As far as I can tell, construction at the La Beach Towers has halted. Though cranes remain on the site, the orange scaffolding is blowing like flags up and down the site. Furthermore, over the last couple of weeks, I haven’t seen anyone working on the site. Another developer I spoke with said that it seems that the project has run out of funds.
The La Beach Towers development was an ambitious project to be comprised of three, 17 story condominium style properties located on seven acres beside the Atlantic Ocean on the Labadi Road (approximately 1 km west of the Labadi Beach Hotel).
In August 2011, the project began pre-selling units. Starting prices for four bedroom units were $579,500. (Keep in mind that is a cash price.)
I can only speculate what happened. Perhaps the rapidly depreciating cedi made building materials more expensive than anticipated; perhaps they didn’t have enough demand for the units at the price points they had forecasted; perhaps they ran into land title issues with local tribes. I hope that they did not plan to fund their development with pre-sales because all those early believers may never get their money back.
People are tempted to think that developers are making money hand over fist. I hope the developers at La Beach Towers can resume construction. Their experience demonstrates that there is plenty of risk in real estate development.