Society | 28- & 17-Story Residential [Under Construction]

[popsiclebrandon]

Most of the deals are only tentative til approval of the project so you don't buy land you can't use.

VMC isn't even attempting to buy land.

[spenser1058]

50 minutes ago, popsiclebrandon said:

Most of the deals are only tentative til approval of the project so you don't buy land you can't use.

VMC isn't even attempting to buy land.

VMC = Virtual Medical City?

[HankStrong]

Don't doubt The VMC

[spenser1058]

14 minutes ago, HankStrong said:

Don't doubt The VMC

Never! It’s the most stable, well-thought out project ever conceived by humankind.

Once it's built, Mayor De Blasio will genuflect when Orlando eclipses Manhattan as the true first city of these United States.

Edited May 7, 2019 by spenser1058

[aent]

6 hours ago, Jernigan said:

Interesting.  I took land ownership to be one of the main reasons for skepticism around Vertical Medical City.  Good to know.

Yeah, there's typically 3-4 phases to the land deals (simplified): 

0) LOI - no deposit where you are negotiating and starting to look at things, either party can walk away as they please so not much money is spent on too much research

1) Refundable Deposit - price is agreed to, land is secured for buyer but buyer can walk away without losing anything, buyer can do research such as borings/soil testing and get plans drawn up (typically conceptally) to make sure the county approves the concept, typically like 30-90 days

2) Non-refundable deposit - buyers deposit now belongs to the seller, much more detailed work is done such as pulling permits, getting more final approval for more details, gets their financing in order, etc, often another 30 days to a year depending on what the deal is

3) Closing - seller gets fully paid for the land and buyer now owns it

 

VMC is likely at stage 0 or 1, this was at stage 2, and just went to stage 3

[dcluley98]

One of the main skeptical points on VMC is they don't have the financing TO buy the land. I agree with your assessment of the cycle, Aent, but they said they were going to try to do a lease deal. I am not too familiar on how that would work. 

[IAmFloridaBorn]

8 hours ago, aent said:

Yeah, there's typically 3-4 phases to the land deals (simplified): 

0) LOI - no deposit where you are negotiating and starting to look at things, either party can walk away as they please so not much money is spent on too much research

1) Refundable Deposit - price is agreed to, land is secured for buyer but buyer can walk away without losing anything, buyer can do research such as borings/soil testing and get plans drawn up (typically conceptally) to make sure the county approves the concept, typically like 30-90 days

2) Non-refundable deposit - buyers deposit now belongs to the seller, much more detailed work is done such as pulling permits, getting more final approval for more details, gets their financing in order, etc, often another 30 days to a year depending on what the deal is

3) Closing - seller gets fully paid for the land and buyer now owns it

 

VMC is likely at stage 0 or 1, this was at stage 2, and just went to stage 3

Essentially after stage 3, they can move forward with project pending approval of city board?

[AmIReal]

18 hours ago, dcluley98 said:

Aent, but they said they were going to try to do a lease deal. I am not too familiar on how that would work. 

Land leases are not that unusual in commercial real estate (often out parcels), but for a project of this size that would be unique. Tons of condo buildings in NYC are this arrangement. It makes them cheaper to get into, but generally harder to sell as the lease period rolls on (usually 40-99 years).

In the case of VMC, this is another indication they have no cash or financing.

9 hours ago, IAmFloridaBorn said:

Essentially after stage 3, they can move forward with project pending approval of city board?

I assume yes, as you said pending all approvals from the City.

[dcluley98]

52 minutes ago, AmIReal said:

Land leases are not that unusual in commercial real estate (often out parcels), but for a project of this size that would be unique. Tons of condo buildings in NYC are this arrangement. It makes them cheaper to get into, but generally harder to sell as the lease period rolls on (usually 40-99 years).

In the case of VMC, this is another indication they have no cash or financing.

Agreed. 

[jrs2]

20 hours ago, dcluley98 said:

One of the main skeptical points on VMC is they don't have the financing TO buy the land. I agree with your assessment of the cycle, Aent, but they said they were going to try to do a lease deal. I am not too familiar on how that would work. 

wow.  they don't have the funding, huh...I'm shocked that a bank wouldn't jump at the opportunity to finance THIS of all types of projects...

[aent]

16 hours ago, AmIReal said:

Land leases are not that unusual in commercial real estate (often out parcels), but for a project of this size that would be unique. Tons of condo buildings in NYC are this arrangement. It makes them cheaper to get into, but generally harder to sell as the lease period rolls on (usually 40-99 years).

 

Yeah, my experience with land leases is they're usually done when the land value far exceeds the value of the building that will likely be constructed on said land, which is often the case for, say, a fast food restaurant. Never on the largest building in a city lol

[nite owℓ]

6 hours ago, aent said:

Yeah, my experience with land leases is they're usually done when the land value far exceeds the value of the building that will likely be constructed on said land, which is often the case for, say, a fast food restaurant. Never on the largest building in a city lol

 

NYC may be the exception to the rule (e.g. Chrysler building).

 

[aent]

8 hours ago, nite owℓ said:

 

NYC may be the exception to the rule (e.g. Chrysler building).

 

Haha, maybe, but the land there is sooooo insanely valuable that I don't even know how common that part is lol... my experience is mostly not in downtowns as well to be fair.

[nite owℓ]

14 hours ago, aent said:

Haha, maybe, but the land there is sooooo insanely valuable that I don't even know how common that part is lol... my experience is mostly not in downtowns as well to be fair.

Hey, we have some insanely valuable land too! When FUMCO fleeced the city on the sale of the DPAC lot, I remember it being mentioned in the Sentinel that we paid more for that lot than comparable property in Manhattan.

My memory is a little fuzzy on this, but isn't the land in CV still technically owned by the city? I think I recall some kind of creative brainstorming to make the whole thing come to fruition due to the $90M loan...

[IAmFloridaBorn]

Does this mean anything or no? 

[spenser1058]

1 minute ago, IAmFloridaBorn said:

Does this mean anything or no? 

We’re waiting for dcluley to post the Port-a-Potty pics - that’s when we’ll know it’s happening.

[dcluley98]

Looks like geo-tech doing soil core samples. 

[gibby]

There were also some surveyors out there a few days ago when I jogged by.

[JFW657]

1 hour ago, spenser1058 said:

We’re waiting for dcluley to post the Port-a-Potty pics - that’s when we’ll know it’s happening.

[spenser1058]

8 minutes ago, JFW657 said:

I’ve been meaning to ask - is that Ron Paul in the GIF?

[dcluley98]

Yes. https://knowyourmeme.com/memes/doom-paul-its-happening

 

[spenser1058]

1 minute ago, dcluley98 said:

Yes. https://knowyourmeme.com/memes/doom-paul-its-happening

 

Thank you - that’s been running around my brain for weeks! (As we know, I’m a political junkie.)

[Uncommon]

2 hours ago, JFW657 said:

You’ve won the internet today. Cheers.

[jrs2]

22 hours ago, Uncommon said:

You’ve won the internet today. Cheers.

now, THAT, is funny...

[spenser1058]

JFW helps us keep everything in perspective.