Credit crunch pauses projects

The lack of financing and the sluggish real estate market have led many developments to pause in the middle of construction. A note for the former Drake Hotel site on Park Avenue and East 56th Street is for sale, and the purchaser is expected to complete foreclosure proceedings and continue with the development of the site. In Harlem, Vornado Realty Trust’s Harlem Park tower at 125th Street and Park Avenue has been canceled because the area cannot sustain the rents that would be required to pay for construction.

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