Comment 79282

By jonathan dalton (registered) | Posted July 06, 2012 at 11:32:56

I tend to think of the Acclamation Lofts as the street's milestone: new, privately funded residential development that departs from the standard script we're used to seeing (bare-bones market-level rental units that make up the bulk of downtown residential stock).

I would see it the other way around. Acclamation will likely want 70% presales before construction begins as that is usually the condition for funding. Beume is willing to go ahead with 70% leasing, which amounts to a much lesser cash commitment, leaving the bank to finance for a longer term.

Once a condo is bought, the developer gets paid on completion. If the market tanks, the buyers have to eat it. Leased space leaves the building owner / developer prone to market fluctuations. I can only see a leased development as harder to pull off, and thus a stronger sign of improved economics in the area.

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