Major condo project grinds to halt

Work on a major condo development in Kelowna has come to a halt and the experts suggest it may be a sign of things to come.

Some workers at Lucaya, a 21-storey condo tower on Sunset Drive near Prospera Place, received their pink slips this week.

CHBC broke the story Wednesday. It reports that the Alberta developer has spent $17 million on the project so far, and suggests the work stoppage is due to the fact that banks are no longer willing to finance Okanagan construction projects.

The developer could not be reached for comment. Lucaya's official website is no longer active.

An investment company, Platinum Equities, advertises the Lucaya project as being located within two blocks of Okanagan Lake and a short walk from downtown Kelowna. The company also states on its web site that the, "demand for this type of real estate is currently at an all-time high, meaning the units can be sold at a premium which translates to a lucrative return for investors."

Platinum Equities adds that investors can expect to see a return within two years.

The Lucaya was scheduled to be completed by 2010 and one-third of the units have reportedly been sold. The project's sales office at Prospera Place remains open.

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