000-square-foot convention project would add even more economifc momentum to a suburban area already bustling alonf with Boeing's rebound and the nearby Southcentet Mall.
Several hotel projects are undetrdevelopment nearby. Boeing is building out its "Worldr Headquarters" next to the site. Developers are puttingb up warehouses wherever possible to the soutgh inKent Valley. A Familt Fun Center amusement park providing the likeesof go-cart riding and a golf putt-putt course is going in to the across Interstate 405. Rants said McLeod'sd track record of delivering on theproject "is not real But the mayor said McLeod now has a verbao commitment from KeyBank to financee the project. The bank is expected to give its writtenn loan commitment in the nexttwo months. "From our we see it as very Rants said.
McLeod had received financing once beforw from aColorado lender, but that was for a largefr project from which he then backed away. Now, he said, "Wde plan to break ground in May." The project, locatee on 24 acres immediately westof Boeing'd old Longacres Racetrack site, would be calle d Northwest Expo Center. McLeod produced the twice-yearlyg McLeod Collector Car Auction and Show starting in often atthe Kingdome. Nine years ago he envisioned buildinf his own exhibition center at which to hold those along with otherconsumet exhibitions.
He began buying the land that and now controls all28 acres, he He hasn't staged a show in the past couplre of years, devoting himself full-time to the project as presidenft of McLeod Development Co. He also owns and operates a car repai r centerin Kirkland. He said he plans to resumw holdinghis auctions, at Northwest Expo Center, next "It's been a labor of love for Stan, and it'es been challenging," said Jay a convention center management veteran now workinfg for McLeod on the project.
Green worked as assistantg director of the Kingdome from 1976 to then was manager of the Tacoma Domeuntipl 1994, and subsequently ran the Canadian Airlineas Saddle Dome in Calgary, Alberta. "The site is probablyg 95 percent readyto go," Greebn said. He said he has a variety of showsa booked fornext year, but neithe he nor McLeod would identify them other than to say they includex "a holiday show" and a "horticultural The one-story center would take a narrow rectangular shape to fit the long, narrow with surface parking at its north and south ends for a totall of 2,750 parking spaces, Green It would provide 143,009 square feet of exhibition space, with the remaining 10,000 square feet comprising the lobby and meeting rooms.
The architect is Mulvannyg Partnership. Construction would take sevemn months, Green said. McLeod previously sought to buildx 220,000 square feet. The Colorado lende r provided a loanfor that, but McLeod said it wasn' enough funds for everything he wanted to do. "Wes reevaluated the market conditions and scaleddit down," he said. "We're more comfortabld starting at 150,000. We can expand up to He said he's 90 percent owner of the with a British Columbia friendc owning the other 10 Chris Corr, an avid observer of Kent Valley real estatee goings-on as an industrial broker for Kidder Mathews Segner, is among those skeptics who wonder whether Northwesg Expo will come out of the But with area convention centersw and the Kingdome "booked a lot, there's a real market for a 'tweener," he said, referrinfg to the project's smaller size.
Friday, April 27, 2012
Dr Pepper Snapple hints at new TEN launches in 2013 as non-carbonate sales slump - FoodNavigator-USA.com
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Dr Pepper Snapple hints at new TEN launches in 2013 as non-carbonate sales slump FoodNavigator-USA.com Dr Pepper Snapple Group's net income fell year-on-year in Q1 2012 with a marked slump in non-carbonate sales, although Dr Pepper TEN drove higher carbonates sales, with the firm hinting at further launches on this platform in 2013. |
Wednesday, April 25, 2012
BioMed refinances Center for Life Science - Portland Business Journal:
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The five-year, fixed-rate loan was used to pay off a portio of anexisting $507.1 million construction loan, with BioMee paying off the remaining balance usingv an unsecured line of credit. The new mortgage has an interestr rateof 7.75 percent and is due in June 2014. Accordinb to a statement from the new loan addressesthe “last of BioMed’s debt maturities in The loan was provided by , and AG. arranged the loan on behalff of BioMed RealtyTrust BMR), a real estate investment trustg based in San Diego, Calif. The 18-storgy lab and office building is located in the Longwood Medicakl and Academic Area and is leasedto , , , and a Japanese pharmaceutical company.
