Cancelled projects?

[interchange42]

Dude, you sat through a 'Mortgage 101' digression, and then nitpick about why a 'cancelled project' was cancelled?

<shakes head>

Actually, I wasn't reading this thread when those posts were current. I was just trying to get the thread back on topic when I did go through it. And it worked.

Someone actually questioned a moderator - and did so with attitude.

Ehhh, I can take it.

someone's going to get in trouble...

RRR would have to have been nastier than that. No problem.

Shh, why are you whispering?

They were whispering 'cause it's funnier. Best to keep things light.

In regards to Chicago and Vancouver's bad news, I don't expect those city's troubles to have much of an effect here. Toronto's condo market seems to be a bit of a uniquely strong beast, and while it'll not be immune from the downturn, whatever problems we have will be homegrown. I'm not sure what percentage sales the postponed Vancouver projects were boasting, but to read that the Chicago Spire's sales were 'brisk' at just 30% is a laugh: next to nothing goes up here until 60 to 70 per cent of the units are sold, so we'd never have a Chicago Spire situation in the first place. If 30% is brisk for Chicago, no wonder they are experiencing financial difficulties now.

42

 

[interchange42]

A little related news from across the pond...
**************************************

U2 tower falls victim to Irish recession
Last Updated: Friday, October 31, 2008 | 4:54 PM ET
CBC News
Twisting design for U2 tower was chosen after an international competition. The project has been shelved.

The U2 Tower, which was to be the tallest building in Ireland and home to recording studios for the Irish rock band, has been shelved.

It's among the latest victims of the economic downturn, which has sent Dublin property prices into a slide.

The Dublin Docklands Development Authority, which was behind the development, said Friday it has suspended plans for the tower but remains committed to building it.

The 120-metre tower was designed by Irish architects Burdon Craig Dunne Henry, which won an international competition with a twisting 30-storey design. The estimated cost was $308 million Cdn, spearheading a plan to revitalize the city's docklands.

An egg-shaped pod housing a studio for Irish supergroup U2 would have been installed on the upper floor and apartments in the building would have sold for more than $1 million.

Lead singer Bono, guitarist the Edge, bassist Adam Clayton and drummer Larry Mullen were partial owners of a development consortium awarded the construction contract last year.

The tower project was not universally popular in Dublin, despite its association with U2. Conservationists decried the height of the tower and some Dubliners said it would spoil the character of the city.

Ireland is the first of European country using the euro to fall into a recession and property prices have rapidly dropped after a 10-year boom.

If the project is revived at a later date, it is likely to be more modest.

The members of U2, among Ireland's wealthiest citizens, own several Dublin properties, including a riverside hotel that is also slated for a makeover.

With files from Reuters, Associated Press

 

[Glen]

Trump Tower..in doubt.

 

[Roy G Biv]

Trump Tower..in doubt.

Link?

 

[urbandreamer]

In doubt because the Donald may be seeking chapter 11 again?

Why not give these guys a call?:

http://www.hotfrog.ca/Companies/Talon-International-Development

 

[yyzer]

nothing more boring than Trump trolls.....the one who is "in doubt" is "Glen"..

 

[lowesthangingfruit]

Several reasons projects which haven't broken ground, yet might be 70% sold, could get cancelled include:

- a desire for a buyer to back out because (s)he feels current market value is lower than what was paid

- the asset they plan to sell to pay for the committed purchase has fallen

- the developer can't get financing to build

- higher constrcution costs

So both buyers & builders might be having difficulty.

So which projects seem at risk? I'd suggest 77 Charles & The Saint Thomas seem stalled.

Having just read the discussion in the other sub-forum about this thread being closed then reopened, I think this could be a valid topic for discussion. However, discussion should be based on at least a bit of solid information. I have commented before that I don't think this forum should be for completely uninformed speculation which seems to have just been plucked out of thin air.

Anyone at all can post baseless speculation. I don't think it serves a purpose to have a forum sounding like a group of 14-year-old boys fantasizing, when they actually have no information at all. Sorry if that offends anyone.

Is there any particular reason why the two projects named here would be more likely than others to be "stalled"?

I admittedly have no inside information on specific builders and developers cancelling projects, but from a macro stand point, I find the first posters points to be of real concern.

As for uninformed speculation, I don't get a sense this would be 14 yo boys fantasies (what kind of kid were you if you were fantasizing about this at 14 ??) as it is happening in other markets (ie. look at the M+A markets, private equity markets etc..) and in various parts of the globe.

To wait for hard numbers and data to come out is important to confirm one's thesis but ultimately in the end it is backward looking.

 

[cdr108]

I'll start the list with my number 1

1. Parc Lofts
2. Flatiron Lofts