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Originally Posted by Mr Roboto
So is Salesforce legit? Or is it some flash in the pan, like one of those late 90's dotcom companies. Ive just read in a few places they dont think this company is around for the long haul. IE - their stock is currently way overvalued and the bubble is soon to pop.
If so, wondering about the feasibility of this project. I know theres always speculation about companies like this, but just a little concerning that this prognosis has been found in a few places.
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Lol, who told you that? Salesforce is a $10 billion company that makes hundreds of millions of dollars a year taxable (with gross profit margins close to 70%, those profits are only reduced because they reinvest like 90% of that money back into the business in terms of selling to new clients and R+D). Their products underwrite a huge chunk of what you experience on a day to day basis when interacting with technology.
If you have Chase or Bank of America and use their website or app, it's all Salesforce. Caterpillar uses Salesforce for their advanced networking features in their highest end products. My buddy who works there spent a whole year working on CAT where they basically have developed a network of sensors installed in their heavy equipment that uses Salesforce to predict when a part is going to fail, alerts management to which machinery will need service, orders the part to be delivered to the jobsite, and then deploys the repair crew to arrive simultaneously to the delivery of the part. This kind of technology saves operators of CAT equipment obscene amounts of money as each $5 million mining shovel or mining dumptruck costs them tens of thousands of dollars an hour when it experiences downtime.
So no, Salesforce is not going anywhere unless you are going to stop using mobile banking apps and mining companies are going to be cool with having way more downtime for their multimillion dollar equipment than they need to.
And no, Salesforce is not "an email marketing company" that was just how they got their start. They are now the premier cloud computing platform that makes all these distributed applications possible. Perhaps their stock is overvalued, perhaps their profits will fall if there is a recession, but Salesforce is as Blue Chip of a company as IBM or Walmart at this point. The economy simply will not function the way it does now without them or without a competitor replacing them.
Quote:
Originally Posted by Mr Roboto
Would all of the construction financing be obtained so early? Or is it portions at a time. It wasnt long ago we were subjected to the concrete husk of the garage of the waterview tower for a few years, or even worse the hole in the ground at the spire site that's still there. Financing appears to be different depending on the project.
Not trying to be a downer, just wondering.
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Construction financing for a project like this is supposed to be procured in one big chunk that is disbursed by a title company from escrow as work is completed. Sometimes for big enough projects multiple banks will team up to split the risk. Bank A might put up the majority of a $800 million loan, say $600 million and then team up with Bank B who puts up $200 million in a second position or something. Regardless, the way you are
supposed to do it is to have all parties put all funds into a construction escrow at closing and then no one can touch that except for the contractors as the title company approves their draw requests for completed work.
Waterview, Spire, et al were not done how you are
supposed to fund a massive development project hence why they failed so spectacularly. Hines/Magaellan/Kennedys are no Garrett Kellher and Teng. They aren't going to amateur hour this project like that.