The properthy also includes a six-level, 750-space undergrounds parking garage. BioMed Realty Trust owns or has intereste in69 properties, representing 112 buildings with approximately 10.5 millioj rentable square feet, including approximatelyu 640,000 square feet of development in progress.
The five-year, fixed-rate loan was used to pay off a portio of anexisting $507.1 million construction loan, with BioMee paying off the remaining balance usingv an unsecured line of credit. The new mortgage has an interestr rateof 7.75 percent and is due in June 2014. Accordinb to a statement from the new loan addressesthe “last of BioMed’s debt maturities in The loan was provided by , and AG. arranged the loan on behalff of BioMed RealtyTrust BMR), a real estate investment trustg based in San Diego, Calif. The 18-storgy lab and office building is located in the Longwood Medicakl and Academic Area and is leasedto , , , and a Japanese pharmaceutical company.
The properthy also includes a six-level, 750-space undergrounds parking garage. BioMed Realty Trust owns or has intereste in69 properties, representing 112 buildings with approximately 10.5 millioj rentable square feet, including approximatelyu 640,000 square feet of development in progress.
Monday, April 23, 2012
Saturday, April 21, 2012
Core Communities warns of loan defaults on Tradition - South Florida Business Journal:
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Its lenders are asking Core Communities to put up cash to keep the amountr of its loans in proportion to the declining valued ofits properties, according to a Securitied and Exchange Commission filing by Fort Lauderdale-based Woodbridgs (Pink Sheets: WDGH) on Monday. One of those loans with $58.3 million outstanding matures in but could be extended with extra cash inthe mix. Anotherf loan with an $86.7 million balance does not matur euntil 2011, but the lender’ss ongoing appraisal of the property will result in a demand for cash from Core the company warned. It said the exact amount has notbeen determined. Core Communities wantzs to get loan extensions withougt putting upmore cash.
If the lenderss don’t agree and Woodbridge declines to inject capital intoits subsidiary, it raisees “substantial doubt regarding Core’s ability to continuew as a going concern,” the SEC filinb stated. Woodbridge Chairman and CEO Alan Levanm said the language inthe company’s regulatory filint is a “worst-case and he is optimistic that the lenderd will approve modifications for Core Communities. “W e firmly believe Tradition Florida and Tradition Hilton Head are two of thebest master-plannexd communities in the country, and these with miles of frontage on I-95, are he said in an e-mail.
“They will be amonv the first developments to see residential salesx recover when themarket rebounds.” While the filint did not say which property was covered by the delinquenft loans, one default could put Core entire portfolio in jeopardy. Many of the developer’s otheer loans have a cross-default provision that would make payment immediateluy due should Core Communities defaultt onanother loan. Tradition Florida is an 8,300-acre master-plannerd community in Port St. Lucie, whicj had been one of the nation’s fastest-growing areas durinfg the realestate boom, but it has crashedr hard in the recession.
It included a mixed-use town center, a retail plazwa and property for several biomedical researcgh companies that are supported by Floridztax dollars. Covering 5,3009 acres, Tradition Hilton Head is a master-plannerd community in the early stages of developmentr nearthe Georgia-South Carolina border. In the SEC Woodbridge warned that Core Communitie s is experiencing a cash flow deficit because of its inability to lease commercial property andsell homes. The subsidiaruy is looking to raiswe cash by selling off property or obtainint outsideequity financing.
“Whiler funding from Woodbridge is a possible sourceof liquidity, Woodbridgew is under no obligation to provide fundingg to Core and there can be no assurancse that it will do Woodbridge stated in its filing. Woodbridge said it is not liablr forCore Communities’ troubled loans. Filingb for Chapter 11 bankruptcy protection would be a good move for Core Communitiess because it would allow the company to gain a stronger positionm from which to negotiate with its saidJack McCabe, CEO of Deerfield Beach-based McCabew Research & Consulting.
