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Chinese Target U.S. Homes
Lennar Corp., LEN +0.80% one of the U.S.’s largest home builders, is in talks with the China Development Bank for approximately $1.7 billion in capital to jump-start two long-delayed San Francisco projects that would transform two former naval bases into large-scale housing developments, according to people familiar with the discussions.
The negotiations aren’t final and the financing arrangement could still fall through. But if completed, the deal would reflect a changing dynamic between the U.S. and Chinese economies, as an American company turns to China for help funding a long-delayed and partially publicly funded project that otherwise wouldn’t get done.
The developments, Treasure Island and Hunters Point Shipyard, also have the potential to alter San Francisco’s housing market by providing nearly 20,000 new homes, a sports arena and millions of square feet of office and retail space in a market that is land-constrained and has had limited new construction. The city has committed hundreds of millions of dollars, in the form of tax-increment bonds, to the projects, which in total are expected to cost $10.5 billion over the next few decades.
In recent years, Chinese state money—in large part provided by CDB and its counterpart the Export-Import Bank of China—has been pivotal in funding major infrastructure and resource projects around the world, but the bulk of that activity has been in developing countries in Africa, South America and Asia.
Boobie the Rocket Dog
June 26th, 2012
Bit of a stretch calling San Francisco the “U.S.” these days.
Genl Ripper
June 26th, 2012
I used to work in the millwork/ door/ window biz in Florida during & after the runup to the bubble bursting in Aug 2005. I had the misfortune of landing Lennar as one of my clients. KB Home too.
Talk about Sheetrock Shitholes. They banged those cribs out like they were using a damn cookie-cutter. Their warranties were a joke.
Other than my company (we were good at turning out quality product at a low price and yet still make a decent profit), the rest of the subs that Lennar, Centex, KB Home would hire were the lowest of the low. Shoddy workmanship, crap materials.
I would be doing field measures at a subdivision and could barely hear myself think with all the noise from compressors, hammers, saws, etc. But as soon as word spread that “La Migra” was on its way (and the illegal aliens were ALWAYS tipped off), the damn place became a ghost town within one or two minutes.
Then try and get your invoices paid by these friggin’ GC’s! Good luck. They came up with every excuse in the book to not pay – the super didnt sign off on it, the clerk handling that section is out on vacation, out sick, he’s on maternity leave, she’s got prostate cancer – it was fuckin’ endless.
I didn’t endear myself to KB Home when I said they should market a new line of affordable housing to the young urban hiphop demographic – KB KRIBS.
Stranded in Sonoma
June 26th, 2012
@Genl Ripper — I think they built the house I live in. We overlooked a few things because of the bargin at the time.
The house is slightly out of true; the west wall is a bit short in the the northwest corner. So the north wall has to bend outward about 2″ within 25 feet or an internal adornment will look out of place. Later, we found that when the sprinkler system is turned on, you can hear the pipes rattling (almost “humming”) in the walls. Neighbors say the same thing happens to them.
There is a litany of other items but you get the drift. Our realtor said it was “Have Hammer, Will Travel.”
Racist
June 26th, 2012
I wired a shitpot load of KB and Fortis and Cimmaron homes back in the day, and also did vinyl; siding for a stretch. In any given house, You could climb up in the rafters and shake back and forth, and make the whole house sway from side to side!!!
richie b
June 27th, 2012
lennar home/sheds had FAR MORE destroyed homes in hurricane andrew way back when right next to other subdivisions that had very little damage compared to the shit houses built with shit labor and shit materials by lennar….
just see whydioncha if nancy ckes dint have sumpin to do with taking the naval property for her own sweetheart deal–SEXXIIIISSSTTTT…
[sometimes the meds wear off before i can get to sleep]