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Old Posted Oct 27, 2014, 10:09 PM
Winnipeg Architect Winnipeg Architect is offline
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Posts: 111
Originally Posted by Simplicity View Post
How's anybody going to build a 12-storey complex on land that they paid $9.5MM for? They would assuredly be in default to the original investors on that purchase - a separate entity altogether - and would likely be sued for misrepresentation. Fortress either has to get the value out of that land - which is somewhere on the order of 380 units - or they have to buy out the original investors and take a write-down on the value which would have to come out of their pocket. That would also be their first money into the project; lighting about $4MM on fire.

Stop paying any attention to this project.
He is correct.

I have paid for land the past 5 years:

12 units: $200K = $16.66K per unit

24 units: $250K = $10.4K per unit

Sky City 380 units : $9.5M = $25K per unit if they build all the units.

If the project is downsized to 1/2 then it will be $50K per unit.

That is pretty tough to sell a $200K condo when the land cost if $50K.
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