Developers in trouble?

We've been talking lately about how developers may have to slash prices in order to move some of the inventory they have. In addition, many have construction financing in place which is coming due, or don't even have the necessary funds yet to complete their projects. Extell, one of the largest, if no the largest, has had multiple project with both financing issues and sales issues. They recently... [more]

We've been talking lately about how developers may have to slash prices in order to move some of the inventory they have. In addition, many have construction financing in place which is coming due, or don't even have the necessary funds yet to complete their projects. Extell, one of the largest, if no the largest, has had multiple project with both financing issues and sales issues. They recently launched their crown jewel – Central Park Tower at 217 West 57th St. - but I haven't seen any news of sales (which you would normally expect for a project of this notoriety). Today it was announced that they got an extension on their deadline to obtain construction financing but they still don't have it locked down: https://therealdeal.com/2017/08/29/smi-extends-deadline-for-central-park-tower-financing/ Their prior place of choice for selling debt was the Israeli Bond Market, but Extell bonds were recently downgraded:https://therealdeal.com/2017/08/28/extell-bonds-downgraded-in-israel-but-remain-low-risk/ and it was revealed that the company only was $36 million cash reserves – not enough to carry them through 2018 construction costs. At 1 Manhattan Sq they launched the NY sales Office in November 2016 and immediately announced having 80 sales. In March 2017, they announced they had passed the 100 mark (which seem to indicate only 20 sales in the prior 4 months), and I have not seen any sales announcements since. They also had trouble getting the construction financing there and only obtained it shortly before their 20016 year end deadline. Over at One57, it seems as if only half the units have sold after ?5? years on the market, and the most recent sales are at significantly lower $/SF: “Barnett sold two of 48 remaining units at the 75-story tower, at $3,100 a square foot, compared with $4,900 in 2016.” And 2 of the units recently have had foreclosure auctions announced. Are we seeing the teetering of the biggest developer on the edge of crashing? What about other developers? Certainly we've seen the troubles Thor Equities is having. Others as well? [less]