As others have mentioned, the timing here may work out for Sterling bay and Magellan. I'm also floored that they pulled off the financing for a project with a hotel component right now. I'm not in the least worried about the apartment component here, but the hotel portion is a huge question mark - even potentially in 2022, 2023, maybe further out. The market could always roar back once covid subsides likely next year, but the recovery may also drag out for several years.
One thing I had been wondering about previously was why this project didn't begin construction in Nov '19 as it was slated to. Something held it up obviously, and I never saw any reporting or heard chatter as to what was up at the time - no macro concerns certainly then - I wonder if it had something to do with the landing of the hotel flag, the deal which was finalized around that very time....something design wise, or financing wise related to it? Regardless, it may have worked out better for the developers and investors that it was delayed, giving an 8-10 mo delay in project delivery, and additional time for the hotel market to begin recovering?
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It's simple, really - try not to design or build trash.
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