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Mosaic is having a Tower Launch Party this Wednesday, Sept. 27:

http://www.mosaichouston.com/news/

I noticed on their Partners page that Florida Capital RE Group is listed along with Compass Bank and Babson Capital Management.

According to Babson's website, they financed the apartment tower. I'll bet that Compass Bank gave advisorial services or issued the senior loan on the apartments; no bank would ever lend on a condo project like this. And that means that Florida Capital is probably the primary lender on the condos.

So...might us Houstonians be the beneficiaries of a flight of capital from Florida to markets that are perceived as more secure? And if so, how long is this sustainable if energy prices continue to fall? I suppose on the other hand that they could've just gotten really good terms out of the deal. Its still kind of a mystery to me.

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Its still kind of a mystery to me.

Mystery partially solved.

For official purposes as far as the lenders are concerned, Philips Development is building TWO apartment towers. The financier of the second tower is providing construction financing as though it were apartments, and Philips Development will immediately convert that tower to condominiums upon completion. They're hoping that there are enough presales by that time to cover the balloon. If not, then they'll have to work out something in the interim with another lender in order to cover the difference.

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if they cant get the presales and a lender will allow them to build tower 2 as apartments, then that is what will happen. problem is they need $30m in mez money and no one will step up to the plate...

confucius say as long as lenders lend, builders build :mellow:

in regards to high-rises coming from nowhere, look at 3333 allen parkway. never could get 50% leased and the sales were absolutely horrific. currently on the market as apartments, again, and at a discount from previous sale.

Houston-Development has really cut to the heart of the issue here. The folks that originally built 3333 made money. Now, various groups are left trading an asset back and forth that is overpriced and should not have been built.

I looked at the pictures on the party page and it really does look like a first class operation. Guess my invite got lost in the mail....

Moral is: If you can get a building financed, there will almost ALWAYS be someone that will buy it from you and save your bacon. That is a tremendously risky way to approach development, but it happens every day....

So, as much as i think we'd all like to debate the merits of Almeda and how nice the views are, IMO, these guys built it b/c the condo hysteria that set in for a while had some out of town lenders convinced it was feasible. The current guys will build, take a hefty fee, and sell as rental to a converter.

The converter, who will undoubtedly be from out of town, will sell very slowly, lose money and the bank will get back a chunk of the units....

Of course, it may sell out before it's built. I like my side of the bet better though.

TNJ

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Mosaic is having a Tower Launch Party this Wednesday, Sept. 27:

http://www.mosaichouston.com/news/

I saw myself in the party photos! It looks like a great building. The party was a lot of fun. They are taking refundable advanced reservations so I place one and got a place in line. My salesman was nice. In case you guys need more info, his name is Kirk, number 281-615-8142.

Rena

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Hello,

Has anyone here put down a deposit, beacause i have. Im interested in what your impression has been so far. I was told I'd be called in late January to sign the final contract. I really was impressed by this project but i wanted to know other peoples thoughts.

Edited by SGARCIA1442
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  • 3 weeks later...
Hello,

Has anyone here put down a deposit, beacause i have. Im interested in what your impression has been so far. I was told I'd be called in late January to sign the final contract. I really was impressed by this project but i wanted to know other peoples thoughts.

Was there yesterday, if what they are saying is true, then they are doing quite well. I was told that only 56 of the 400 units are available. They will start the footprint for the second tower later this quarter. First tower close dates (move in) should be September.

Honestly as a potential investor I have little doubt that in 2yrs (baring a major downturn in the Houston economy) you could flip one of the "downtown view" apartments for a profit. The problem for me was the timeframe, to long for what I needed.

Cheers,

DB

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Found this on their webpage. There is also a webcam incase anybody is interested.

MOSAIC ANNOUNCES COMPLETION OF VERTICAL CONSTRUCTION

Apr 03, 2007 @ 09:06 am by Mosaic of Houston

Mosaic First Tower Gets

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How the heck do those viewer-controlled remote cams work ? If I pan the camera and someone else happens to be viewing it, will their view change also ?

Is it like dueling remotes ?

Usually you get a certain amount of time to play with the cam... and whoever is watching it sees what you want to see... and then when your time is up the next person gets a chance. That's how others I have used worked.

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No, the idea was/is to build the first tower, allow time for the units in that building to be filled and then start building the second tower not much longer after that.

that is kind of a pain for the residents though, to deal with the noise of a second building going up a rocks throw away.

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