PHILADELPHIA | The Arthaus @ 311 S. Broad | 542 FT | 47 FLOORS

[McBane]

Originally Posted by jsbrook

Developers do self-finance, and are expected to have some skin in the game. They are just not financing the whole project. The equity partners/investors typically expect the developer to put in anywhere from 3-25% of costs, depending on size and value of project, the developer’s track record and numerous other factors.

Sorry I wasn't clear. In my previous post, I was referring to financing an entire project. Dranoff clearly has enough cash to do just that. It's an interesting scenario b/c businessmen like Dranoff don't just sit on cash. No, they put it to use. The question is, what does he do with all that money?

Does he build both buildings without any loans? That seems unlikely. Does he put the minimum % required to get the banks on board? That seems like a more likely scenario, although he'd still be left with a few hundred million dollars that he'd want to invest. But where? How many projects can Dranoff take on at once? How much demand for luxury condos can the market bear?

Curious to see how this plays out.

[mcgrath618]

You all doubted him. Never doubt a man like Dranoff. He gets this shit done, even if it means 4 grueling years of hurdles (both SLS and One Ardmore have taken that long at this point).

[PHL10]

Originally Posted by mcgrath618

You all doubted him. Never doubt a man like Dranoff. He gets this shit done, even if it means 4 grueling years of hurdles (both SLS and One Ardmore have taken that long at this point).

And to be honest, I'm still doubting him. He hasn't broken ground yet so it's a bit premature for "I told you so". We've been looking at a hole on Broad Street that he created for three years and counting.

[Gonzo the Great]

Originally Posted by PHL10

And to be honest, I'm still doubting him. He hasn't broken ground yet so it's a bit premature for "I told you so". We've been looking at a hole on Broad Street that he created for three years and counting.

[jsbrook]

Originally Posted by McBane

Sorry I wasn't clear. In my previous post, I was referring to financing an entire project. Dranoff clearly has enough cash to do just that. It's an interesting scenario b/c businessmen like Dranoff don't just sit on cash. No, they put it to use. The question is, what does he do with all that money?

Does he build both buildings without any loans? That seems unlikely. Does he put the minimum % required to get the banks on board? That seems like a more likely scenario, although he'd still be left with a few hundred million dollars that he'd want to invest. But where? How many projects can Dranoff take on at once? How much demand for luxury condos can the market bear?

Curious to see how this plays out.

It's expensive to operate and staff a business and self-financing complete projects would severely limit the number of projects that can be launched, especially without a large sale and cash infusion like the one that just happened. As to demand, I think we currently have a severe undersupply of luxury condos. But if everything goes to plan, this, his Pine Street tower, 1911 Walnut, and Toll Bros Jeweler's Row tower are going to flood the market. Not to mention Scannapieco 3.0, which will be in a class of its own. We'll see if it overtaxes demand.

[iheartphilly]

I'm not sure if Dranoff would fully finance a project. A smart business guy would never put all his eggs in one basket. Plus, what is his net worth? You've need to be above $100 million to start sinking 10s of million of dollars into your own development projects as a vote of confidence and to lure other investors into the projects besides getting money from the bank.

I think the recent sales of his propertys for a total of over $400 million is not net take home. I'm sure there's property loans on them, so after paying creditors, it will be much lesss.

In any case, I'm hoping that the sale of his other properties is just a profit taking and that he will put those profits to the SLS and the other developments off Broad Street.

[towerpower123]

Dranoff was dragging their feet forever but then they finally built Newark's One Theater Square, which was proposed since at least 2006! With it and a few others nearing completion, perhaps they will finally work here.

[JurassicPhilly]

I'd completely forgotten about this. I don't even care anymore. Build it. Don't build it. What's that famous line? Frankly my dear, I don't give a shit?

[skyscraper]

Originally Posted by JurassicPhilly

I'd completely forgotten about this. I don't even care anymore. Build it. Don't build it. What's that famous line? Frankly my dear, I don't give a shit?

then why are you posting?

[PHL10]

Originally Posted by JurassicPhilly

I'd completely forgotten about this. I don't even care anymore. Build it. Don't build it. What's that famous line? Frankly my dear, I don't give a shit?

If there were occupied buildings on the site, I would agree with you but since this is the current state of the site, we should all care (not a good look for our grand thoroughfare):

[JurassicPhilly]

No it isn't a great look. But it's not the end of the world either. There is too much else going on in Center City for this to be a huge factor overall.

[Knight Hospitaller]

Stick a beer garden or some other public amenity on it in the meantime. It needn't be a hole or parking lot until something gets built. They're working wonders with pop-ups these days. It's like an upscale way of filling in a vacant space with "Halloween Adventure" stores.

[JurassicPhilly]

Originally Posted by Knight Hospitaller

Stick a beer garden or some other public amenity on it in the meantime.

Awesome idea.

[boxbot]

Originally Posted by Knight Hospitaller

Stick a beer garden or some other public amenity on it in the meantime. It needn't be a hole or parking lot until something gets built. They're working wonders with pop-ups these days. It's like an upscale way of filling in a vacant space with "Halloween Adventure" stores.

The "Sign this Waiver Because an Open Pit Beer Garden was Totally Uninsurable" has a nice ring to it.

[jsbrook]

Originally Posted by boxbot

The "Sign this Waiver Because an Open Pit Beer Garden was Totally Uninsurable" has a nice ring to it.

Only half the site is submerged. They could definitely fence that off and put up some kind of pop-up on the portion that's at street level...Dranoff can launch it. Crowd fund for SLS...I hear that work is not imminent notwithstanding the sale of his other properties. This will continue to sit for a bit. Obnoxious...

[Redddog]

Originally Posted by boxbot

The "Sign this Waiver Because an Open Pit Beer Garden was Totally Uninsurable" has a nice ring to it.

"Hey, babe. Meet over at The STWBAOPBGWTU Beer Garden."

I like it.

[Knight Hospitaller]

Ha, Ha, all. Of course I understand that the site would need to be made safe with infill or a wall. Same goes for paving it over for parking. Having activity on, and some income from, the property requires some outlay. Of course it's easier to leave it fenced off and fallow.

[Groundhog]

I mean, before they started demo, this was THE beer garden that kicked off all the other ones. It set the bar high and I'd argue that few, if any, that have come since have been quite as great as that was.

[Mr Saturn64]

Originally Posted by Groundhog

It set the bar high and

Get it? Set the bar high? 'Cause we're talking about beer gardens? Which serve the same product as bars? I'll show myself out.

[boxbot]

Originally Posted by JurassicPhilly

I'd completely forgotten about this. I don't even care anymore. Build it. Don't build it. What's that famous line? Frankly my dear, I don't give a shit?

Unfortunately, this is Dranoff's burner account.