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Granby Tower

brikkman

By brikkman
in Norfolk

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willeystyle1 Crossroads

willeystyle1

Posted
Posted

The only thing that might keep this project alive right now is replacing Marathon and Buddy with true big project developers. They'd have to cut the project in half, retail and residential especially, to keep it alive if Marathon is insisting on taking the lead. It just won't be done with an unproven developer at the helm.

And depending on your definition of imploded, you could argue that things already have...

lawsuits, leins, torrents of bad publicity, repeated false starts, phony ground-breaking, losing financing at least three times....maybe implosion might be a little strong but this project has been anything but quiet, it would make sense for it to just fade away quietly into the night, unfortunately

When did they lose financing 3 times. I thought they only lost it once...which was last September, 2007 and we still don't know when or if they will get again!

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spiker3 Hamlet

spiker3

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When did they lose financing 3 times. I thought they only lost it once...which was last September, 2007 and we still don't know when or if they will get again!

Their original financing was lost in 2006, they started test piles in December 05 but were unable to proceed. Then they put together another financing package but that fell through in January 07. Finally they got the financing from Stonington Capital and proceeded with the ground-breaking in May 2007. They began construction in September 07, delays due to 'closing issues' which turned out to be cold feet from the financier, they never completed the package, losing it again, and resulting in construction stoppage, and subsequent leins. Since then a 'top 10 national lender' was promised, then 'days away from closing' then a 'partner in Chicago' and the last financing we've heard was from Fraim at the State of the City in February, promising financing had finally been brokered, which turned out not to be true either. Techincally you could say four times then

Unless credit markets drastically improve and Gaddams reputation suddently shoot through the roof, we almost assuredly know they won't get financing again. It will take a deep pocketed partner to get financing at this point.

Sorry vdogg :thumbsup:

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  • 3 weeks later...
urbanlife Town

urbanlife

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Posted

well, what is the lesson we have all learned here?

If you are a small time developer, stick to the small time projects, you will be much more successful at them. If Gadams proposed a 10-12 story building with retail, condos, and amenities, this building would be half way through construction because he would of been able to sell each unit before breaking ground. He could of easily gone on and done a few more of these buildings in downtown, but instead he was greedy and wanted the tallest building in norfolk, plus be in an area where it would really stand out, which turned out to be his biggest failure.

Basically what was going on was this was a small time developer that wanted to take a big risk during a time that the housing market was great in order to increase his profits and make him a big time developer. If this tower would of succeeded, he would of been on his way to becoming a strong developer name in the city and region, but in the end he bit off more than he could chew.

So if anyone reading this ever wishes to build a tower like the Granby tower, start off small, a duplex, then an apartment building, then maybe a complex, then a couple 10 story buildings. Then when you are ready, sell off all those properties or use them as collateral in building something like the granby tower. Trust me, you will be much more successful that way.

I say that because here in portland, we have a big time local developer that got his start building these 8 unit apartment buildings throughout the neighborhoods in the city. They are ugly generic and all look the same, but now he is talking about building towers in downtown and he can really do that now because of those small steps.

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umterp03 Crossroads

umterp03

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So if anyone reading this ever wishes to build a tower like the Granby tower, start off small, a duplex, then an apartment building, then maybe a complex, then a couple 10 story buildings. Then when you are ready, sell off all those properties or use them as collateral in building something like the granby tower. Trust me, you will be much more successful that way.

It's funny I think one of the first buildings he developed/renovated was next door to me, it's an old style condo building on Colonial Avenue.. He did a fantastic job, but it only has 6 units.. I think he should have taken baby steps instead of the leap into the 300 unit Granby Tower. I like how he keeps telling people financing is coming.. he gave it a decent shot, but he needs to step aside and give way to the big boys to make this happen. That land is a wasted opportunity for another developer who can deliver, I wonder how much longer the city will put up with his antics?

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Telmnstr Burg

Telmnstr

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Posted

There are "Granby Towers" all across the USA. I think one or two bear Trump's name even. The comical part is, people all gobbled up Trump condos because they wanted to be one with the man himself. Except, the condos have absolutely nothing to do with Trump, he just sold his name for the projects.

If all units were sold, then it would probably be under construction. They generally won't barter at all with the price, because they are afraid everyone else will back out or sue. They often try to throw in upgrades to make up the difference, but it won't work now. Straight up cash back is considered illegal, not that a whole bunch of that hasn't been going on.

Also, the people that bought have deposits. So who knows how many of them would have to sell their other house in order to move into the tower itself, which poses a whole new issue. I assume they can't put contingencies on the sale of their existing residence, since it's just a deposit.

Had Granby Tower gotten underway sooner it would be standing. Not to say that half the units wouldn't be sitting unsold, that current tennants might face doubling of their condo fees to cover the missing revenue.... but it would be there (and that is what matters).

Blocking the view of the beautiful AT&T building.

I'm sorry I forgot to drop the urban planet name on the thread today, it might have encouraged more people to the board. Pilot seems to let me get away with it sometimes.

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Sky06 Burg

Sky06

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Posted

Someone please explain to me the purpose of this article. The Pilot put the same exact article in the paper once before. It's as if the Pilot wants it to fail so it has something to talk about. I'm bored with this newspaper. It has nothing original to talk about. Hey, Pilot, there's a whole great big world out there!!!

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vdogg Megalopolis

vdogg

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Someone please explain to me the purpose of this article. The Pilot put the same exact article in the paper once before. It's as if the Pilot wants it to fail so it has something to talk about. I'm bored with this newspaper. It has nothing original to talk about. Hey, Pilot, there's a whole great big world out there!!!

Lol, I know. They even put the same "Do you think Granby Tower will ever get built" poll up too. Slow news day I guess. :rolleyes:

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vtfan18 Whistle-Stop

vtfan18

Posted
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You can go to WHRO.com and listen in on Hearsay. Apparently that discussion is over. National news now.

After the show they normally post a recording which you can download. Try checking back tomorrow on Hearsay and see if its posted. I caught bits of the show but they interviewed people who have deposits on a unit and discussed speculation of Buddy getting financing. They also discussed the boom in construction downtown along with Waterside.

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stillill Unincorporated Area

stillill

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I listened to the report on WHRO. A lawyer who worked with Gaddams on the eminent domain lawsuit with the Feds called in and said that an announcement confirming financing would probably happen within the next couple of weeks. He also said that the source of the financing would be a big suprise. Harry Minium was in studio and basically said, "Ill believe it when I see it". <_<

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erdogs Burg

erdogs

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He also said that the source of the financing would be a big suprise. Harry Minium was in studio and basically said, "Ill believe it when I see it". <_<

Trump is financing it and will add 20 floors to the project. :rolleyes: Ok, so I made it up. They have been dangling that carrot too long to be taken serious.

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Sky06 Burg

Sky06

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The last time somebody said get ready for a big surprise, their head exploded (Total Recall).

Of course, this is the 2nd such statement in last couple of weeks (neither from Gaddams himself), so maybe things are about to happen.

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urbanlife Town

urbanlife

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Well I hope it happens, but my question would be with this "big surprise" with financing, does that come with a reallocating functions for the building. The condo boom isnt that hot right now in many cities, I am not sure of the full effect in Norfolk. Could this tower become more of a mix use project that increases its retail and office space within it?

I do hope this gets built because nothing worse that having a dead construction site sitting downtown for years to come. At least it isnt as bad as Boise, where they had a condo project die after they dug a giant hole in the ground for it. Also the same thing happened in Bellevue. For both cities it took years before another developer came on the line to fill those holes.

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