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Credit crunch could prove a boon to commercial sector

Shall no good deal go unfinanced?

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Jan-20-08, 07:00 PM
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The shrinking credit market could be more of a boon to established commercial developers rather than a bust for their projects, according to top officials at some of the major development companies in the region.

 

Robert P. Weisz, head of RPW Group Inc. in Rye Brook, N.Y., one of the largest commercial developers in Fairfield County and Westchester County, focused in 2007 on repositioning his properties at 1133 Westchester Ave. in White Plains, the 625,000-square-foot former headquarters of IBM Corp. for which he paid $76 million in 2006, and 440 Mamaroneck Ave.

 

in Harrison. Weisz’s plan to build a 160-room extended-stay hotel on his 74-acre property at 1133 Westchester has been approved by White Plains city officials and the developer said he hopes to start construction late this year after securing a hotel operator.

 

The developer recently estimated the hotel’s cost at $25 million to $30 million. Construction should not be affected by the current credit crunch, he said.

 

“It does not affect any current projects but it will affect the market in general for future acquisitions,” he said last week. “Acquisitions become a little more cumbersome because the credit is tighter.”

 


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