COUTURE | 537ft | 44 FL | PROPOSED - Page 94 - SkyscraperCity
 

forums map | news magazine | posting guidelines

Go Back   SkyscraperCity > Continental Forums > North American Skyscrapers Forum > United States > Midwest and Plains > Local Forums > Milwaukee


Global Announcement

As a general reminder, please respect others and respect copyrights. Go here to familiarize yourself with our posting policy.


Reply

 
Thread Tools
Old May 22nd, 2019, 03:50 PM   #1861
wndrlst
Registered User
 
wndrlst's Avatar
 
Join Date: Jan 2017
Location: Traveler
Posts: 264
Likes (Received): 280

Quote:
Originally Posted by BlueHorseShoe View Post
Even more surprising is how little skin Barrett Lo and Partners have in this project - only $5 million.
What in the actual fuc....k

That is a very small amount of money and they should definitely be able to pony up more. This makes me even more disgusted by Barrett.
__________________

eaglesfant37 liked this post
wndrlst no está en línea   Reply With Quote
Sponsored Links
Advertisement
 
Old May 22nd, 2019, 06:59 PM   #1862
UWsteve2009
Registered User
 
Join Date: Nov 2012
Posts: 1,322
Likes (Received): 1092

Quote:
Originally Posted by wndrlst View Post
What in the actual fuc....k

That is a very small amount of money and they should definitely be able to pony up more. This makes me even more disgusted by Barrett.
I agree with this. If he is 15 million dollars short, it is time to move on. Another developer will get something done in no time.
__________________

bucksfan15 liked this post
UWsteve2009 no está en línea   Reply With Quote
Old May 22nd, 2019, 07:56 PM   #1863
SidewalkMD
Registered User
 
Join Date: Feb 2016
Posts: 49
Likes (Received): 82

I'm not sure if you guys understand what real estate developers do. It isn't the job of the developer to pony up a majority of the equity.

Real estate developers exist to bring together all of the different parties that will get the project done. They're a valuable part of a project because they have the knowledge of how to propose a project that will get a loan from someone for a majority of the funding. Then they also know people that will be willing to invest their money to cover what the bank doesn't pay for. And then usually the developers throw in some of their own equity (but a small portion, especially considering loans are usually 70-85% LTC) in order to show the bank and other investors that they have enough skin in the game.

I'm really not surprised that they only have $5 million of their own money in the project. These guys aren't uber rich people - those are the investors that are putting up the majority of the equity.

This is not to say I'm not worried, though. We're obviously turning a corner on this market cycle and their projections likely have changed dozens of times since they first proposed this.
__________________

doublejman, Mesheke, good_land liked this post
SidewalkMD no está en línea   Reply With Quote
Old May 23rd, 2019, 04:25 AM   #1864
brewcityfan
Registered User
 
Join Date: Oct 2006
Location: Milwaukee, WI
Posts: 2,030
Likes (Received): 778

I think Barrett's issue now, if anything, is trying to raise private funds (that $15m) for a project that's been frankly delayed SEVEN YEARS (I believe it was proposed in 2012, right?)

If Barrett strolled up to me and asked to put in money behind the project, I'd balk. Based on how it's going, there's no guarantee it's going up; in fact, it's looking to be quite the opposite. I don't see how Barrett-Lo continues to have an amazing reputation to attract investors after this disaster of a real estate project. It's perhaps the most prime site in the whole state....what in God's green Earth is he doing!?
brewcityfan no está en línea   Reply With Quote
Old May 23rd, 2019, 07:33 AM   #1865
Paule
Registered User
 
Paule's Avatar
 
Join Date: Jul 2005
Location: Wausau
Posts: 2,646
Likes (Received): 1403

I don't know much at all of what it takes to get a project like this to get going but if the question is on whether 15 million can be raised I fail to see how that amount is insurmountable.

It seems to me that there are some here who for the last several months to last several years have been so disappointed with the speed of this project has then invested their time in spreading negativity about it.
__________________

eaglesfant37 liked this post
Paule no está en línea   Reply With Quote
Old June 8th, 2019, 02:37 AM   #1866
qwerty44
Registered User
 
Join Date: Jan 2008
Location: Milwaukee/Madison
Posts: 133
Likes (Received): 144

If Barrett cannot get that money raised it will reflect poorly on him alone. Milwaukee's first true luxury high-rise apartment opened recently with the NML. That building got to over 90%+ leased in a matter of months. That's almost unheard of. Most buildings like that are happy with 50% in a a year and 65%+ is great in the first year. 90% in under a year means they market is undersupplied and demand is there. Not to mention generally how much money is out there chasing quality real estate deals with low interest rates around the world. Raising the last piece of equity should be extremely easy unless Barrett is negligent or not doing his job.
__________________

eaglesfant37, bucksfan15, MKE-bound liked this post
qwerty44 no está en línea   Reply With Quote
Old June 8th, 2019, 02:47 AM   #1867
Crankbaiter
Crankbaiter
 
Join Date: Nov 2005
Location: Chiwaukee
Posts: 762
Likes (Received): 744

Quote:
Originally Posted by qwerty44 View Post
If Barrett cannot get that money raised it will reflect poorly on him alone. Milwaukee's first true luxury high-rise apartment opened recently with the NML. That building got to over 90%+ leased in a matter of months. That's almost unheard of. Most buildings like that are happy with 50% in a a year and 65%+ is great in the first year. 90% in under a year means they market is undersupplied and demand is there. Not to mention generally how much money is out there chasing quality real estate deals with low interest rates around the world. Raising the last piece of equity should be extremely easy unless Barrett is negligent or not doing his job.
I want to agree but isn't the market responding with an emphatic no if he can't raise the capital? I agree that it would seem like a no brainer.
Crankbaiter no está en línea   Reply With Quote
Old June 8th, 2019, 05:18 AM   #1868
MKE92
Registered User
 
