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Australian Developer Planning Five High-Rises for Midtown

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5 hours ago, UtterlyUrban said:

Didn’t the developer originally say that we was going to use his own money?  I guess he decided to use OPM?

 

thats not what that means.

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sorry hit send to quickly. there are two components of any RE deal (or a lot of other investments really) - equity and debt. equity will come from you and/or your investors and the debt will be provided (typically) by a bank. in this case, caydon is providing all the equity needed to secure a construction loan from the bank (or other financing instrument) without having to seek outside investors. equity requirements vary from bank to bank but they usually require something like 25-35% down of the total project costs. what caydon didn't have to do was drum up investors (institutional groups like insurance companies, private equity, private investors, etc.) to help secure financing which can be a big hurdle in a market like Houston.

 

few would self-fund an entire project - it ties up too much of ones own capital when there's relatively cheap access to money readily available. of course he takes on a lot more risk but the reward is all his as well.

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5 hours ago, swtsig said:

sorry hit send to quickly. there are two components of any RE deal (or a lot of other investments really) - equity and debt. equity will come from you and/or your investors and the debt will be provided (typically) by a bank. in this case, caydon is providing all the equity needed to secure a construction loan from the bank (or other financing instrument) without having to seek outside investors. equity requirements vary from bank to bank but they usually require something like 25-35% down of the total project costs. what caydon didn't have to do was drum up investors (institutional groups like insurance companies, private equity, private investors, etc.) to help secure financing which can be a big hurdle in a market like Houston.

 

few would self-fund an entire project - it ties up too much of ones own capital when there's relatively cheap access to money readily available. of course he takes on a lot more risk but the reward is all his as well.

From the article:

 

“HFF helped secure debt and equity financing through Bank of the Ozarks and Invesco Real Estate. The HFF included senior managing director Matthew Kafka and analyst Dustin Selzer.”

 

equity and debt “financing”?

 

it sounds to me like the equity was syndicated?

 

 

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4 hours ago, UtterlyUrban said:

From the article:

 

“HFF helped secure debt and equity financing through Bank of the Ozarks and Invesco Real Estate. The HFF included senior managing director Matthew Kafka and analyst Dustin Selzer.”

 

equity and debt “financing”?

 

it sounds to me like the equity was syndicated?

 

 

 

maybe next time i'll read the article haha... he definitely didn't pony up like he originally said and ended up going the institutional route. not that it should make a huge difference as this is the way most deals make. but still, not quite the confidence he initially had and probably more likely that costs will be reined in more than anticipated.

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Or, maybe, he's expanded his plans. When it was first floated he wouldn't need financing, it was just one tower. He's since made more land purchases for future development.  

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10 hours ago, KinkaidAlum said:

Or, maybe, he's expanded his plans. When it was first floated he wouldn't need financing, it was just one tower. He's since made more land purchases for future development.  

 

I think that is a great point. Obviously we are used to projects being scaled back, but he has tripled the overall scope of the project from the first look. I think It would be much more difficult to back the entire thing at this scale as he said for 1 tower.

 

Seems like Caydon has been pretty good on their word without significant delays. In Houston, these hot areas seem to create momentum. I think 3 towers plus the parks should be a huge boost to their overall likelihood of success. Now... can we get 3300 Main going as well? They seemed to be here first but still no construction from them. I think they could also benefit from this 'momentum'. In my eyes, this creates a strong center for midtown, moving it away from Gray / Bagby.

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This way the pool will have downtown views.  That was probably deemed more important than making sure that it had the best sun in the afternoon

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If there was a "post of the year" award, I'd nominate Naviguessor.  Epic.

 

"In Australia i guess it would makes sense to put the pool on the north side of the building. "

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My 2 story condo complex loses the sun at the pool in mid September. This place might get 3 months of sun on their pool from May-July.

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On 11/7/2017 at 5:18 PM, UtterlyUrban said:

From the article:

 

“HFF helped secure debt and equity financing through Bank of the Ozarks and Invesco Real Estate. The HFF included senior managing director Matthew Kafka and analyst Dustin Selzer.”

 

equity and debt “financing”?

 

it sounds to me like the equity was syndicated?

 

 

 

On 11/7/2017 at 9:34 PM, swtsig said:

 

maybe next time i'll read the article haha... he definitely didn't pony up like he originally said and ended up going the institutional route. not that it should make a huge difference as this is the way most deals make. but still, not quite the confidence he initially had and probably more likely that costs will be reined in more than anticipated.

 

On 11/7/2017 at 11:03 PM, KinkaidAlum said:

Or, maybe, he's expanded his plans. When it was first floated he wouldn't need financing, it was just one tower. He's since made more land purchases for future development.  

