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houston-development

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Everything posted by houston-development

  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 :
  14. crud, i did miss it. sorry niche but glad to hear y'all had a good time. please feel free to send me an email next time, especially since i dont frequent these boards on a daily basis.
  15. pfht! thats not important right now. what is important, on the other hand, is all of the excitement and buzz this is generating. always trying to buzz kill with this technicality stuff. give me a napkin and some steel; ill build and design this sucker myself.
  16. it's called "renegging" or "retrading" and unfortunately, happens all of the time in our industry. theres usually either a loophole or not worth the legal fees / headache / etc forcing a party to their obligations. with the exception of hud 221(d)4, 99.99% of all development deals today include recourse. borlenghi will sell at the right price. unfortunately for him, i dont foresee anyone buying it.
  17. for a little background, mandola got a really good deal when he purchased the property, even worked out of the back offices. when interfin offered terms where mandola could continue operating with free rent, figured it was too good to be true. which in hindsight, unfortunately, was the case. interfin reneged, demoed the site, and now here we are.
  18. problem is, there really isn't a "fair" price because of the current lending environment and the huge gap between bid/ask. heck, mandola didnt want to sell but was made an offer they couldnt refuse. interfin overpaid and is now stuck holding the bag. total hypothetical... say a STRONG buyer wanted to move forward. to get a loan, they probably put down 40% equity of what the bank values the deal at (probably 25%+ less than what it would have been a year ago). top that off with personal guarantee on the outstanding loan. probably need to JV and use the land as collateral. if i were to guess, think a bank would put a value of $50 psf on the dirt today.
  19. the transwestern sign is new. been up for maybe a month or two..
  20. good luck trying to sell that site. 1) they paid $95 psf pretty much at the market peak 2) the site is only suitable for a vertical development, especially because of the size and that price
  21. completely agree. sometimes two people can have the same conversation but when asked about it, you get two totally different stories... personally, i dont know lynn but would assume/hope her intentions are for the best and i do not doubt that you are only passing along information you heard from her. regardless, ill contact matt and see what the deal is. if its appropriate, ill gladly pass along details.
  22. if lynne (sp?) really wanted to discuss salvage with matt, has she tried to call, email, or even go to his office? also, who knows if she really is attempting to contact him. for all we know, its nothing more than watercooler gossip. matt really is a nice guy and its unfortunate that hes been stereotyped as an evil developer. that isnt the case for those who know him personally.
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