Developers falling into a Catch-22
July 01, 2008 01:57PM
It's a tough time to be a residential
developer, as The Real Deal explores
in a series of stories. Projects
are taking longer to sell out, placing
developers in a bind as lenders
typically won't let them lower prices.
And as units sit, developers find
themselves with additional costs.
Some developers are choosing to
go with Plan B and switch from
condos to rentals, but even that is
far from a safe bet these days.
Developers in a bind over prices
Shouldering the costs
Choosing Plan B: When going condo to rental makes sense
Flippers sweat to avoid flop
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Comments
hooray4hines
I dont think the equation is a mystery in NYC (for major projects). Developer expresses intent to develop said property. Mayor looks at said property and says, "wooo, we can do more with that. Orders studies for take over that land." Mayor says, "why is that a happy profit makin merchant when we could take over his land and hand it to a Parksider? Hmmm.
Comment #1 Posted By: hooray4hines 07/09/08