From what I was hearing from my network with construction costs, delays, dealing with the City, etc, I lost my appetite for such a project.

I think the answer would depend on your net worth and appetite for liability.I hold my SFRs in my personal name, and used LLCs for a 40-unit and 98-unit.

That real whets the appetite for more.

Figure out your own appetite for risk.

Depending on your appetite for risk and need for return, will drive your decision.  

Landlords serve as convenient foils for all of those in the business of suppressing rights. 

I remember hearing 'we simply have no appetite to lend at this time' more than once. 

When it comes to the actual purchase, you might be able to {gradually} purchase shares of the business (depending on how it is set up and the appetite of the owners) rather than an all out purchase.  

The thorough investor has an appetite for both, and in most cases, will use leverage to diversify across these two strategies.

I would definitely start working with other banks just in case your current bank's appetite changes.