Click Here

Raleigh Growth Hurt by Mortgage, Credit Crisis

Raleigh Development Hurt by Mortgage, Credit Crisis

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.



7 Comments


Golo

Welcome to GOLO, where WRAL.com visitors can comment on stories and create profile pages, blogs and photo galleries.

You must be a registered WRAL.com user to use these tools. Click here to register or log in.

View Comments View Comments

Photo Spotlight
0
1
2
3
4
5
[+] more photos | submit your photos
Report It
Send us your news photos, videos, tips and story ideas.
Submit Videos Submit Photos Submit Reports
  1. 2009christmasparade
    Bands, marchers in holiday parade

    Choose your group to watch their performance in the 2009 WRAL-TV Raleigh Christmas Parade.

  2. 2009christmasparade26
    Web only: Complete 2009 WRAL-TV Raleigh Christmas Parade

    Watch the parade in its entirety from the comfort of your computer any time.

  3. taxes
    Search for missing IRS refunds

    The Internal Revenue Service released the names this week of more than 100,000 taxpayers who have not received their 2009 income tax refund.

  4. County Unemployment Rates
    North Carolina unemployment rates

    View an interactive map with county unemployment numbers.

  5. Drought Map
    A year of N.C. Drought Maps

    View a time lapse animation of drought conditions during the last year.

Click Here