Re: Gulfstream in Jeopardy - I Talked To a Guy Who Knows A Guy Who Talked to a Guy (394 Views)
Posted by: Silver Charm (IP Logged)
Date: January 22, 2025 01:23PM
Appreciate the feedback. And the conversation. Bear with me or my perceived tone....its all good.
I drove by Calder Casino after a recent Dolphins game and was surprised to see that it was a Casino. That it still existed. There might have been 40 or 50 cars in the lot. Some one told me Brunetti (the Son) had sold some of the Hialeah Property for commercial development. So the physical plant isn't the same size it once was. And whatever is there could be infested with God knows what. I don't mean the Parking Lot Casino building.
No Lender or PE Group is going to invest a $100,000,000 to upgrade a plant (construction costs are thru the roof down here now) in a business that is experiencing declining revenues, has 3%-5% profit margins and the land play is slum land. People on those Slots might be pumping $5K a day in quarters per machine. You may as well go build a Beach Resort Hotel in Haiti and see how that works out.
As far as Stronachs property here is how it works. You buy a 5-6 acre block for $75M-$80M. You get permits to build TWO 30-32 story Towers (the building has to go UP) adjacent to each other with Construction Costs around $300M. There would be 8 floors of parking attached in the back. Your Soft Costs and Sales Commissions run about $75M and each Building has 150 units (5 per floor). You sell the 300 Units for an average of $2,000,000 per and gross $600,000,000. That would net as much as $100M or more. Lenders and Institutional Investors are all over this.
Outfits like Blackrock, State Street and Prudential have a combined nearly $20 TRILLION (that is Trillion with a T) of Institutional Money under Mgmt. It is not as easy as one think thinks to find places to invest that much money. The State of Florida needs to step in with some type of support. And somebody has to come up with a bigger development plan. An entire community that has to include a new Race Track Casino with Sports Book and everything.
The buzzards are circling Gulfstream. Developers smell profits. Somebody with vision needs to step up. Stronach was right he just ran out of Capital. But he always had the Land Play as a Safety Net.....
I drove by Calder Casino after a recent Dolphins game and was surprised to see that it was a Casino. That it still existed. There might have been 40 or 50 cars in the lot. Some one told me Brunetti (the Son) had sold some of the Hialeah Property for commercial development. So the physical plant isn't the same size it once was. And whatever is there could be infested with God knows what. I don't mean the Parking Lot Casino building.
No Lender or PE Group is going to invest a $100,000,000 to upgrade a plant (construction costs are thru the roof down here now) in a business that is experiencing declining revenues, has 3%-5% profit margins and the land play is slum land. People on those Slots might be pumping $5K a day in quarters per machine. You may as well go build a Beach Resort Hotel in Haiti and see how that works out.
As far as Stronachs property here is how it works. You buy a 5-6 acre block for $75M-$80M. You get permits to build TWO 30-32 story Towers (the building has to go UP) adjacent to each other with Construction Costs around $300M. There would be 8 floors of parking attached in the back. Your Soft Costs and Sales Commissions run about $75M and each Building has 150 units (5 per floor). You sell the 300 Units for an average of $2,000,000 per and gross $600,000,000. That would net as much as $100M or more. Lenders and Institutional Investors are all over this.
Outfits like Blackrock, State Street and Prudential have a combined nearly $20 TRILLION (that is Trillion with a T) of Institutional Money under Mgmt. It is not as easy as one think thinks to find places to invest that much money. The State of Florida needs to step in with some type of support. And somebody has to come up with a bigger development plan. An entire community that has to include a new Race Track Casino with Sports Book and everything.
The buzzards are circling Gulfstream. Developers smell profits. Somebody with vision needs to step up. Stronach was right he just ran out of Capital. But he always had the Land Play as a Safety Net.....
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