It can go alot of ways in this case.  I don't think sale of "construction in progress" comes up much with the IRS unless it is manufacturing.  Intent was definately rental so I can agree with taxshack that the 8825 is a great option.  You would get writeoff, although passive for the mortgage/organize expense.

However, I think you answer your own question with the statement "organization expenses and mortgage costs that I was capitalizing during the construction."  If you were capitalizing them then they are a capital asset and part of sale.  But again I don't think the IRS is clear on whether these are ordinary expenses only because we did not finish building.