Question for those on the debt / equity side. Have you ever crossed a development proforma with an alarmingly padded General Conditions? I’m talking 2-3% of total project capitalization on a $150m deal. The u/w is very sound otherwise and the deal is quite attractive, however, between General Conditions, a 3.5% Development Fee, and a 2.5% Construction Oversight Fee, it looks like quite a bit for the sponsor.
Trending Content - Real Estate Forum
Career Resources
Developer here, never seen that before. Our development fee (3%) is our general conditions + profit + guarantee backstop. CM fee usually at 2% of HC. Are they getting a piece of the promote also?
They will share in promote. Keep in mind this is a very large international developer so I would not be surprised if they do have higher than usual overhead.
Accusantium dolorem non nulla rem. Vitae accusamus ipsam sequi aut eaque commodi. Doloribus rerum inventore illo sed. Quas blanditiis ratione ratione distinctio quis mollitia.
Aut alias minima quaerat et. Voluptas unde est hic. Nemo aut et ut. Porro sequi doloribus explicabo atque reprehenderit. Dolor enim iure placeat deleniti eaque similique.
Explicabo architecto quo consectetur quidem necessitatibus. Et molestiae sed quaerat voluptas.
Voluptatibus voluptatem quos ex fugiat iste. Sequi consequuntur veritatis voluptas culpa repellat impedit. Ut non rerum quos autem aut doloribus. Ipsum animi voluptatem sunt exercitationem. Asperiores repellendus dolore voluptates doloremque necessitatibus unde.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...