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Kurt Wittek is experiencing first-hand the problems besieging the Westchester and Fairfield County real estate markets. For the 30-year-old Norwalk, Conn.-based developer, the future is as unclear as the present is complicated.
Struggling with a stagnant residential real estate market and burdened by costs associated with several unsuccessful developments, Wittek is searching for ways to pay off bank and construction-related debts on a number of properties.
At this point, Wittek is attempting to market the remaining vacant units of the yet-to-be completed R&G Corset Factory complex, a 78-unit luxury condominium development in South Norwalk a block from the city's $30 million Maritime Center. The project, which entails extensive renovations to the 100-year-old factory, has a sellout value of $15 million.
One phase of the three-stage development has been completed, but only five of the 25 units have been sold, said Wittek.
Marketing the condos under current market conditions is even more difficult because construction is only partially finished and there are no guarantees of when the work will be completed.
"It's really difficult to sell confidence in today's market," Wittek said. "I think people are very nervous . . . the buying public is a scared animal. Somehow we've got to get that confidence level back. I don't think anyone has come up with a solution (yet)."
According to Wittek, the project was financed through the Rhode Island Hospital Trust Co. of Providence with a $11.5 million loan. He said the bank remains cooperative -- for now.
"If a bank wants to default you on a loan, they are going to default you," he said.
Bank officials last week said they were not prepared to discuss the arrangements they have made with Wittek.
Condominium sales at the factory complex originally were handled by Wini Mola Realtors of Norwalk.
"Wini did a good job for us," Wittek said, "We just wanted in-house control."
Mola declined to comment on the dismissal of her agency earlier this fall.
Although the corset factory project remains bogged down, Wittek was successful in marketing another development in South Norwalk at 83 and 85 Washington St. The $5 million project,...