Quote:
Originally Posted by Stunnies23
So the bush temple flats apartments have still not had even 1 move in yet. How is this company profitable enough to start construction on the Lasalle project rehab? It's been over two years since they started the project.
|
The Bush project wasn't even approved by the City until about 18 months ago. I don't know why it doesn't have leasing yet. Maybe they need to do something with the 15-story tower land before they start leasing (not completed, but maybe some connector put in place or something, who knows). Or maybe there is still some interior work being finished or some sort of snag with final permitting.
They sold some of their buildings last year to fund newer renovations. Depending on how they structure themselves, finding funds for current projects doesn't necessarily have anything to do with profitability of completed buildings.
June, 2016, the sold six buildings for $67 million (875 N. Magnolia Ave., 5051 and 6134 N. Kenmore Ave. and 5411 and 5718 N. Winthrop Ave), and then in November they sold their headquarters building in Uptown for about $7 million more. They made a small profit on the headquarters building.
I think their business plan is mostly to make money rehabbing places and that the apartment management aspect is more about being able to hold over buildings until they find the right buyer and/or to be able to demand a higher price for a leased vs unleased building.