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C List

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  1. https://www.wsj.com/articles/the-view-from-the-almost-top-11555600762?mod=hp_lead_pos11
  2. More information in the news on EB-5 -> With the amount of scrutiny on EB-5 I wouldn't be surprised if this project gets further delayed. https://www.bisnow.com/national/news/capital-markets/eb5-mastroianni-usif-brook-lenfest-doug-litowitz-defamation-lawsuit-chinese-97342?&utm_source=outbound_pub_68&utm_campaign=outbound_issue_772&utm_content=outbound_link_1&utm_medium=email And if you look here below you can find renderings for the Marlow, Hotel Allesandra, Kirby Collection, Arabella and more https://eb5projects.com/projects?utf8=✓&investment_type_id=-1&open=&verified=-1&state=Texas&name=&commit=Search&project_category_id=-1&regional_center_id=-1&size=-1&documents_available=-1&videos_available=-1
  3. To be completely honest, Midway does not own the property. They are the General Partner so they probably own 5% of the property and would not be putting up the majority of the capital for renovations, all they do is provide the vision and programming. It is up to the Limited Partner (Lionstone) to decide when and what actually gets funded. I know everyone likes to think designing, programming, and construction are the epicenters of buildings but I promise it is finance. I'm willing to bet that when the team got their hands on the property in 2012 and then sat through the downturn 2014, that the property needed a whole lot more money infused and that the returns weren't worth it. Sometimes you have to sit on a property and find the right time, sometimes you have to admit you got it wrong and sell. If it was easy to flip/build a property I'm sure you would be doing it yourself.
  4. TCR is a merchant builder, if the price is right they would sell as soon as the property is completed.....if not sooner
  5. You also need to understand how a project gets financed. The initial renderings are nothing more than marketing especially for a project like this. I'm almost 100% positive this is an EB-5 equity financed project, meaning the initial renderings are shown to thousands of wealthy Asian/African investors to draw them in. Under this program, the foreign national must invest $500,000 or $1 million in exchange for an expedited green card process, depending on where the project is located. So you are showing these renderings to nonprofessional real estate investors whose primary focus is not on their money but being allowed into the US. Now, this first phase is probably a 100-200-million-dollar project if not more, which means you have to find a LOT of foreign investors to put up money before a construction loan even becomes a possibility. Once the developer gets close to putting shovels in the ground he is 100% not going to build the marketing renderings; he has no incentive too. The great thing about EB-5 is the cost of equity is almost nothing, like a 2% return to the foreign investors with no definitive timeline on when that money will get returned. A developer like Hines or Hanover will have a cost of equity around 14-20%, a huge difference! So you over promise and under deliver, because if you can get anything built that looks halfway decent and leases up, you as the developer, will be swimming in money once you sell.
  6. I doubt this will be built anytime soon. As far as I know, DC partners almost exclusively use EB-5 financing for equity to build their projects. They still need financing for several other projects they have listed on their website.
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