What's happening with Skyhouse?

About a year ago, it was announced that Chicago-based Metropolitan Development Enterprises was planning to build a $67 million, 22-story condo tower right in the heart of the loft district at 14th and Washington. It is the largest new-construction residential building proposed for downtown.

The project was met with much fanfare, and the development had essentially everything you could ask for - a doorman, swimming pool, hot tub - even a dog run. Over the past several months, there have been all sorts of rumors - from the declaration that the project was dead to the simple explanation that they simply needed to pre-sell more units in order to secure financing for the project.

At present, the lot that housed Erlich Cleaners sits empty, and as of a week ago, the big sign and renderings had disappeared. The St. Louis Business Journal had an article in their February 29th edition that said The Skyhouse, along with The Arcade, and a new Westin across from Galleria were all up in the air. The article stated they are "still planning to build the high-rise, but Chief Executive Paul Hardej said sales have slowed in recent months, and the developer has pulled back on its marketing budget for the project." It goes on to say that 30 of the 166 planned units have sold, which doesn't meet the lender's requirement of 40% - which would equal 66 condos.

It can't be just me that finds it odd that when you need to pre-sell 36 more condos, you pull back marketing. Wouldn't it behoove the developer to ramp up marketing and get the remaining units sold so they can start construction? It also can't make people who have already purchased units there very happy. Surely news like that will cause some Buyers to jump ship, which will push their number down even further.

I think it's a great project, and I'd love to see it come to fruition, but something seems a little fishy...