Ritz Residences await pricing while Post takes a loss

By Michelle E. Shaw

The Atlanta Journal-Constitution

The posh Ritz Carlton Residences continue to hang in limbo as the developer and lender negotiate unit pricing, Post Properties executives said during a fourth quarter conference call Tuesday.

Post ended 2009 with a net loss of $10.9 million and a loss per share of 24 cents, compared with a net loss of $16.3 million and a loss per share of 37 cents in 2008.

The results were “consistent with expectations,” said Post chief executive Dave Stockert.

Atlanta’s housing market woes are a big part of the problem plaguing the condo project, which combines condo living with upscale hotel services, Stockert told investors.

“The market pricing is less than the original agreed to release prices,” he said during the call. “So that affects how the loan works, guarantees and other things.”

Stockert said condo pricing is “roughly 55 to 60 percent of what expectations would have been two or three years ago.”

There are no pending contracts on any of the condos -- and Stockert doesn’t expect there to be -- until the pricing issue is resolved. This is the second consecutive quarter Post has indicated it is “in conversation” with the lender about pricing the units.

There is no concrete time line for a resolution of the pricing issues, but the company is “working on it as expeditiously as possible,” Stockert said.