Quote:
Originally Posted by jsbrook
Developers do self-finance, and are expected to have some skin in the game. They are just not financing the whole project. The equity partners/investors typically expect the developer to put in anywhere from 3-25% of costs, depending on size and value of project, the developer’s track record and numerous other factors.
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Sorry I wasn't clear. In my previous post, I
was referring to financing an entire project. Dranoff clearly has enough cash to do just that. It's an interesting scenario b/c businessmen like Dranoff don't just sit on cash. No, they put it to use. The question is, what does he do with all that money?
Does he build both buildings without any loans? That seems unlikely. Does he put the minimum % required to get the banks on board? That seems like a more likely scenario, although he'd still be left with a few hundred million dollars that he'd want to invest. But where? How many projects can Dranoff take on at once? How much demand for luxury condos can the market bear?
Curious to see how this plays out.
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