 

There is also this possibility to consider:  The quote is from the chronicle, so there is the distinct possibility the information is just wrong.

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17 minutes ago, Houston19514 said:

 

 

 

There is also this possibility to consider:  The quote is from the chronicle, so there is the distinct possibility the information is just wrong.

 

Most of the article sounds like it came from a press release (pretty standard for the Chronicle), so the quote was probably more or less verbatim from the press release. This would also explain why Bizjournals ran virtually the same article simultaneously.

 

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Between McGowan and Alabama is still dead even with many improvements around Elgin.

These new residentials should help with pedestrian activity, restaurants and retail

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Take note that this project will transform Midtown, 10-15 years from now we will look back as this being the highrise that connected TMC and DT skylines

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I agree. 

They should rename the tower "Pioneer".

 

The scale of the project is also massive. 

 

They really squandered the super block. That huge setback on McGowen...

 

This project is two and a half blocks plus Drew.

Are they also going to make use if Dennis? Both Drew and Dennis are only two blocks long.

 

Who owns that big grass lot on Fannin and Drew  in front of that big mural? A garden/cafe would be awesome right there

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I quite like that Caydon follows the ceremonial groundbreaking with actual excavators a few hours later. Nice to see some heavy digging on site.

 

I wonder if the name “The Midtown” will eventually be given to the entire site, given that the first tower has been rebranded with its address and two others are in the planning stages.

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Somewhat confused on this one.  The sign on the corner of the fenced lot says Nouveau Antique Bar.  Also looks like they're doing remodeling on this building(maybe a temp office during construction).

d8Ro06m.jpg

Tyke4Pt.jpg

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Yes, the little building is becoming the construction office.  The Nouveau Antique Bar is a separate building on the other side of the block.  The sign is for parking, I believe.    

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17 hours ago, hindesky said:

They are shoring up the sides of the dig, doesn't appear that there is  going to be much underground, I assume podium parking.

PB9j08v.jpg

They'd be dumb to not take advantage of the added activity at street level. Hopefully they don't wall themselves off with parking at ground level.

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23 hours ago, hindesky said:

They are shoring up the sides of the dig, doesn't appear that there is  going to be much underground, I assume podium parking.

 

 

The way that part of Midtown floods, underground parking would be A Very Bad Idea - at least until the storm drainage system catches up.

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Based on the renderings, I assume it will be like Catalyst:  podium parking garage wrapped in apparements/retail to make the podium all but invisible.  Smart design! 

 

EDIT: Renderings removed at the demand of Large arts in Collingwood, Australia.  —Editor

 

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12 hours ago, Twinsanity02 said:

Does anyone know the height of this building? Cannot find it on Emporis.

 

328' ft

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There was a massive mobile crane in this general area on Monday or Tuesday. I walked by this site on Wednesday and didn't see any obvious signs of why they would need it. Also, I believe the tower crane at the Camden complex was removed some time ago. Anyone have info or ideas?

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On 12/1/2017 at 9:23 AM, phillip_white said:

There was a massive mobile crane in this general area on Monday or Tuesday. I walked by this site on Wednesday and didn't see any obvious signs of why they would need it. Also, I believe the tower crane at the Camden complex was removed some time ago. Anyone have info or ideas?

I wonder if it was headed to the MFA, supposedly their 3rd tower is going up?

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Its still up tonight. It's an amazing machine!

If you have the time you should go by tomorrow.

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4 hours ago, hindesky said:

I wonder if it was headed to the MFA, supposedly their 3rd tower is going up?

It was definitely in this section of Midtown. I can't think of anything else in the area it would be

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It's this going to be built in phases? 

Any idea what the other buildings will look like? 

Looks like this tower will take up 1 of the 2.5 blocks purchased. 

 

Will this building open before it's neighbor across the street?

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11 hours ago, HoustonIsHome said:

It's this going to be built in phases? 

Any idea what the other buildings will look like? 

Looks like this tower will take up 1 of the 2.5 blocks purchased. 

 

Will this building open before it's neighbor across the street?

Before Camden? Their leasing office will open in January with first move in's in February. 

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On May 3, 2016 at 11:02 PM, OkieEric said:

 

Here's what I found that probably gives haifers  the  thoughts of three buildings.

 

 

 

I drove by this site tonight on Fannin and saw some "Common Ground" signs (which are also visible in Street View).  Here is the flier for the listings:

 

https://www.dropbox.com/s/x63d4xugyutyaw6/Midtown.3.Acres.pdf?dl=0

 

Ybt4D4b.png

 

Undoubtedly the block on the lower left is the one indicated in the Caydon brochure, but from this it looks like that Art Supply building wasn't part of the deal?

 

 

 

Edited by bobruss
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