Quote:
Originally Posted by Baronvonellis
Why would hippies be against an 5 story building? I thoght they would be for green developement? Wasn't there that song about paving paradise and putting up a parking lot? A strip mall would be the proverbial parking lot that they used to hate so much.
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I wasn't there, but they could have built a 5 story building on that site, as of right. My guess it wasn't a big enough five story building and the developer wanted larger condos to maximize his profits. Even then I don't think that is what stopped it. It was more than likely the $7,500,000 mortgage.
The reason people build strip malls is that they get the maximum sqft rent for the minimum sqft building cost.
If this guy gets $20/sqft NNN, the project will have paid for itself in 7-8 years including the land cost. After that it is a money pump.
If he adds rental residential on it, it'll take 15 years to pay off just the additional construction cost.
Back when mortgages flowed like water, you could add on condos using the banks money, and get out of them in a couple years. But those days are gone.