Foreclosure of Senior Housing Projects: Futile To Keep the Pressure On Developers?

Will lenders look at senior housing projects that have only sold half of their inventory thus far half empty or half full in 2009? Crain’s Chicago Business ran an article about foreclosure proceedings on a north shore senior housing project that had sold approximately half its inventory. The article outlined the history of the project and the process that the developer’s followed to bring the project to market and the market area of the project definitely at the high end of the consumer market and matches the surrounding community’s demographics. The lender is looking to foreclose on the property but is this a smart tactic in today’s environment? Banks are not in the business of owning and managing real estate, let alone senior housing projects. Or is the bank keeping the pressure on the developers to move the inventory?

For the full article in Crain’s, click here.