According to an article in the Star-Telegram , two shopping, residential and office developments in the growing Alliance Corridor in far north Fort Worth are facing foreclosure, another casualty of the credit crisis.
The article said:
"Plans for the open-air development included 1.6 million square feet of retail, and medical and office space. Trophy completed engineering and environmental studies, had the land properly zoned and was ready to start construction a year ago when Scripps ran into financial trouble and shut off the project's loan, said Hollis Godfrey, Trophy's chief operating officer and general counsel. "It's unfortunate," Godfrey said Friday. "The economy has changed so dramatically. The money dried up going forward."
The commercial real estate developer is hoping to avert foreclosure by seeking additional investors, but the probability of finding one may be remote. The commercial real estate industry is facing unique circumstances as the foreclosure crisis which is strangling the residential real estate sector is now infecting commercial real estate AND lending for both the consumer and commercial sectors has contracted. Many developers are facing foreclosure as they fail to secure the financing they need to complete projects and/or refinance loans. Many of these companies have already filed bankruptcy, sending a shockwave of job losses nationwide. But if this commercial real estate foreclosure crisis worsens we could see many more bankruptcies and job losses disrupting the communities that rely heavily on the commercial real estate industry.