This month, Florida developer WCI announced that it had renegotiated an amendment to its revolver and term loan agreements to give it greater operating and financial flexibility in the lagging housing market.
"The company still has a rocky road ahead of it," Eric Landry, an analyst with Morningstar, wrote in a recent report.
The closure of the local sales office, except by appointment, is not surprising given the housing market, some say.
"It's an example right in our own community of the impact of the housing slump," said Del. Elizabeth Bobo, whose legislative district includes Town Center, where the tower is planned. "What I hear from people in the industry and related industries is that it's hitting the high-end market as hard as any others. It's a major local example of what's happening across the country."
Land for the tower project was acquired by the Rouse Co., which then was purchased by General Growth Properties Inc. That connection, the proximity to planned downtown development and WCI's financial struggles have fueled speculation that WCI and General Growth might make a deal in connection with the property. Some opponents of the project have asked that GGP buy the property back. But there is no evidence to support that such a deal is in the works.
"That transaction was between the Rouse Co. and WCI, and we really have no role in this issue," said Gregory F. Hamm, regional vice president and general manager of Columbia for General Growth Properties. "They lease space in our building, and we wish them the best. It's a very tough housing market."
june.arney@baltsun.com
