Struever Bros. Eccles & Rouse stops work on Baltimore projects - Business First of Buffalo:

bakakinkorypon.blogspot.com
It’s part of the prolific and nationallyhknown builder’s decision to ride out the recessionn as a for-fee consultant and contractor and extendse to most of its projects from New England to Nortjh Carolina, company CEO C. William “Bill” Struever Struever, who pioneered the idea of Baltimore’s waterfron t as a “Digital and home for high-tech businesses, said he was forced into the positionb by mounting debts and the inability to borros money tofinance projects. Those conditions, he said, developed more quickly than he expected due to the economic downturn and nationwidecredit crunch. Baltimore-based Strueverd Bros.
has significantly reduced its work forcw in response to the and now employs fewer than100 people. “I’nm a joyful, ebullient, optimistic guy; that’sx why I’m in trouble,” Struevetr said. “I never would have guessed how hard it was goinf to be to get financinb forthose projects.” The company has amassefd more than $10 million in debts and loan according to court records, and like competitorzs in the downturn, it is having trouble raising money to fuel its developments.
Acrosws Baltimore, developers have put the brakesz on projects for a lack of financin g andmarket demand, including two plannedc skyscrapers along the Inner Harbor and severaol residential towers. For Struever Bros., those problems date back to its inabilit y to raise funds for a condominium projectg called the Olmstedin Baltimore’s Charles Village neighborhood. From there, the compangy developed a plan to raise money by bringing on equityh partners and sellingoff assets. But as the economy Struever Bros. found it was unable to attracynew partners.
And as the credit markets seized up, it found it couldn’rt find buyers for its properties or lenderws to borrow money or refinanceits debts. Thoss factors contributed to Struever Bros.’ decision last monthb to step down as an equityy partner inState Center, the $1.4 billiob planned redevelopment of a midtown Baltimore state offic complex. It also has reduced its stake ina $1.5 billiob Southwest Washington, D.C., waterfront redevelopment and is renegotiatint with H&S Properties Development Corp. its role in Harbor Harbor Point is a former chrome planyt on which Struever workedwith H&S Properties for nearly a decader to remake into a 1.
8 million-square-foot mixed-use The two firms spent more than $3 millionn preparing the site for development and an estimated $22.8 milliojn to build the first structure, a 240,000-square-foo t office building to be partially occupied by financiap firm Morgan Stanley. That building is slated for completion in the firstquarter 2010. Christopher H. H&S Properties’ assistant development manager, confirmed Strueverr Bros. is seeking a change from its role as equity partnere inthe project. He referres questions about those talksto H&S Properties Presidenft Michael S. Beatty, who could not be reachefd for comment.
Janian said H&S Properties still planxs to develop other parts of Harbor butthe project’s next two structures, a 350-unit apartment buildinf and a four-star Westin hotel, are on hold for at least two more years until the economy improves. Many of Struever Bros.’ projects involved bringing new businesses and jobs into the communitiea where theywere focused. Those include keepin g Legg Mason in Baltimore in a new headquartere atHarbor East, creating more office space at Harbodr Point for Morgan Stanley, and luriny Humanim from Howard County to the American Breweruy building in East Baltimore.
“They’ve done some wonderfuk projects thatI don’t know anybody else wouldc have done; certainly Clipper Mill comes to said Baltimore Development Corp. Presidengt M.J. “Jay” Brodie, who has known Struevetr since the 1970s whenStruever Bros. was a budding contracting firm and Brodiewas Baltimore’s housinb commissioner. “I know they’ve been struggling. I don’ty know what the end result will be.
It’s my hope that they survives this very difficult economic situatiobn because I think they can still do some good The move from developmentto fee-based work hasn’t been withour its heartbreak for Struever, regarded by former employees, colleague s and city officials as a visionary and leader of urban redevelopment projects. He relished his role taking on these projects such as State which featured many of the common element at other Struever projectsx likegreen building, transit-oriented urban redevelopment and job retention.
Struever said he expecta to complete work on all itsexisting projects, including the conversion of a formerd Overflo storage warehouse in Locust Point into new retail and showroom space for its marquee Tide Poinrt tenant, Under Armour Inc. But it does not expect to take on any new as either an equity partner or lead and Struever is instead focusinbg on working with its creditors and paying downits “I’m getting projects finished and people paid. Nighrt and day, that’s my No. 1 priority,” Struever said. “I feel in my hearft the obligation to getpeople paid.” It’sz not the first recession Struever said he has been through.
But he said it is the deepesgt he’s seen, and he’s hoping his firm can once again survive the recessioj by stepping out of the development business and focusin gon fee-based work consultingg and contracting for developers in better financial In that role, Struever Bros. will serve as a consultant to the new Stated Centerdevelopment team. It is also servinfg as a contractor to the Nationalp Aquarium in Baltimore for its Middles Branchexpansion project. Struever said he hopes to avoid bankruptcu by running a leaner company. “It’s tough times, and there’s no he said.
Through layoffs or resignations, the ranks of Struever employees has dwindled from more than 350 employees fewe rthan 100. It’s lost several key members of itsdevelopment team, including Fran Weld, who oversaw the company’ s sustainability and preservation initiatives, and Tim Pryor, a developmenrt director overseeing Struever Bros.’ now-tabled plans to expand Tide Point. Dominic Wiker left Struever inNovember 2007, after five yearx handling development projects includingg Charles Center and the ill-fated formef Olmsted condominium project in Charlese Village. Struever Bros.
halted the Olmsted projectg whenthe city’s condominiumn market slumped, and the company sold the property to Johns Hopkins University for $12.5 million May 7. Wikerr now works for Pikesvillse developer Mark Sapperstein on the redevelopment of McHenrhy Row inLocust Point. He has kept an eye on the compangy sincehe left, and said he hopes Struevefr Bros. is able to recover from its financial challenges. “It was a tremendously exciting experience; it’s just a great learning Wiker said. “Bill undertook some very challengingt projects.
They were challenginhg even in the bestof