This would be cost prohibited. The commercial building codes make this a bad business decision. On the other hand, one million units was last year's demand and 2 million units were delivered. Those of us in construction smell a rat. Something very nefarious is up and if they start converting offices into dwelling units, it will be conformation
Every one of these 4-8 story apartment buildings we're working on are getting some kind of government funding. It's like one big ass scam and none of us can figure out how they're going to make their numbers. When you take total project cost, factor in almost 2 years from securing funding to going vertical, the return can't be higher than 8% if it finished on time and on budget. Most of these projects are so poorly managed you wonder if they're ever going to make payments to the lending institution. These apartments are so high end they have custom home type finishes. Granite countertops, full tile tub and showers, high end cabinets, high ceilings, amenities areas and very classy interior trim. A few years ago these buildings would be close to completion and a REIT would come buy them virtually sight unseen. They typically don't fill up and the people living there never leave. It's some really strange shit
It's money laundering through various different layers probably. They probably prefer higher end so they have margin to account for loss, they are fronts for construction and money is ending up in the pockets of people without legal liability...then the companies fold up and get their debt handled in bankruptcy
This would be cost prohibited. The commercial building codes make this a bad business decision. On the other hand, one million units was last year's demand and 2 million units were delivered. Those of us in construction smell a rat. Something very nefarious is up and if they start converting offices into dwelling units, it will be conformation
Every one of these 4-8 story apartment buildings we're working on are getting some kind of government funding. It's like one big ass scam and none of us can figure out how they're going to make their numbers. When you take total project cost, factor in almost 2 years from securing funding to going vertical, the return can't be higher than 8% if it finished on time and on budget. Most of these projects are so poorly managed you wonder if they're ever going to make payments to the lending institution. These apartments are so high end they have custom home type finishes. Granite countertops, full tile tub and showers, high end cabinets, high ceilings, amenities areas and very classy interior trim. A few years ago these buildings would be close to completion and a REIT would come buy them virtually sight unseen. They typically don't fill up and the people living there never leave. It's some really strange shit
It's money laundering through various different layers probably. They probably prefer higher end so they have margin to account for loss, they are fronts for construction and money is ending up in the pockets of people without legal liability...then the companies fold up and get their debt handled in bankruptcy
They converted hotels first because they had most amenities in my city