Viewing a single comment thread. View all comments

g11235p t1_jbzxg8w wrote

I’m so confused about what all the downtown development actually is. None of these places ever seem to get built, even though the planning board seems to work overtime to approve all of it. Is it just that all this shit is going to happen eventually, or do the developers somehow make money off of getting the approvals and never doing anything?

9

Ironboundian t1_jbzzy8u wrote

yes they do. I don't think it applies to this particular Hanini project....but especially the big towers with hundred and hundreds of residential units....if a developer gets a large project approved, even without building it they are likely making money (getting a new appraisal, and refinancing out some money from the higher valuation).

5

Newarkguy1836 t1_jc4wozk wrote

You figured it all out at the end of your post. A lot of these developers are scum with no intention of building anything. You buy a plot of land for a million dollars in downtown, propose a 50 story Skyscraper the city can only dream of. The city enthusiastically approves the project. Now the land explodes in value at the very least because of the potential. Now they sell the land for many millions more based on the new speculative value of what has been approved.

4

SkyeMreddit t1_jc2ljs9 wrote

Some get built eventually but it can take several years between planning board approvals and construction financing and permits. Especially if they redesign it again. Those eventually happen, but COVID messed things up.

For others, yes they are scheming to get wealthy without having any actual plans to build. Buy a forgotten site for like $250K, put together plans and get planning/zoning approval for a big tower, and then sell it for $5 Million saying “Fully Approved for a 25 story tower”

3

Newarkguy1836 t1_jc4wyl2 wrote

I wish I saw your post earlier. Would have saved me the effort. LOL

4