Activity has definitely picked back up with steady concrete pours and scaffolding work. This building is definitely not as “cookie cutter” as others that have been built in the area - there are angled sections and wide open atrium spaces for amenity floors. I would assume the tower crane who’s base has already been constructed should go up soon.
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Why secure only partial funding?
- Rates are usually highest for a project that hasnt begun. Once somrle parts of the projrct have been built, thr lender has something of value to seize if the bprrower defaults on the loan that isnt just an empty lot. In fact, most big projects do this to some extent, securing ehat is called a bridge loan at first then getting a final construction loan partway through construction.
- They may have been gambling that rates would go down. Secure funding for thr first part, then hope rates are more favorable when it comes time to secure the second loan. Anybody that gambled like this got burned in recent months, but sometimes it pays off. Agree it is risky…you have to be really convinced you’re right to try this.
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