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Tuesday, December 30, 2008 | 11:28am

Jay-Z Takes a Hit From the Housing Crisis

Posted by Juan

Struggling Housing Market indirectly forces Hov to put his “J Hotel” project on hold

It appears that the struggling Housing market has struck yet another victim. The one and only Jay-Z. Shocked? Allow me to explain. If you’ve been following Mr. Carter’s recent business moves last year he announced his intentions to launch a chain of boutique J Hotels. However the project has been put on hold until further notice, according to a New York Times report. Real estate mogul and Jay-Z’s ATM machine for the venture, Charles Blaichman, cannot secure the necessary $370 million in financing to erect the J Hotel and two concurrent projects.

“That rug has been pulled out from under their feet,” said David Johnson, a real estate broker with Eastern Consolidated who was involved with selling the site for the proposed hotel to Mr. Blaichman, Jay-Z and their business partners for $66 million, which included the property and adjoining air rights. Mr. Johnson said that because many banks are not lending, the only option for many developers is to take on debt from less traditional lenders like foreign investors or private equity firms that charge interest rates as high as 20 percent.

20 Percent? Ouch! Jay has clearly learned from the best never use your own money to build your wealth. Sounds very simple but a lesson many who desire real wealth seem to never learn. Had he invested his own bread this could have been disasterous but now its just disappointing. Something tells me Jay will be ok. At least he’s not losing his crib.

Via: NY Times via Corporate Takeover

FILED IN Business & Marketing, Music