It is going to be a bumpy ride.
Disney to wait it out until economy improves. Also hitting the construction skids are Kapalua Resort, Moana Vist, 1723 Kalakaua and Trumps Baja Mexico Resort.
Disney's Ko Olina Resort:
Just confirmed through two sources, but has not made the news yet. Disney is putting construction on hold of their Ko Olina Resort until the economy stabilizes. One source said that Disney does not feel they can sell their suites at projected market rate. This is the third project on Oahu to his the skids on construction. Moana Vista and 1723 Kalakaua are also being affected by the recession.
Kapalua Resort:
More recently, the company's development of the 146-unit Ritz-Carlton Club and Residences was affected by lender Lehman's failure to deliver more than $50 million in necessary funding.
The project - a partnership between MLP, Marriott International and former America Online co-founder Steve Case's Exclusive Resorts LLC - is 83 percent complete and more than $200 million of the project's $370 million in financing has already been funded.
But MLP and Marriott had to provide an emergency bridge loan due to the lending shortfall.
The partners also are looking to refinance the Lehman debt with new lenders.
Trump Ocean Resort:
The developers of the Trump Ocean Resort in Baja have lost their financing for the project, and it's unlikely a new lender will be secured until the economy halts its downhill slide. San Diego news article printed that lawsuits are being lined up against the developer.
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