Holding up funds for construction

From the November issue: A growing number of developers with projects under way in Manhattan, who are already reeling from declining real estate values and high construction costs, are being confronted by lenders who are either unwilling or unable to continue funding, according to real estate experts. The Lehman Brothers bankruptcy, which was filed in mid-September, has — not surprisingly — put several construction projects in the city on hold. But other lenders are also putting pressure on developers to provide more equity in projects as a way to improve the financial profile of their struggling banks, real estate attorneys said.