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Old Posted Jan 10, 2017, 6:36 PM
PhillySteaks PhillySteaks is offline
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Join Date: Jun 2014
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Originally Posted by christof View Post
Can they get the financing for this? $500 million is a pretty large chunk of change. Especially for a development that is on the northern frontier of center city.

My guess the project is whittled down to the $250M or below range.
Is it $500m or $300M? I also read another article that said $280M. I think their is a typo up top. The office component has the highest likelihood of getting the axe. I don't know if you can get the rents to justify new development in that location, especially because there is no KOZ - but we won't know until that time comes. Maybe there is a lot of people out there willing to pay $45+ for office space at Broad & SG. I think the apts will be an easy build, 87k SF of retail for that intersection seems like a major hurdle to jump though - although if it happens the intersection could turn into a real hotspot between all the apts, neighborhoods, current office, CCP, and the subway stop. I'm curious what kind of rents they're underwriting for the retail and office. On the $300M price 60% LTV construction loan with no Mezz means they need $120M in equity to get this going, not to mention 50% preleasing on the office and who knows for the retail. Has parkway done deals of this size in the past? If so, then they should be plenty capable.
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