Quote:
Originally Posted by Illithid Dude
I wonder why? I mean, all these other developers do fine with their downtown properties. I'm guessing there is more to this story, something shadier, probably.
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These big developers raise money from investors for the construction but then siphon money off $$$ for themselves and their operations by cutting back on the quality of the construction materials while getting a bigger construction loan. Then the building has trouble renting up because the construction looks cheap to perspective renters but they need big rents to pay off the construction loan. Throw in a bad recession and that makes it difficult for a building to pencil out and the developer freaks.....throws out any screening requirements and rents to any warm body. A temporary fix that proves disastrous further down the road.
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