In reaction to the sudden economic downturn, Retail Properties of America, Inc., has decided to halt vertical construction plans at its Carillon project, which resides in Maryland between Baltimore and Washington, D.C.
CEO Steven Grimes said conditions influenced the company to focus on maintaining its profitable balance sheet and delay costly expansion.
"While we currently expect to finish sitework preparation this year, we remain aware of the significant demand for the project, which benefits from the medical office needs of the adjacent University of Maryland Capital Region Medical Center, a non-cyclical, shadow anchor of this project,” Grimes said.
RPAI’s redevelopment of the property formerly known as The Boulevard at Capital Centre aims to make it a central gathering spot in Prince George County with residential, office, medical, and restaurants and entertainment as well as retail space.
The company bolstered its financial flexibility with the project by drawing $100 million on its existing $850 million unsecured revolving line of credit. RPAI stated that it would continue to evaluate the potential resumption date for vertical construction at Carillon and will maintain optionality for either the monetization or build-out of components of the project.