Pan Am sale called off

August 27, 2007
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Pan Am PlazaA Texas company has terminated its contract to buy Pan Am Plaza because of turmoil in the credit markets. Principle Equity Management had hoped to build a $50 million restaurant and retail development after acquiring the office buildings and ice rinks from California-based Coastal Partners LLC. But a lender scaled back its commitment two days before Principle planned to close. The deal is the first sign that fallout from the subprime mortgage mess could take a toll on commercial transactions in Indy. The full IBJ story is here. In an undated letter sent last week to tenants of the Pan Am office building, Coastal CEO Brett Baumgarten says the company does not intend to offer the building for sale "at this time."
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  • NickAugust 27, 2007 8:16 AM
    This saddens me a bit because I thought this would be a pretty interesting (if not very imaginative) addition to downtown.

    I am sure someone will snap it up for something.

    Maybe IKEA? (joking!)
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  • thundermuttAugust 27, 2007 8:46 AM
    Didn't we have a discussion about credit drying up a couple of weeks ago? This is just the first domino to fall. Wonder which one of the highly-leveraged hotel-condo deals will be next?
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  • cityfanAugust 27, 2007 9:05 AM
    The article was pretty positive and brought up some good points. It will definately weed out the projects that shouldn't be built, at least not at this time. The more important projects like JW and perhaps even the MSA site, won't be affected. The article didn't mention Penn Centre but I have a feeling it won't be affected either; everything I've heard suggests the funding for the project is pretty secure.
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  • CoryWAugust 27, 2007 9:35 AM
    This isn't good news. I loved teh concwept behind this and I hope that some other developer, with deep pockets, is able to pick up and go forward. This would have been a major addition to downtown and fits in withy the overall development vision of the area.
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  • rush4everAugust 28, 2007 1:55 PM
    Not a big deal, and it weeds out the marginal projects. There is something worse than this project and others not being built. Them being built and not succeeding. Failed projects will hurt us more than projects not starting. Plus it gives a chance for an even better project on this site. I was all for the Intercontinental, but someone needs to get their ducks in a row.
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