This is bound to make on forumer I know very unhappy. And if this is true, it casts doubt on comments of other forumers about the project languishing.mileageman said:"We have plenty of buyers," said Tibor Hollo, chairman of Florida East Coast Realty, who is developing Villa Magna, two towers on Brickell Avenue, which he said was the last available waterfront parcel. Since his first building opened for sale in February, Mr. Hollo said, 167 of the 787 units have sold, each at more than $1 million.
:speech:fairweatherfriend said:I really do not believe this project is going to fly. Even if 167 units have sold to date (and I doubt that), given today's market, I anticipate sales will bog down in the very near future, if not already....What type of presales gets them their construction financing?
Rx727sfl2002 said:usually 60 percent gets them a loan to construct the tower.
i recall there was about 700 or so units 800 to be safe in villa magna
so that would mean that they need about 420-480 units presold to get there loan...
Dale said:Then how is it that some developers, notably Novarre, break ground prior to sales ?
Maybe they finance in-house, I don't know. Related might be another example of a developer for whom this never seems an issue.
That is it. Some developers, another notable is Intel Development (Avenue), will use internal financing to get the project rolling as they begin sales, they inevitably will use bank financing.Dale said:Then how is it that some developers, notably Novarre, break ground prior to sales ? Maybe they finance in-house, I don't know. Related might be another example of a developer for whom this never seems an issue.
Roark said:Developers that use there own money take on significantly more risk, but may be able to negotiate better loan terms for doing so.