Lee Plaza hotel to be redeveloped?

[Richard]

X2 How can someone without collateral buy a property for $258,000 and get a $34M loan to rehab it, let alone $200M?

How are you privy to their personal finance information? Come on spill the beans.

There are actually very few recent projects completed downtown if any that are "feasible" short term in our world.

Steve Morris, principal of Farmington Hills-based Axis Advisors LLC and a real estate professor in the Stephen M. Ross School of Business at the University of Michigan, said in order to justify new speculative office construction, the building would have to command rents above $30 per square foot.

But according to data from the Southfield office of Newmark Grubb Knight Frank, the average downtown rent was just $21.46 per square foot per year in the third quarter.

http://www.crainsdetroit.com/article...ngs-face-rehab

Things like this are a little different mentality then buying a house to flip it is really long term speculation and really most likely not see profit until 10 years down the road.