Peter Jobson of Excel Realty missed his September option payment on the building and hasn't returned e-mails and phone calls from the Rieger's owner, Greg Spatz.
Because of that, Spatz sent Jobson a letter this week terminating Jobson's option on the downtown property.
"My buyer is not moving forward with the Rieger," Spatz wrote, in an e-mail to the Register.
Jobson became the property's developer in June, hoping to turn the former downtown hotel into apartments for residents ages 55 and older.
But as the deadline approached for Jobson to turn in his application for senior housing tax credits, Spatz and project architect Jonathan Sandvick became worried after they hadn't heard much from Jobson.
Then, Jobson missed his payment.
Although it seems like a setback for the former downtown hotel, Sandvick tried to put a positive spin on the change in course.
"Now we know the score," Sandvick said. "Hitherto, we haven't been able to do anything with the building because it was committed (to Jobson). Now that it's played out, we can bring somebody else on."