Originally Posted by samoen313
while i know the "my friend says . . . " is always a dicey way to back up your knowledge both sources are relatively close to the mouth on this one. this differs from many of the tanked projects mentioned like signature in nashville and most of charlotte in that there are five sources of revenue within the project. not just residential (if this were all res, we could have written it off long ago) or offices (tenuous, but still a no-go, especially in louisville), this also has the museum, u of louisville component and a hotel. that isn't to say that one component is going to sell the project, but there's a diverse enough base of interests going into the projects to give it at least a little more hope than many other projects.
I read you - sum of the parts, good point. However, the museum is not a revenue generator - so it can't carry it's burden of capital expense w/ which the other components must pick up the shortfall. So that has no reasonable approach to recap as far as a bank is considered. The office market won't suppport the $25/foot quotes on rent as nothing in Louisville has even come close to that threshold. And the last time I checked Abramson had run most competing fortune 1000 companies out. The res component won't generate enough presales based upon the lenders preconstruction requirements and U of L - well - my crystal ball says they may be broke before all is said and done. Not exactly a triple A rated anchor tenant and the board could never justify the rent quotes.
Its all just - interesting cocktail talk but there is no basic operating mechanism of the whole project, except one.
Have the parties that are proposing such a building had any experience in real estate development on this magnitude before - do they intend to own or flip? I mean aside of the 90 room boutique motel.
Finally curious whe makes the calls: Greenburg, Wilson, Brown or Poe?
Last question - I'll send you in a PM