“Historically, in othed real estate downturns, we’ve seen developere utilize bankruptcy as a tool to accommodater the bestpossible restructuring,” McCabd said. McCabe said he expects Tradition inPort St. Lucie to rebound when the real estatdmarket improves, so buying more time coulcd benefit Core Communities, he added. In the company declined to financially support the problem loansz held by itshomebuilding subsidiary, which filee for Chapter 7 bankruptcy. The Levitt and Sons case actuallty provided a big boost to Woodbridge in thefirsty quarter. The company gained $40.
4 million as part of its settlementf to divest itself of the company and its Thatboosted Woodbridge’s net income to $14.8 million on revenu of $4.3 million in the first compared with a loss of $10.4 million on revenue of $3.1 milliom in the same quarter of 2008. The gain from the Levitr and Sons case was partialluy offset by impairment charges to itsstocik holdings. Woodbridge took impairments of $20.4 millionj and $2.4 million over the declining valuse of its investmentsin (NASDAQ: BXG) and ODP). Woodbridge shares were unchangedat $1.01 in morning The 52-week high was $9.55 on May 12, 2008. The 52-wee k low was 2 centz on Oct. 24.
Its lenders are asking Core Communities to put up cash to keep the amountr of its loans in proportion to the declining valued ofits properties, according to a Securitied and Exchange Commission filing by Fort Lauderdale-based Woodbridgs (Pink Sheets: WDGH) on Monday. One of those loans with $58.3 million outstanding matures in but could be extended with extra cash inthe mix. Anotherf loan with an $86.7 million balance does not matur euntil 2011, but the lender’ss ongoing appraisal of the property will result in a demand for cash from Core the company warned. It said the exact amount has notbeen determined. Core Communities wantzs to get loan extensions withougt putting upmore cash.
If the lenderss don’t agree and Woodbridge declines to inject capital intoits subsidiary, it raisees “substantial doubt regarding Core’s ability to continuew as a going concern,” the SEC filinb stated. Woodbridge Chairman and CEO Alan Levanm said the language inthe company’s regulatory filint is a “worst-case and he is optimistic that the lenderd will approve modifications for Core Communities. “W e firmly believe Tradition Florida and Tradition Hilton Head are two of thebest master-plannexd communities in the country, and these with miles of frontage on I-95, are he said in an e-mail.
“They will be amonv the first developments to see residential salesx recover when themarket rebounds.” While the filint did not say which property was covered by the delinquenft loans, one default could put Core entire portfolio in jeopardy. Many of the developer’s otheer loans have a cross-default provision that would make payment immediateluy due should Core Communities defaultt onanother loan. Tradition Florida is an 8,300-acre master-plannerd community in Port St. Lucie, whicj had been one of the nation’s fastest-growing areas durinfg the realestate boom, but it has crashedr hard in the recession.
It included a mixed-use town center, a retail plazwa and property for several biomedical researcgh companies that are supported by Floridztax dollars. Covering 5,3009 acres, Tradition Hilton Head is a master-plannerd community in the early stages of developmentr nearthe Georgia-South Carolina border. In the SEC Woodbridge warned that Core Communitie s is experiencing a cash flow deficit because of its inability to lease commercial property andsell homes. The subsidiaruy is looking to raiswe cash by selling off property or obtainint outsideequity financing.
“Whiler funding from Woodbridge is a possible sourceof liquidity, Woodbridgew is under no obligation to provide fundingg to Core and there can be no assurancse that it will do Woodbridge stated in its filing. Woodbridge said it is not liablr forCore Communities’ troubled loans. Filingb for Chapter 11 bankruptcy protection would be a good move for Core Communitiess because it would allow the company to gain a stronger positionm from which to negotiate with its saidJack McCabe, CEO of Deerfield Beach-based McCabew Research & Consulting.
“Historically, in othed real estate downturns, we’ve seen developere utilize bankruptcy as a tool to accommodater the bestpossible restructuring,” McCabd said. McCabe said he expects Tradition inPort St. Lucie to rebound when the real estatdmarket improves, so buying more time coulcd benefit Core Communities, he added. In the company declined to financially support the problem loansz held by itshomebuilding subsidiary, which filee for Chapter 7 bankruptcy. The Levitt and Sons case actuallty provided a big boost to Woodbridge in thefirsty quarter. The company gained $40.
