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houston-development

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  1. the tower will be enclosed by the parking garage, though the top will be exposed. on paper, it should be difficult to notice, unless youre looking for it.
  2. sorry. rodney finger, who took over fingers after his father passed away. no timetable on an annoucement. hi travelguy and my pleasure
  3. farb didnt have any other option. he offered to move it, all expenses paid, but they declined. as a side note, the pool will not be on top of the garage. its now located on the ground floor and the area will be spruced up resort-like with cabanas, grills, etc.
  4. incorrect, rodney will be running the show. just waiting for the noncompete to expire, along with some other things...
  5. its going up fast because (1) his grandfather pretty much started davis bros and (2) HUD pops the GC for delays. put just those two together and its pretty much a top priority. the parking garage is for all 3 buildings and (or as of last time i saw the drawings) will be connected via skybridges. yes, unless they park on the street.
  6. link if they attempt to move forward on a conversion at those prices, in my honest opinion, it will be an inevitable failure. problem is, they significantly overpaid for the land. i underwrote the deal at $80k/unit and it barely made economic sense. i believe, but could be mistaken, they are in around $150k/unit. hypothetically speaking, if the previous owners put in $10k to $15k / unit, could have sold out the complex for $130k to $180k and made a great return. a couple of years ago, top end may have gone over $200k but now, not so much. so long story short: current owners overpaid, property is worth less than the debt (seriously doubt current cash flow comes close to covering nut), and their pricing structure is completely out of whack. i smell a potential distressed opportunity within the next year or two...
  7. so long story short, 221d4 loans are pretty much the only game in town. in previous years 9 out of 10 developers wouldnt touch the loan with their putz but with the credit markets frozen, there really are no other alternatives. developers that swore off d4 loans are now seriously considering them; though they will probably pass. on the plus side: no personal recourse, 40 year am, zero rent restrictions, and thats about it on the negative side: mip (which is comparable to the additional interest on a sub-prime loan), high reserves ($200 - $300 more / door), fighting over reimbursement of cap ex expenses, and a long and painful process to get the development loan closed. as for my own personal opinion for this development... his all in costs are relatively low, a carp load of units are coming on-line, and we have lost over 100k jobs. if i was in his shoes, i would sit on the dirt for a couple more years. its not a "prime" midtown location but in the next few/couple years, assuming mix and the super block eventually build out, it could become "prime" real estate. today, not so much. but thats just me.
  8. there are a couple of catches (red tape, escrow, budgets, etc) but im headed out to lunch. ill gladly elaborate on my thoughts later and others (ie niche) may chime in as well. there are some details that i cannot disclose but ill try my best to be as open as possible...
  9. no, thats not the case at all. the financing is via a hud 221d4 loan, which has ZERO restrictions. full market rents, full amenities, full everything. no one on the outside would know the difference... farb has rate locked and im 99% sure he moves forward.
  10. egos can make some people do very irrational things. well other than the usual suspects, keep in mind they reduced the number of units AND amount of retail, which kills the underwriting. deal didnt make economic sense before and it sure as heck doesnt now. but hey, its their money and lifestyle; put up 75%, full personal recourse, and go for it. i double.. no.. i triple dog dare ya!
  11. doesnt know whats going on here and is scared. someone hold me, please.

  12. while i have not read all of the posts regarding this upgrade, nor have i tested its functionality, nor anything else. my knee jerk reaction? looks like i picked the wrong week to stop dropping acid.
  13. just wanted to say i appreciate your sharing this project on the forum. even though residential is completely off my radar, still very cool pics and great insight. : thumbs up :
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