Quote:
Originally Posted by Simplicity
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.
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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.