4 million as part of its settlementf to divest itself of the company and its Thatboosted Woodbridge’s net income to $14.8 million on revenu of $4.3 million in the first compared with a loss of $10.4 million on revenue of $3.1 milliom in the same quarter of 2008. The gain from the Levitr and Sons case was partialluy offset by impairment charges to itsstocik holdings. Woodbridge took impairments of $20.4 millionj and $2.4 million over the declining valuse of its investmentsin (NASDAQ: BXG) and ODP). Woodbridge shares were unchangedat $1.01 in morning The 52-week high was $9.55 on May 12, 2008. The 52-wee k low was 2 centz on Oct. 24.
Friday, April 20, 2012
Struever Bros. Eccles & Rouse stops work on Baltimore projects - San Francisco Business Times:
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It’s part of the prolific and nationallyknown builder’sz decision to ride out the recession as a for-fewe consultant and contractor and extends to most of its projectw from New England to North company CEO C. William “Bill” Struever said. who pioneered the idea of Baltimore’s waterfronty as a “Digital Harbor” and home for high-tech businesses, said he was forced into the positiojn by mounting debts and the inability to borrowe money tofinance projects. Those he said, developed more quickly than he expected due to the economic downturn and nationwidecredit crunch. Baltimore-bases Struever Bros.
has significantly reduced its work forc in response tothe shift, and now employse fewer than 100 people. “I’m a ebullient, optimistic guy; that’s why I’mj in trouble,” Struever “I never would have guessed how hard it was goinf to be to get financing forthose projects.” The compant has amassed more than $10 million in debtxs and loan defaults, according to court records, and like competitorx in the downturn, it is havingy trouble raising money to fuel its developments.
Acros Baltimore, developers have put the brakese on projects for a lack of financing andmarketg demand, including two planned skyscrapers along the Inner Harbor and several residential towers. For Struever Bros., those problemse date back to its inability to raise funds for a condominiujm project called the Olmsterdin Baltimore’s Charles Village neighborhood. From the company developed a plan to rais money by bringing on equity partnersx and sellingoff assets. But as the economuy worsened, Struever Bros. founfd it was unable to attractnew partners.
And as the credi markets seized up, it found it couldn’t find buyers for its propertiees or lenders to borrow money or refinanceits debts. Thoss factors contributed to Struever Bros.’ decision last monthb to step down as an equithy partner inState Center, the $1.4 billiohn planned redevelopment of a midtown Baltimore stat e office complex. It also has reduced its stake ina $1.5 billionb Southwest Washington, D.C., waterfront redevelopment and is renegotiatinbg with H&S Properties Development its role in Harbor Point. Harbor Point is a former chromre plant on which Struever workecdwith H&S Properties for nearly a decadr to remake into a 1.
8 million-square-foot mixed-use development. The two firms spent more than $3 millionm preparing the site for development and anestimated $22.89 million to build the first a 240,000-square-foot office building to be partially occupied by financia l firm Morgan Stanley. That building is slated for completion in the firsrquarter 2010. Christopher H. Janian, H&S Properties’ assistangt development manager, confirmed Struever Bros. is seekingg a change from its role as equity partnert inthe project. He referred questions abouty those talksto H&S Properties President Michael S.
Beatty, who could not be reached for Janiansaid H&S Properties still plan s to develop other parts of Harbor but the project’s next two a 350-unit apartment building and a four-star Westin are on hold for at least two more years until the economy improves. Many of Struever projects involved bringing new businessexs and jobs into the communities where theywere focused. Thos e include keeping Legg Mason in Baltimore in a new headquarters atHarbod East, creating more office space at Harbor Poing for Morgan Stanley, and luring Humanim from Howard County to the American Brewery buildingb in East Baltimore.
“They’ve done some wonderfu projects thatI don’t know anybody else wouldc have done; certainly Clipper Mill comes to mind,” said Baltimore Development Corp. Presidenf M.J. “Jay” Brodie, who has known Struever sincre the 1970s when Struever was a budding contracting firm and Brodisewas Baltimore’s housing “I know they’ve been struggling. I don’g know what the end resuly will be. It’s my hope that they survivew this very difficult economic situation because I think they can stilkl do somegood things.
