Quote:
Originally Posted by ardecila
The fact that "Total Development Cost" is capitalized makes me think this is a calculated number for government housing purposes, and not the true overall project cost. I would not expect construction costs for this building to be substantially cheaper than other, similar buildings in Chicago or New York.
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Just how accurate are these numbers, generally? A lot of the proposal process is essentially marketing. I sort of assume any big round number is (necessarily) ballpark and likely is nudged up or down to serve certain strategic rationale(s). $700 does seem kind of low to me, but I also don't take that number all that literally.
Vista was quoted as being $1B. It's a big round number that also happens to potentially add to the prestige of a building trying to move $25M properties. Their construction loan was only $740M — even if that isn't all the capital on the books the proposal number still seems a little juiced.
Basically, could we actually be comparing buildings that are cost more like $740M and $900M? Costs start to sound less out of line if so.