Bad timing put end to developer’s Atlanta project

All the elements were seemingly in place for Fred Astaire’s project, a condo complex on Memorial Drive east of downtown Atlanta to be called Cabbagetown Gateway.

Astaire and his two partners had obtained a loan to buy a nearly 1-acre tract that offered stunning views of the city’s skyline. By the middle of 2007, plans were drawn up, a building permit had been issued, and funding was obtained to ready the site for construction.

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Hyosub Shin/hshin@ajc.com

Fred Astaire planned to build a mixed-use condo project on Memorial Drive, but the graded site is now for sale because he and his partners could not get a loan.

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Workers graded the site, put in sewers and installed a foundation.

Then — nothing.

For months, the site has been quiet as Astaire and his partners sought in vain for a construction loan that would allow them to build a 23-unit complex with ground-level retail.

Their timing was awful. The local real estate market hit the skids, causing banks to rein in their lending — particularly for new condos in a city with a glut of units. Unable to get a loan, the group put the property up for sale about three months ago.

“It’s amazing how serious this little economic crunch is,” Astaire said.

The deal’s collapse dealt a big blow for Astaire, 45, a developer who has built single-family homes and strip shopping centers. To make ends meet, he’s doing odd jobs such as building decks and doing home repairs. “It’s not fun,” he said.

Astaire has been turned down by four banks as well as out-of-state loan brokers. He said money was available from private investors, but the interest rates they wanted were too high.

Astaire declined to talk about the size of a loan he’s seeking. Records with the city of Atlanta show he obtained a building permit valued at $2.5 million.

Despite the saga, Astaire has not soured on real estate development. He’s itching to get back in the game, once the economy turns. And he’s not bitter at any of the banks who have turned him down.

“It’s called speculative building for a reason,” he said. “Nothing is guaranteed.”