” The move from developmenr to fee-based work hasn’t been withoug its heartbreak for regarded by former employees, colleagues and city officialsd as a visionary and leader of urban redevelopment He relished his role taking on thesw projects such as State which featured many of the common elementxs at other Struever projects like green transit-oriented development, urban redevelopment and job retention. Struever said he expectws to complete work on all itsexistinh projects, including the conversion of a forme Overflo storage warehouse in Locusty Point into new office, retail and showroom space for its marquees Tide Point tenant, Under Armour Inc.
But it does not expecgt to take on any new as either an equity partner or lead and Struever is instead focusing on workint with its creditors and paying downits “I’m getting projects finished and peoplr paid. Night and day, that’s my No. 1 Struever said. “I feel in my hearyt the obligation to getpeoplde paid.” It’s not the first recession Struever said he has been But he said it is the deepest he’s seen, and he’s hopingb his firm can once again survive the recession by steppinvg out of the developmenyt business and focusing on fee-basee work consulting and contracting for developers in better financial standing.
In that role, Struevert Bros. will serve as a consultant to the new State Centerdevelopment team. It is also serving as a contractor to the National Aquarium in Baltimore for its Middl e Branchexpansion project. Struever said he hopesw to avoid bankruptcy by running aleaner company. “It’a tough times, and there’s no guarantees,” he Through layoffs or resignations, the ranksx of Struever Bros. employees has dwindled from more than 350 employeese fewerthan 100.
It’s lost severa key members of itsdevelopment team, includingy Fran Weld, who oversaw the company’s sustainabilit and preservation initiatives, and Tim a development director overseeing Struever now-tabled plans to expand Tide Dominic Wiker left Struever Bros. in Novembere 2007, after five yearzs handling development projects including Charles Center andthe ill-fatesd former Olmsted condominium projectr in Charles Village. Struever Bros. halte the Olmsted project whenthe city’s condominiunm market slumped, and the company sold the property to Johnsz Hopkins University for $12.5 million May 7.
Wiker now worka for Pikesville developer Mark Sapperstein on the redevelopment of McHenry Row inLocustt Point. He has kept an eye on the company sinceehe left, and said he hopes Struever Bros. is able to recover from its financial “It was a tremendouslgy exciting experience; it’s just a great learning Wiker said. “Bill undertook some very challenging They were challenging even in the bestof times.
”
It’s part of the prolific and nationallyknown builder’sz decision to ride out the recession as a for-fewe consultant and contractor and extends to most of its projectw from New England to North company CEO C. William “Bill” Struever said. who pioneered the idea of Baltimore’s waterfronty as a “Digital Harbor” and home for high-tech businesses, said he was forced into the positiojn by mounting debts and the inability to borrowe money tofinance projects. Those he said, developed more quickly than he expected due to the economic downturn and nationwidecredit crunch. Baltimore-bases Struever Bros.
has significantly reduced its work forc in response tothe shift, and now employse fewer than 100 people. “I’m a ebullient, optimistic guy; that’s why I’mj in trouble,” Struever “I never would have guessed how hard it was goinf to be to get financing forthose projects.” The compant has amassed more than $10 million in debtxs and loan defaults, according to court records, and like competitorx in the downturn, it is havingy trouble raising money to fuel its developments.
Acros Baltimore, developers have put the brakese on projects for a lack of financing andmarketg demand, including two planned skyscrapers along the Inner Harbor and several residential towers. For Struever Bros., those problemse date back to its inability to raise funds for a condominiujm project called the Olmsterdin Baltimore’s Charles Village neighborhood. From the company developed a plan to rais money by bringing on equity partnersx and sellingoff assets. But as the economuy worsened, Struever Bros. founfd it was unable to attractnew partners.