Join Date: Dec 2018
Posts: 8
Likes (Received): 8

Quote:
Originally Posted by qwerty44 View Post
If Barrett cannot get that money raised it will reflect poorly on him alone. Milwaukee's first true luxury high-rise apartment opened recently with the NML. That building got to over 90%+ leased in a matter of months. That's almost unheard of. Most buildings like that are happy with 50% in a a year and 65%+ is great in the first year. 90% in under a year means they market is undersupplied and demand is there. Not to mention generally how much money is out there chasing quality real estate deals with low interest rates around the world. Raising the last piece of equity should be extremely easy unless Barrett is negligent or not doing his job.
NML and Baird give rent concessions to live there. Not comparable to a similar tower not sponsored by a major downtown employer. Demand is there, but using this as an example is misleading.
MKE92 no está en línea   Reply With Quote
Old June 8th, 2019, 06:23 AM   #1869
eaglesfant37
Registered User
 
Join Date: Mar 2014
Location: Milwaukee
Posts: 1,555
Likes (Received): 2030

Quote:
Originally Posted by MKE92 View Post
NML and Baird give rent concessions to live there. Not comparable to a similar tower not sponsored by a major downtown employer. Demand is there, but using this as an example is misleading.
I work for Baird and this is news to me.
eaglesfant37 no está en línea   Reply With Quote
Old June 8th, 2019, 11:18 PM   #1870
qwerty44
Registered User
 
Join Date: Jan 2008
Location: Milwaukee/Madison
Posts: 133
Likes (Received): 144

Quote:
Originally Posted by Crankbaiter View Post
I want to agree but isn't the market responding with an emphatic no if he can't raise the capital? I agree that it would seem like a no brainer.
If he can't raise the capital it can either be the market saying the project isn't viable, or that he just hasn't done his job correctly. My point in the initial post was that it has to be the latter. I used NML because those numbers were so strong but there are several more examples. Not to mention every luxury development gives $100-$200 discounts to "preferred" employers (AKA all large companies) in the area when they first open. It's a common national practice and yet they still struggle to reach over 60% in year 1.

Riverhouse sold to a national developer for $58 million and a just a few months ago and so did Avenir. The capital is out there and not shy about investing in Milwaukee but they may be hesitant about Barrett or the specifics in his deal structure.
__________________

MKE-bound liked this post
qwerty44 no está en línea   Reply With Quote
Old June 9th, 2019, 08:30 PM   #1871
badgers1
Registered User
 
Join Date: Mar 2015
Posts: 753
Likes (Received): 566

Quote:
Originally Posted by Crankbaiter View Post
Quote:
Originally Posted by qwerty44 View Post
If Barrett cannot get that money raised it will reflect poorly on him alone. Milwaukee's first true luxury high-rise apartment opened recently with the NML. That building got to over 90%+ leased in a matter of months. That's almost unheard of. Most buildings like that are happy with 50% in a a year and 65%+ is great in the first year. 90% in under a year means they market is undersupplied and demand is there. Not to mention generally how much money is out there chasing quality real estate deals with low interest rates around the world. Raising the last piece of equity should be extremely easy unless Barrett is negligent or not doing his job.
I want to agree but isn't the market responding with an emphatic no if he can't raise the capital? I agree that it would seem like a no brainer.
Pretty hard comparing NML to basically two dudes in Barrett/Lo.... From what I’ve heard from people in the know who have seen the actual numbers is that the numbers just don’t add up (not even close) and this thing has been a no go for over a year. If this was a slam dunk, of course getting money would be easy. The fact they can’t, speaks for itself. It’s just dying a slow death.
badgers1 no está en línea   Reply With Quote
Old June 9th, 2019, 11:06 PM   #1872
GarfieldPark
Registered User
 
Join Date: Apr 2008
Posts: 4,970
Likes (Received): 1606

By saying “the numbers just don’t add up”, what are you referring to? The financing he is working on pulling together is not enough? Or the costs for the project are adding up to more than he says they are going to be? Or something else? It does seem like something is not adding up correctly to be causing this very lengthy stall. My thoughts are that the real costs are adding up to a lot more than what he has been saying they are supposed to be. Just curious what you have been hearing.
GarfieldPark no está en línea   Reply With Quote
Old June 10th, 2019, 03:25 PM   #1873
RedLion727
Registered User
 
Join Date: Feb 2014
Posts: 523
Likes (Received): 832

While I wouldn't be surprised to see this dead, I'm also highly skeptical of a known troll waltzing in and saying so based on "people in the know" (who? If you can't share names, in what industry and position?) who have "seen the actual numbers" (which numbers exactly?)
__________________

MKERevival, qwerty44, wisco220 liked this post
RedLion727 no está en línea   Reply With Quote
Sponsored Links
Advertisement
 


Reply

Tags
couture, highrise, milwaukee, mixed use, transit hub

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT +2. The time now is 05:35 AM.


Powered by vBulletin® Version 3.8.11 Beta 4
Copyright ©2000 - 2019, vBulletin Solutions Inc.
vBulletin Security provided by vBSecurity v2.2.2 (Pro) - vBulletin Mods & Addons Copyright © 2019 DragonByte Technologies Ltd.
Feedback Buttons provided by Advanced Post Thanks / Like (Pro) - vBulletin Mods & Addons Copyright © 2019 DragonByte Technologies Ltd.

SkyscraperCity ☆ In Urbanity We trust ☆ about us