Sell first and then build is the most prudent approach to home building from both the developer's and construction lender's standpoint.

Goldman Sachs and Iberiabank have become the primary construction lenders for the redevelopment project.

After the job specifications are established, city reviewers should be out of the picture and the construction lender should supervise.

However, not many construction lenders are ready to accept the risks themselves.

They were also under pressure from First Boston to find a construction lender or give back the property.

Atlantic Bank of New York is the construction lender.

And as the construction lender, a bank often is willing to offer better mortgage terms to buyers than those offered by outside competitors.

"The construction lender is, in a way, your partner, because they have written the building loan," she said.

Chase Manhattan Bank is the lead construction lender for the project.

Work began in 1988, paid for by KG Land with the understanding that a construction lender would complete the financing.