Board should be sacked, agree, but won’t matter because it’s not a real business. It’s a govt welfare program. Even still they managed to over-lever assets and fail to operate sustainably.
In best of times HF could barely do its job. Faced with severe market turbulence the total lack of governance was laid bare.
@moseskagan@kirkbyers Not unique to LA. Similar concerns up and down the west coast. We invest nationally with a focus on MF and deal flow is markedly lower on the west coast. Meanwhile closing in the mid Atlantic, SE, TX etc.
@kirkbyers@moseskagan You have to attract investor capital. A deal in LA has to be extraordinarily compelling now as an offset to the political risks. investors can and will go elsewhere.
In an ideal world you go from a construction loan directly to a perm loan.
But debt is based on time.
And that timing doesn’t always workout.
So at times you have to get a bridge to get to the perm.
Take out your construction loan, cheaper debt, and buy yourself time.
One of the most competitive spaces in the debt market.
@KATUNews To city council hammer heads, everything is a nail. Drunk on power, they believe their job is to make rules and regulations. The job of good government is to protect our freedoms. We are so lost.
Agreed. Makes ZERO sense. Portland hotels are collapsing from lack of demand relative to existing supply. No rational investor would BUILD a new hotel in PDX today. You can buy any hotel you want for a fraction of the cost to build one. Simultaneously there are at least two new concert venues currently under construction. ??????
More BS politics from our BS city govt. Notice how the jobs being “saved” are carefully selected to elicit support: police and parks. A prudent budget would fund those jobs in the first place and cut elsewhere. The article does not explain what we lose. I guess we get a little bit less “clean energy”.
You aren’t wrong, but it’s more than that. It’s the taxes. Portland and Mult Co have ridiculous taxes both corporate and personal that are easily avoided by moving your business or you home across the river or the county line. Homeless/drugs have been rough on downtown but the impact is amplified when normal folks have moved business and homes out to the suburbs to escape taxes
@SimpleCRE The problem is the current rents are (often) way above market. So yes, you caveat with “right cap rate” but it could be an astronomical cap rate on contract rent to get to a reasonable cap rate on market rent