Mesa Development LLC principal Richard A. Hanson is the first toadmit that circumstances broke in Mesa Development's favor. Andalthough pre-sale requirements increased from 35%, sales recentlyhit 60% for units that won't be available until 2004.
Hanson says he already took back about a dozen units from"multiple" – read investor – purchasers and there werecancellations after Sept. 11. "There was a lot of paranoia," Hansonsays. "But 90% of the buyers reaffirmed their contracts. Ourtraffic has slowed, but our sales didn't change."
Financing for the $250-million project was secured earlier thismonth. It had already included "a large chunk of equity" and a loanfor land acquisition, Hanson says, as well as a mezzanine loanwhile a construction loan was being syndicated.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
