Developers Struggle with Securing Financing for Mega-projects
Despite record-low interest rates and programs like EB-5, some developers are having a hard time finding funding for their mega-projects.
"Financing is not easy," Silverstein Properties CEO Marty Burger says. "These are really ridiculous numbers." His company is looking to close on a $2.2B construction loan for 2WTC, which also is looking to secure $500M from EB-5 investors.
Related's $20B Hudson Yards project is also finding trouble securing construction financing. Related's Jeff Blau argued that increased regulatory pressure makes it difficult for banks to originate billion-dollar loans. And financing outside the banking system is more expensive but more flexible.
Related turned to an $850M loan from the Children's Investment Fund and $1.5B from a syndicate led by Bank of China and Deutsche Bank. Not to mention EB-5. [TRD]
