Smashing Estate

Another massive project is going to victim of the global recession very soon. It was the half-billion-dollar Ritz-Carlton hotel-condo project in downtown Vancouver. A 127-room lavishness Ritz-Carlton hotel was supposed to occupy the first 20 floors of the building, with condos taking up the top 40 floors. But now the project is officially dead. Purchasers who brought the luxury condos in the proposed 60-storey tower are getting letters informing them of the project’s cancellation recent week

Actually, the letter from attorneys representing developer Holborn Group states that “worldwide economic turmoil” has got a significant negative impact on the sale of units in the project, because it has with most other Metro Vancouver developments. The letter states “As a result, sales have not met the developer’s expectations,” “We hereby give you notice that the vendor cancels and terminates the contract due to the fact that the vendor has not entered into binding contracts of purchase and sale for at least 75 strata lots in the development.” “As a result of this termination, the contract is now at an end.”

Holborn had already sold around 62 of the 123 condos in the twisting tower designed by Vancouver architect Arthur Erickson. Officials said condo prices in the project (called The Residences at the Ritz-Carlton) ranged from $1.4-million to $28-million. On the other hand,Vancouver realtor Bob Rennie said the developer had the total right to cancel the project if fewer than 75 units were sold by the end of this month. Rennie marketed the project. He said “It was a tough decision for them because there were sales in place, but the 75-sale threshold was out there and they had to decide,” he said. “They’d need to see a lot of strength in the luxury market to proceed with a project like that now.”