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Raleigh Growth Hurt by Mortgage, Credit Crisis

Posted March 28, 2008
Updated March 29, 2008

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— Growth in Raleigh is taking a hit amid the credit and mortgage crisis, but officials are optimistic for long-term development downtown.

David Reynolds, a Raleigh developer, said his next major project is a 23-story hotel and condo project on the corner of Dawson and Hillsborough streets. Construction was scheduled to begin next month, but has been placed on hold.

“I divide the world into things in my control and things outside of my control, and right now, the whole credit situation is firmly outside my control,” Reynolds said.

Reynolds believes Raleigh is somewhat insulated from the major downturn felt in other cities, but even here, lenders are changing requirements on projects to which they have already committed.

“I’ve never seen such over-reaction,” Reynolds said.

Developers of the Lafayette Hotel in downtown Raleigh recently announced a delay, as well as for a major condo project at North Hills off Six Forks Road in north Raleigh.

Paul Reimel, of the Downtown Raleigh Alliance, said he is nonetheless optimistic about Raleigh’s long-term outlook.

“Downtown is experiencing a great revitalization. There [is] over $2 billion worth of investment planned over the next couple of years,” Reimel said.

Reynolds said he expects the credit crunch to delay his project by about a year.

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  • davidgnews Mar 28, 2008

    Local government lets development run wild because they only care about how many more people they can squeeze in and TAX.

    Yes, lots of symapathy here - NOT !

  • bs101fly Mar 28, 2008

    what a shame, growth might slow???
    just a darn shame.
    I bet Meeker is having to take pills to handle the depression!

  • dianadarling Mar 28, 2008

    who wants a half million condo with one parking space downtown??

  • mep Mar 28, 2008

    Whoo hooo..... something that can actually SLOW DOWN WK growth.
    Pity the local govts would not do it.

  • davidgnews Mar 28, 2008

    Oh cry me a river. Boo hoo hoo.

    These developers have been getting a free ride on growth for so long from local government, it's nice that 'natural forces' will slow them down a little.

    Just go to another state and get over it.

  • thewayitis Mar 28, 2008

    If this is what it takes to slow the growth, I'm all for it.

  • IceCreamMan Mar 28, 2008

    The condo developers in downtown Raleigh REALLY screwed up by over-saturating the market too quickly. Enjoy the fall!!!