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  #1041  
Old Posted Jan 31, 2019, 3:01 AM
Mr Roboto Mr Roboto is offline
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Originally Posted by marothisu View Post
I think they'll be around for awhile and they have nicely evolved into something that's increasing overall around the world rapidly. Their revenue last year was $10.5B. Just 5 years earlier in 2013, it was barely over $3B. Their revenue has over tripled in just 5 years. Tons of major companies use them - Amazon, Facebook, AT&T, American Express, Coca Cola, Deloitte, Delta, Ernst & Young, Honeywell, Intel, Kellogg's, Merck, NBA, NBC, Nike, Oracle, Siemens, Toyota, US Bank, etc many more.

You could argue about like 20 years from now, but a company that increases their revenue by over 3X in just 5 years? Come on.
You sound more optimistic, but you're probably right then that whether it's over valued or not it should last at least through construction of this building, which is all I really care about anyways.
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  #1042  
Old Posted Jan 31, 2019, 3:08 PM
LouisVanDerWright LouisVanDerWright is offline
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Originally Posted by Mr Roboto View Post
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.
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.

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Originally Posted by Mr Roboto View Post
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.
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.
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  #1043  
Old Posted Jan 31, 2019, 4:23 PM
Investing In Chicago Investing In Chicago is offline
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Salesforce is as legit as Oracle, Microsoft, IBM, SAP, Adobe. That is the company they keep...It's really odd to read a question about Salesforce's legitimacy, that's how legit they are.

I work at Oracle, know Salesforce very well (my wife works there), they are well on their way to being a $20B revenue company.

Last edited by Investing In Chicago; Jan 31, 2019 at 5:07 PM.
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  #1044  
Old Posted Jan 31, 2019, 5:00 PM
the urban politician the urban politician is offline
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Originally Posted by Mr Roboto View Post
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.
No, that's not how it works.
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  #1045  
Old Posted Jan 31, 2019, 7:46 PM
Mr Roboto Mr Roboto is offline
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Originally Posted by LouisVanDerWright View Post
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.
Makes sense. Thanks for the response.
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  #1046  
Old Posted Feb 14, 2019, 3:05 AM
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jpIllInoIs jpIllInoIs is offline
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Did i miss something?

From Real estate Journal
The 1.2-million-square-foot Salesforce Tower, now under construction at the Wolf Point development, will offer approximately 700,000 square feet of downtown, Class A office space after the tech giant moves into its 500,000 square feet space in 2023.
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  #1047  
Old Posted Feb 14, 2019, 3:11 AM
Skyguy_7 Skyguy_7 is offline
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^ Nope. Just 2019 journalists being journalists....
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  #1048  
Old Posted Feb 14, 2019, 8:04 AM
TallBob TallBob is offline
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That's a pretty nice bit of news for DT....leasing activity is very strong Year over year!
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  #1049  
Old Posted Feb 14, 2019, 3:22 PM
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Quote:
Originally Posted by jpIllInoIs View Post
Did i miss something?

From Real estate Journal
The 1.2-million-square-foot Salesforce Tower, now under construction at the Wolf Point development, will offer approximately 700,000 square feet of downtown, Class A office space after the tech giant moves into its 500,000 square feet space in 2023.
fake news
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  #1050  
Old Posted Feb 14, 2019, 5:02 PM
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r18tdi r18tdi is offline
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Originally Posted by Skyguy_7 View Post
^ Nope. Just 2019 journalists being journalists....
RE Journals is especially worthless considering they basically just rewrite press releases. Safe to assume they were fed bad info
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  #1051  
Old Posted Feb 14, 2019, 6:00 PM
Vlajos Vlajos is offline
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Quote:
Originally Posted by LouisVanDerWright View Post
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.
Not to nit pick too much, but the Construction Lenders don't disburse all the funds into escrow at closing. That would be a colossal waste of money in terms of interest carrying costs. The Developer would not want that either. The Bank (or Bank syndication) disburse (to escrow at the title company) on a draw by draw basis, while monitoring construction. The Lender very likely requires all equity (or mezzanine financing potentially) be disbursed prior to their funds though.
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  #1052  
Old Posted Feb 14, 2019, 7:55 PM
the urban politician the urban politician is offline
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Originally Posted by Vlajos View Post
Not to nit pick too much, but the Construction Lenders don't disburse all the funds into escrow at closing. That would be a colossal waste of money in terms of interest carrying costs. The Developer would not want that either. The Bank (or Bank syndication) disburse (to escrow at the title company) on a draw by draw basis, while monitoring construction. The Lender very likely requires all equity (or mezzanine financing potentially) be disbursed prior to their funds though.
^ Really?

This would suggest that lenders could still back out mid-construction and leave a project hanging. Even with a contractual obligation, it's certainly possible.

Wouldn't that create a lot of uncertainty?
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  #1053  
Old Posted Feb 14, 2019, 7:56 PM
Vlajos Vlajos is offline
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Originally Posted by the urban politician View Post
^ Really?

This would suggest that lenders could still back out mid-construction and leave a project hanging. Even with a contractual obligation, it's certainly possible.

Wouldn't that create a lot of uncertainty?
Yes, that is how construction lending works. And no, there is a construction loan agreement, a legal agreement to fund based upon certain parameters. Of course Lenders can default, though extremely rare.
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  #1054  
Old Posted Feb 14, 2019, 8:04 PM
tjp tjp is offline
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^ Right. Some construction loan agreements will require a certain level of leasing / sales before funding, but I highly doubt that's the case for this development considering it already has an anchor tenant.
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  #1055  
Old Posted Feb 14, 2019, 8:16 PM
Vlajos Vlajos is offline
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Originally Posted by tjp View Post
^ Right. Some construction loan agreements will require a certain level of leasing / sales before funding, but I highly doubt that's the case for this development considering it already has an anchor tenant.
Certainly, pre sales are a requirement in a for sale project. Like all lenders, Apartment lenders want to be fully repaid, and you don't get repaid by not having a finished building, so there is very little incentive to not fund (unless of course the developer is in default).
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  #1056  
Old Posted Mar 9, 2019, 9:56 PM
PittsburghPA PittsburghPA is offline
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  #1057  
Old Posted Mar 9, 2019, 11:03 PM
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maru2501 maru2501 is offline
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hmmmmmmmm
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  #1058  
Old Posted Mar 10, 2019, 12:14 AM
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Is soil testing 10 months before start date normal? Could they be starting sooner?
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  #1059  
Old Posted Mar 10, 2019, 1:07 AM
The Lurker The Lurker is offline
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They were soil testing periodically for what seemed like a year at 1 S. Halsted before construction started
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  #1060  
Old Posted Mar 10, 2019, 9:44 PM
Goose Island Guru Goose Island Guru is offline
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Is soil testing 10 months before start date normal? Could they be starting sooner?
Yes, normal to allow proper time for geotechnical and structural engineering ahead of bid and permitting.
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