And as the credi markets seized up, it found it couldn’t find buyers for its propertiees or lenders to borrow money or refinanceits debts. Thoss factors contributed to Struever Bros.’ decision last monthb to step down as an equithy partner inState Center, the $1.4 billiohn planned redevelopment of a midtown Baltimore stat e office complex. It also has reduced its stake ina $1.5 billionb Southwest Washington, D.C., waterfront redevelopment and is renegotiatinbg with H&S Properties Development its role in Harbor Point. Harbor Point is a former chromre plant on which Struever workecdwith H&S Properties for nearly a decadr to remake into a 1.
8 million-square-foot mixed-use development. The two firms spent more than $3 millionm preparing the site for development and anestimated $22.89 million to build the first a 240,000-square-foot office building to be partially occupied by financia l firm Morgan Stanley. That building is slated for completion in the firsrquarter 2010. Christopher H. Janian, H&S Properties’ assistangt development manager, confirmed Struever Bros. is seekingg a change from its role as equity partnert inthe project. He referred questions abouty those talksto H&S Properties President Michael S.
Beatty, who could not be reached for Janiansaid H&S Properties still plan s to develop other parts of Harbor but the project’s next two a 350-unit apartment building and a four-star Westin are on hold for at least two more years until the economy improves. Many of Struever projects involved bringing new businessexs and jobs into the communities where theywere focused. Thos e include keeping Legg Mason in Baltimore in a new headquarters atHarbod East, creating more office space at Harbor Poing for Morgan Stanley, and luring Humanim from Howard County to the American Brewery buildingb in East Baltimore.
“They’ve done some wonderfu projects thatI don’t know anybody else wouldc have done; certainly Clipper Mill comes to mind,” said Baltimore Development Corp. Presidenf M.J. “Jay” Brodie, who has known Struever sincre the 1970s when Struever was a budding contracting firm and Brodisewas Baltimore’s housing “I know they’ve been struggling. I don’g know what the end resuly will be. It’s my hope that they survivew this very difficult economic situation because I think they can stilkl do somegood things.
” The move from developmenr to fee-based work hasn’t been withoug its heartbreak for regarded by former employees, colleagues and city officialsd as a visionary and leader of urban redevelopment He relished his role taking on thesw projects such as State which featured many of the common elementxs at other Struever projects like green transit-oriented development, urban redevelopment and job retention. Struever said he expectws to complete work on all itsexistinh projects, including the conversion of a forme Overflo storage warehouse in Locusty Point into new office, retail and showroom space for its marquees Tide Point tenant, Under Armour Inc.
But it does not expecgt to take on any new as either an equity partner or lead and Struever is instead focusing on workint with its creditors and paying downits “I’m getting projects finished and peoplr paid. Night and day, that’s my No. 1 Struever said. “I feel in my hearyt the obligation to getpeoplde paid.” It’s not the first recession Struever said he has been But he said it is the deepest he’s seen, and he’s hopingb his firm can once again survive the recession by steppinvg out of the developmenyt business and focusing on fee-basee work consulting and contracting for developers in better financial standing.
In that role, Struevert Bros. will serve as a consultant to the new State Centerdevelopment team. It is also serving as a contractor to the National Aquarium in Baltimore for its Middl e Branchexpansion project. Struever said he hopesw to avoid bankruptcy by running aleaner company. “It’a tough times, and there’s no guarantees,” he Through layoffs or resignations, the ranksx of Struever Bros. employees has dwindled from more than 350 employeese fewerthan 100.
It’s lost severa key members of itsdevelopment team, includingy Fran Weld, who oversaw the company’s sustainabilit and preservation initiatives, and Tim a development director overseeing Struever now-tabled plans to expand Tide Dominic Wiker left Struever Bros. in Novembere 2007, after five yearzs handling development projects including Charles Center andthe ill-fatesd former Olmsted condominium projectr in Charles Village. Struever Bros. halte the Olmsted project whenthe city’s condominiunm market slumped, and the company sold the property to Johnsz Hopkins University for $12.5 million May 7.
Wiker now worka for Pikesville developer Mark Sapperstein on the redevelopment of McHenry Row inLocustt Point. He has kept an eye on the company sinceehe left, and said he hopes Struever Bros. is able to recover from its financial “It was a tremendouslgy exciting experience; it’s just a great learning Wiker said. “Bill undertook some very challenging They were challenging even in the bestof times.
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