I don't profess to know first hand, but I know a LOT about getting real estate projects off the ground. The reason Sudweeks didn't get Santee built was too much OPM (other people's money), not enough of their own. $50,000 & $25,000 VIP memberships and "stock options" are examples that they didn't have much skin in the game. Without their own money on the line, lender's won't lend on projects (If the deal doesn't work out, the developer has less to lose by just walking away). This is especially true now but always is a rule of thumb by lenders. Without equity and without a lender, it is obvious why Sudweeks didn't meet any of the performance time frames (construction start, etc.) of the Santee approval. I will give them due credit for getting the approval in Santee, no easy feat. But in these times, that alone is not enough to to attract equity, obtain financing, attract board shop & restaurant tenants and get a project built.
Last edited by ottog1979; 09-26-2011 at 10:37 AM.