Big cities pummeled by COVID--best time to start new highrise projects? - Page 3

Steely Dan · #41 Posted **Sep 1, 2020, 11:56 PM**

Quote:

Originally Posted by mhays

Agreed...continuing construction isn't the same as starting. The default is to continue existing projects unless something goes majorly wrong. Starting a new project is never the default position.

Yep, construction continuing on projects that started pre-covid is of no particular note. Once the construction loan on a project closes, all parties involved have a seriously invested interest to see the project completed.

As you said, shit has to go seriously awry for work to stop on an already funded project.

But large tower projects that have landed financing and started construction after the onset of Covid (mid march for most of the US), those actually ARE of particular note, and what we are specifically discussing in this thread.

mrnyc · #42 Posted **Sep 2, 2020, 3:39 AM**

^ thats not true. some of these projects sat dormant for quite awhile for various funding and then pandemic reasons. one i posted is supposedly just starting up right now during covid. there is another project also nearby us that is partly built and halted due to funding issues and has not restarted, dubious if it ever will. see below. the point is there is no such thing as something being a sure thing until its built. covid isn't doing anyone any favors in development.

https://newyorkyimby.com/2020/01/wor...manhattan.html

Steely Dan · #43 Posted **Sep 2, 2020, 3:53 AM**

^ Any developer who starts drilling before they've closed on the main construction loan is setting themselves up for a world of hurt.

Every time that has happened with high profile towers in Chicago, they've all crashed and burned: the Chicago Spire, Waterview Tower, and much more recently, 1000 S Michigan.

In any event, none of that changes the fact that this thread is specifically about highrise projects that have started AFTER the onset of the Covid pandemic. It's right there in the title.

mrnyc · #44 Posted **Sep 2, 2020, 4:01 AM**

^ i dk why you mention those, there are no major new towers like that in my neighborhood. these mentioned are small neighborhood projects. and as i said, many of these did ramp up or are just starting up during covid, or also are halted for whatever reasons. its a good and varied covid showing for a few blocks perimeter.

streetscaper · #45 Posted **Sep 2, 2020, 5:07 AM**

Which ones Started during Covid?

mhays · #46 Posted **Sep 2, 2020, 5:34 AM**

Quote:

Originally Posted by mrnyc

^ thats not true. some of these projects sat dormant for quite awhile for various funding and then pandemic reasons. one i posted is supposedly just starting up right now during covid. there is another project also nearby us that is partly built and halted due to funding issues and has not restarted, dubious if it ever will. see below. the point is there is no such thing as something being a sure thing until its built. covid isn't doing anyone any favors in development.

https://newyorkyimby.com/2020/01/wor...manhattan.html

Projects that pause and restart for any reason aren't the topic here. Yes a lot of projects have paused due to issues like:
--States that required them to stop.
--The challenges of Covid-safe construction being too much, at least for now.
--Supply chain issues, perhaps due to factories with Covid slowdowns.
--The developer or financial partners having financial issues due to Covid.

But a real construction start is a much higher hurdle than those.