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Houston contractor withdraws from Southampton high-rise project

Growth and change can result in some degree of opposition, especially with new construction in older, more traditional neighborhoods. Real estate disputes that occur from residents or developers can affect how much a local area grows with the rest of the region. More often than not, real estate litigation can tie up a project for years and delay the introduction of new business, employment, and housing to the area.

The Ashby project, a 21-story tower including 228 high-end apartments and a restaurant, was expected to begin early this year. A 2010 lawsuit by its developers claims that the city had exceeded its authority by denying building permit applications. Houston's mayor helped the project's developers, Buckhead Investment Partners, and the city to settle the $40 million lawsuit by saying the city can't legally stop the high-rise project.

However, a new setback has delayed the construction. The general contractor, Linbeck Group LLC, cited technical issues in its decision to withdraw from the building project. Buckhead says it hopes to name a new contracting company soon, and the Ashby high-rise project is expected to continue as planned.

Although commercial real estate projects sometimes sour or stall, the above case shows that disagreements can often be settled or resolved to the general agreement of most people involved. I n older communities, new growth can be seen as a sign that the area is healthy and thriving. City planners, government officials, corporate attorneys, and local commercial real estate laws are meant to work together to introduce new growth in a way that doesn't detract from the charm and tradition of older neighborhoods.

Source: Houston Business Journal, "Linbeck Group pulls out of Ashby high-rise construction," Deon Daugherty, Mar. 21, 2013

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