Better not building at all than starting and not finishing like this building in Bangkok during the Asian financial crisis…
This site deserves a supertall, Personally I would prefer a massive office building rivaling those at the WTC site but I’d settle for any supertall right now. Downtown needs more supertalls.
Agreed. Odd to think there have only been 4 downtown, and two of them are replacements for another.
45 Broad is a saving grace but we need this too.
Oh I completely agree. I don’t suggest anyone build without money or tenants lined up. Those ghost cities are prime examples of money down the drain. I just think it’s unfortunate that this current opportunity for 80 south seems to be a no go
China Oceanwide’s problems appear to be quite serious. The company has booked $11.4 billion of development costs as a “current asset,” an amount that represents 88.5% of its total inventory balance. In other words, 88.5% of its real estate-related inventory is comprised of unfinished or not-even-started buildings. This is especially concerning given that 99.8% of the company’s inventory is real estate-related. At the same time, Chairman Lu Zhiqiang has used his company’s money to purchase more than $120 million in California real estate in some sort of play to shift assets overseas before the bottom falls out. I could go on but don’t want to bore people. I hope someone comes along and grabs this site away from them. If One Seaport is any guide, that area with the right building should not have a problem selling out in short order.
Anyone know if they are still progressing at the oceanwide center in SF?
they are, though progress is slow. They are not out of the ground yet. They did bring in a tower crane, so it stands to reason it will progress.
The company purchased the site of the San Francisco tower for $300 million in 2016 from a private equity firm that paid $113 million for it only two years prior. This development is supposed to be the most expensive construction project in San Francisco with an estimated cost of $1.6 billion. Oceanwide began construction towards the end of 2016 but a Curbed article from early 2018 called the project “little more than a dream, a smile, and a pile of construction equipment.”
I don’t see how they could secure construction loans for the project, given their current situation??
There are apparently several serious accounting red flags in their books and the conglomerate has a very opaque structure. While it had previously enjoyed seemingly unlimited access to credit for reasons I cannot explain, the good times appear to be over. The S&P has a CCC+ rating on the conglomerate’s principal operating entity and recently referred to its capital structure as unsustainable.
Hard to figure out what they were thinking.
I hope Oceanwide doesn’t retain this property. I want to see something materialize before another recession sets in. It would suck if this project gets shelved through another one, and it seems like Oceanwide might be content with doing exactly that.
Oceanwide is recapitalizing. I hope they sell the assemblage.
aaaaaand there it is.
Cushman & Wakefield’s Adam Spies has been tapped to market the site. He didn’t respond to requests for comment.
Sources said that only five firms have been approached to bid on the property. Those five firms couldn’t be confirmed by press time.