Atlanta developers and attorneys shared frustrating stories with a federal panel Wednesday, detailing the banking industry’s reluctance to finance new developments or refinance existing deals, AJC staffer Gertha Coffee reported.
“There is a complete drought in meeting the needs of new legitimate properties or refinancing existing loans,” Brian Olasov, managing director for Atlanta law firm McKenna, Long and Aldridge, told the federal panel meeting at Georgia Tech.
Atlanta developer Hal Barry lamented the difficulty of obtaining bank financing to build four government-leased buildings, Coffee reports.
“Finding a lender to finance these buildings has been a real joke,” Barry said.
His pointed words were directed at a panel overseeing the government’s Troubled Asset Relief Program (TARP). Under the TARP program, the U.S. Treasury Department has put more than $6.2 billion into Georgia banks.
The chairman of Barry Real Estate explained his difficulties in working with lender BB&T, which involved his attempt to avoid foreclosure on a downtown Atlanta property on which he intends to build an office tower.
“The recession hit us hard,” Barry said.
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