Quote:
Originally Posted by movingtohamilton
...Is there a core, fundamental flaw in his business plan? Endless red-tape at City Hall? Or is lack of financing/pre-sales at the heart of his endless delays?
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That's the real question to ask, and it's probably a combination of things.
It can't just be red tape, as we have seen other projects completed in good time- like Urban West on Aberdeen. Lack of financing may be a symptom of poor business planning. Likewise with a lack of pre-sales.
In the case of Hamilton Grand specifically, I think it is fundamentally flawed. I have been pitched the project, and do not understand why they believe there are a large number of people who would want to purchase an "investment suite" that you can never enter, and can never manage on your own. They do not know what management company will rent the suites on investors' behalf, and I suspect that it will inevitably be a company in which Stinson has interest. How could it not be?
I know that he did this kind of a condo hotel scheme in Toronto, but I don't think the need is acute here in Hamilton for many new hotel rooms, or long-term stay professional furnished accomodation, or whatever specifically these rentals are billed as. Hotel vacancy is high in Hamilton, in fact, and there are several new hotels recently opened or soon-to-be-opened in the area.
The other question to ask, therefore, is why the developer insists on this mechanism anyway. The building looks lovely, the location is perfect for a mixed-use development. I personally would like living in that location. But owner-occupied is not on the table. How many investors could there possibly be, right now, interested in buying a unit that Stinson will manage for them? Not enough, evidently.