A late-breaking update on the Park Fifth rumors: The project is going ahead, amid some internal restructuring that has the company looking for investors/financing. A handful of sales staff were laid off this October and some buyers have canceled their reservations, "mostly due to uncertainty and rumors about the future of the project," according to our source. Asked about the layoffs and canceled reservations, a spokeswoman for Park Fifth emailed us the following statement on Friday night: "Park Fifth's partners remain Africa Israel, Namco Capital Group, Inc and Houk Development Company -- as they have always been. Park Fifth maintains an active sales and marketing team. Park Fifth resized its staff in preparation for its move into its sales center, which will take place on Monday, November 5. Park Fifth's investors are very encouraged with the 348 reservations to date. They anticipate this sales momentum will continue as people begin to visit the sales center." AND AN ADD: A Q and A press release was sent to Curbed and other blogs/media outlets on Friday refuting rumors of trouble, but given that it didn't directly address the information we'd been hearing from multiple sources, we asked Park Fifth for an updated, more detailed response, which they were nice enough to send and which we posted above. In the interest of providing more information to those interested in the project, and letting Park Fifth speak more fully for themselves, the full Q and A they sent out is after the jump. Read on!
Q&A with Rich Marr Regarding Status of Park Fifth
Q: What is the status of Park Fifth?
A: Park Fifth is progressing on schedule. Over the last few months, we have seen significant progress in the development of Park Fifth. We have achieved major milestones in the areas of permitting, pre-construction planning and sales center development. Tremendous excitement and momentum have been created for Park Fifth, resulting in 348 reservations to date - even before we open our sales center.
As we enter real estate’s traditionally quiet fourth quarter, we have begun a short phase where we are restructuring internal operations in order to move forward in an effective manner and continue to progress on target. This internal restructuring will better poise us as we move forward into the construction phase. We will continue to focus on securing all necessary permits and approvals and completing the EIR process.
The design of the project, groundbreaking and completion will not be affected by the restructuring. Groundbreaking is still scheduled for the first half of 2008 and completion of the first tower is set for 2010.
Q: Is it true that Park Fifth lost its main investor?
A: No, Park Fifth’s main investors remain involved in the project and are currently focused on securing finals permits and completing the EIR process.
Q: Is Park Fifth looking for new investors?
A: Internal restructuring could include the addition of a new investor or a potential change of ownership, but this would not affect the design or timing of the project.
Q: Will the internal restructuring affect the timing of the project?
A: No, Park Fifth is progressing on schedule. Completion of the first tower is set for 2010, while the second tower will be completed in 2011. Our process of internal restructuring will not affect our progress or timing of the project.
Q: Are you still accepting new reservations?
A: Yes, Park Fifth is accepting new reservations.
Q: Will the Sales Center still open?
A: Yes, the Sales Center will be complete within the next few weeks. We are putting the final touches on what will be a truly spectacular representation of what living at Park Fifth will be like. The Sales Center will include two complete model homes, virtual tours of both towers and many interactive features to help prospective buyers visualize the home they are interested in purchasing.
Q: What is the status of Park Fifth’s sales team?
A: The Park Fifth sales and marketing team remains active and in place. The team will complete its move into the Sales Center by mid-November and will begin offering tours shortly after that. The team can be reached at 213-629-0000 or via email at angus@parkfifth.com.
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