Triton Posted February 14, 2014 Share Posted February 14, 2014 Interesting article on Biz Journals today: AIG is one of the lenders on the renovation of the Hilton Americas downtown, part of the downtown redevelopment ahead of the 2017 Super Bowl. "That plan was done to accommodate the needs of Houston First and the GRB (George R. Brown Convention Center). So, in a way, we had a hand in bringing the Super Bowl to Houston," Johnson said.AIG also provided $115 million in financing for another downtown project that Johnson declined to name."It's a new world," said Kerry French, managing director of NorthMarq, a Bloomington, Minn.-based company that is the largest privately held commercial real estate firm with more than $10 billion in annual production volume and a loan portfolio of more than $41 billion. "Banks are getting into fixed-rate debt and insurance companies are into construction loans." http://www.bizjournals.com/houston/blog/money-makers/2014/02/remember-aig-theyre-back-and-growing-in-houston.html Anyone know anything? At that price range, I'm thinking more of a renovation based on the usual cost of a new tower. Hopefully this is the financing for the One Allen Center renovations I keep getting told about but that's just a big guess. Link to comment Share on other sites More sharing options...
cloud713 Posted February 14, 2014 Share Posted February 14, 2014 115 million would seem like too much for renovations of one allen center? SkyHouse was built for around 60-70 million.. Link to comment Share on other sites More sharing options...
Moore713 Posted February 15, 2014 Share Posted February 15, 2014 115 million would seem like too much for renovations of one allen center? SkyHouse was built for around 60-70 million..One of the propsed high rises perhaps... seems about the right amount for a high rasies.... Link to comment Share on other sites More sharing options...
lockmat Posted February 15, 2014 Share Posted February 15, 2014 115 million would seem like too much for renovations of one allen center? SkyHouse was built for around 60-70 million..Yes sir, $60 mil. http://www.newsobserver.com/2013/10/30/3325455/construction-set-to-begin-on-23.htmlI wonder if that includes the land purchase? Link to comment Share on other sites More sharing options...
cloud713 Posted February 15, 2014 Share Posted February 15, 2014 good question. either way id bet they are referring to a new highrise. probably one we already know about, but the "public" doesnt.. maybe we will be surprised with something new? Link to comment Share on other sites More sharing options...
Triton Posted February 15, 2014 Author Share Posted February 15, 2014 Wow. So probably not a renovation. Well this is even better news if it's a new tower. Link to comment Share on other sites More sharing options...
Triton Posted February 15, 2014 Author Share Posted February 15, 2014 I have no clue why I thought new skyscrapers cost so much more... Edit: Maybe from SkyscrapersPage where I see the prices of towers in NYC and Dubai. Link to comment Share on other sites More sharing options...
lockmat Posted February 15, 2014 Share Posted February 15, 2014 The new convention hotel is $324M. I wonder if skyhouse's numbers are a tad skewed since they are building essentially tract towers.http://blog.chron.com/primeproperty/2012/12/downtowns-324-million-hotel/ Link to comment Share on other sites More sharing options...
IronTiger Posted February 15, 2014 Share Posted February 15, 2014 Wasn't there something planned for the block bounded by Texas/Fannin/Capitol/Main? Link to comment Share on other sites More sharing options...
Triton Posted February 15, 2014 Author Share Posted February 15, 2014 Wasn't there something planned for the block bounded by Texas/Fannin/Capitol/Main?....the Hines tower? Link to comment Share on other sites More sharing options...
cloud713 Posted February 15, 2014 Share Posted February 15, 2014 The new convention hotel is $324M. I wonder if skyhouse's numbers are a tad skewed since they are building essentially tract towers.http://blog.chron.com/primeproperty/2012/12/downtowns-324-million-hotel/i wondered that too but i think the hotel is just really expensive for whatever reason hotels may be expensive. the massive 1.7 million square foot Chevron Tower (JP Morgan is "only" 1.9) was supposed to cost less than 400 million. so i dont think 115 million for a 20-30 story 500,000 sq ft highrise is out of the question.Edit: ****, i hope its not the Hilcorp tower... Link to comment Share on other sites More sharing options...
democide Posted February 15, 2014 Share Posted February 15, 2014 It doesn't seem to me that Hilcorp would need to borrow money to build their tower. Link to comment Share on other sites More sharing options...
H-Town Man Posted February 15, 2014 Share Posted February 15, 2014 Couldn't AIG just be doing partial funding for a tower? Don't these things often have multiple backers? Link to comment Share on other sites More sharing options...
jt16 Posted February 15, 2014 Share Posted February 15, 2014 It doesn't seem to me that Hilcorp would need to borrow money to build their tower.Whether you need it or not, it makes sense to finance real estate, especially with relatively cheap money. Link to comment Share on other sites More sharing options...
Urbannizer Posted February 15, 2014 Share Posted February 15, 2014 Could be anything, not enough info. Link to comment Share on other sites More sharing options...
cloud713 Posted February 15, 2014 Share Posted February 15, 2014 while searching for $115 million downtown Houston projects i found this from 2002, to give an idea of what we could expect for the money. granted there has been some inflation since then.20025 Houston Center1400 McKinney. New construction of a 27-story, 581,000-square-foot office building with an eight–level, 1,250-car parking garage. Developer: Crescent Real Estate Equities, Ltd. Estimated cost: $115+ million.http://downtownhouston.org/site_media/uploads/attachments/2013-03-26/Downtown_Development.pdf Link to comment Share on other sites More sharing options...
swtsig Posted February 16, 2014 Share Posted February 16, 2014 Couldn't AIG just be doing partial funding for a tower? Don't these things often have multiple backers?Attaboy.If AIG is funding projects it's from the equity side not debt. So 30-35% of total value. Link to comment Share on other sites More sharing options...
cloud713 Posted February 16, 2014 Share Posted February 16, 2014 30-35% of total value? that would be a very large project ($330 million at 35%).. Link to comment Share on other sites More sharing options...
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