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Originally Posted by SamInTheLoop
^ There's gotta be big institutional money behind this, no? Or was there and they split? As mentioned, I've had the feeling there might be major capital partner issues going on. Something about Gloor's Razzie worthy schtick lately/ public B Johnson fluffing/turn to the Chicago Teachers Pension Fund.....it's all just a bit much. And, man, their parting ways with Citadel down in hype cycle land for new hq - ouch.
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You kinda answer your own question:
Quote:
Originally Posted by SamInTheLoop
Well, rule #1 of real estate development is you build with other peoples' money.
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The institutional money never existed. As usual Sterling Bay is acting as a pure developer and attempting to generate profits out of thin air by merely tying up the land and entitling it. There probably were institutional players ready to shell out, but changing economic conditions like money no longer being free put the kabosh on that.
So now you have Sterling Bay sitting on entitled land that they acquired with other people's money, but can't begin developing because it's a nasty brownfield with zero infrastructure. The other people in this scenario are understandably not satisfied with the recent headlines from what I hear.