Today we took on more meetings to center our vision on what type of financing we could secure, how the Southside, Inc. could help, and wha tour neighbors thought. In that, we met with Abel Sachez at Wells Fargo down the street and basically were told that witout a personal guarantee from all principals we couldnt get the thing done with them. Hypothetically even if we did, the LTV asking was 50% with approx. 6% interest rate.
We also visited with Mike Brennan at Southside, Inc. and received a lot of insight into what we would be dealing with if we developed in the Fairmount District. He scared the socks off of us when he told us how Comerica Bank tore down a older corner to build their trendy design bank down the street from our property, they got chased out of town by the folks on the Fairmount board. They h ad to incur the costs of redesigning their whole building in order to receive any business from their primary target market, OUCH?
All of the busy work require a cool down method right? So John and I headed over to the Cat City Grill across the street from our subject and met with the owner to pick his brain on what he felt about the potential in our land. He was very receptive and mentioned that his restaurant business is very steady and feels like any streetside retail would not do well. After realizing the dying trend for retail on Magnolia, in the back of our head we decided that Office space (medical?) would yield the highest returns to investors. Hmmm? We have not received the plans from James yet, but we are going full speed ahead still.
Good day folks!
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