Quote:
Originally Posted by We vs us
So -- they have a demo permit for the existing structure, and they've submitted plans to the city for approval. Looks like all they need is someone to back the project!
Am I correct in assuming that that's their next steps? That most of this is to package it for a lender?
I'm wondering if we'll see the projects start to hit the wall at this point, given the economic uncertainty.
EDIT: and if that's the case, I'd put 5C, 84 East, both of the Rainey towers, and the BBVA tower on a watch list. And I'm sure there're others I'm not thinking of . . .
|
Most projects of this size have a million things going on at once. I'm sure that while they were submitting demo and site plan permits, they were also seeking construction capital.
Where they are in obtaining that...I don't know.
Some things to watch: Construction capital is going to be difficult to obtain should the recession linger (more equity will be required). Construction costs are going to possibly increase due to several material items being generated in China. With that said, material shortages may occur. And should economic tensions remain - expect those prices to continue to climb and shortages to expand.
So, there will probably be some casualties. However, I would expect that most of Austin's projects will get built at some point and to some degree versus their original plan.
With regard to Tower 5C, BBVA and 44 East Avenue - I believe all of those have already secured construction financing.