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Elevate Condos (1333 Weber St E) | 15, 15, 12 & 12 fl | U/C
I am no expert in this. Would this offer for sale be something that a number of developers would want to jump in on ? Is there money to be made considering a number of the units are already in locked contracts of purchase ? It will be very interesting.

I guess the upside is, building permits are already in place, drawings in place, construction n place... I fear the new contractor may have to pay the vendors up front until there is some trust built up.
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Is it still a $1 asking price? Smile
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(01-10-2024, 12:38 PM)Rainrider22 Wrote: I am no expert in this. Would this offer for sale be something that a number of developers would want to jump in on ?  Is there money to be made considering a number of the units are already in locked contracts of purchase ?  It will be very interesting.

I guess the upside is, building permits are already in place, drawings in place, construction n place...  I fear the new contractor may have to pay the vendors up front until there is some trust built up.

I expect there is an opportunity there. How good it is, it's impossible to judge without the details.

The new vendor's payment terms will surely be based on that vendor's financial stability and credit history rather than tying it to the specific building.
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(01-10-2024, 12:38 PM)Rainrider22 Wrote: I am no expert in this. Would this offer for sale be something that a number of developers would want to jump in on ?  Is there money to be made considering a number of the units are already in locked contracts of purchase ?  It will be very interesting.

I guess the upside is, building permits are already in place, drawings in place, construction n place...  I fear the new contractor may have to pay the vendors up front until there is some trust built up.

The units were sold for much lower than the cost to build. Whoever buys it will cancel the purchase agreements and do rental
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(01-11-2024, 01:08 PM)IronDev Wrote: The units were sold for much lower than the cost to build. Whoever buys it will cancel the purchase agreements and do rental

Why would they have done that? Because they had no idea what construction actually costs?
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(01-11-2024, 05:32 PM)tomh009 Wrote:
(01-11-2024, 01:08 PM)IronDev Wrote: The units were sold for much lower than the cost to build. Whoever buys it will cancel the purchase agreements and do rental

Why would they have done that? Because they had no idea what construction actually costs?

I'm sure some of it was failing to properly project all their costs, but they'd have margin for that. My guess is what pushed them over the edge was inflation, they likely failed to get costs locked in with suppliers before selling.
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See pages 5-6 of this very thread talking about it being a developer without the experience for this scale of project. Probably some truth in there given the outcome.
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