Tony Pappajohn and his family have been building apartment buildings in the city for more than 50 years. Jameson House, a 37-story business and $180 million residential tower on West Hastings St. in downtown Vancouver, was their most ambitious project.
"We liked the urban-ness of it," says Pappajohn. "Its downtown, not in a traditional residential area. And the heritage precinct. I thought I was very nice place to live."
And so did buyers. Of the 144 condos priced between $500,000 and $5.3 million, 105 pre-sold. Construction was moving along, until a few weeks ago.
"All indications were positive and we were called by our lead bank and told one of the three banks had decided not to proceed," says Pappajohn.
Market analyst Cameron muir expects new home development to drop by 22 per cent in Metro Vancouver. The math is simple -- too much supply and not enough demand. And banks are reluctant to lend.
"It's much more difficult for developers to get financing today," says Muir. "The developer/borrower will have to show more than being a long term customer. They have to have profits and sufficient amount of collateral themselves."
Pappajohn says he's looked for another lender with no success. This week, the project was postponed and workers sent home.
"They all have to bring home money to feed their families and I wasn't prepared," he says. "We weren't prepared as a company to go forward without certainly of having money to pay those bills."
He hopes to revive the project to honour those presale contracts somehow.
Pappajohn's company and his family depend on a turnaround to keep the building project alive. And so do the people who planned to call Jameson house home.
With a report from CTV British Columbia's Shannon Paterson
