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Joined: 01/01/2005
Posts: 2,253
Likes: 1,034
KeithHokie89

COVID certainly played a part. The demand for office space plummeted.

Historic construction inflation and rising interest rates. All of that will wreck a pro forma. Walking away was probably the smart play. However, the terms of the deal were poor to begin with, but once that deal was signed, they were between a rock and a hard place. Following through would have saddled them with a ton of unneeded office space and a long term lease.
Posted: 06/15/2023 at 06:10 PM ET
(In response to this post by HokieForever)

Thread Replies (31)

Full Thread →
I have a question for anyone who can give me context on this major screwup>
HOKIERIT • 06/15/23 09:24 AM ET
The $73M is just the exit fee...I am guessing the total spend is more.**
BleedinOandM • 06/15/23 01:52 PM ET
I can shed some light on this and answer most of the questions below.
KeithHokie89 • 06/15/23 01:27 PM ET
Thanks for the clarification KH89. I did know it was VCU Health and not ->
HOKIERIT • 06/15/23 08:30 PM ET
Hey Keith...not sure how long you've been there but
tylerhokie • 06/15/23 06:44 PM ET
Nope**
KeithHokie89 • 06/15/23 08:16 PM ET
Let’s hear it for the VCU School of Dentistry whom annually turns out
DonHo-kieHi • 06/15/23 05:45 PM ET
It's a good program despite the obsolete buildings.**
KeithHokie89 • 06/15/23 06:41 PM ET
My dumb questions
HokieForever • 06/15/23 03:56 PM ET
COVID certainly played a part. The demand for office space plummeted. ◄
KeithHokie89 • 06/15/23 06:10 PM ET
Too soon KH...you needed to let us continue with our assumptions for
Tuckahokie • 06/15/23 02:59 PM ET
Everybody should read the above post.......
2hhoop3 • 06/15/23 02:19 PM ET
There are similarities with the Diamond District development, however,
KeithHokie89 • 06/15/23 02:59 PM ET
More good info.......
2hhoop3 • 06/15/23 03:26 PM ET
So they had to pay a penalty to the developer for not signing a lease
Vienna_Hokie • 06/15/23 02:13 PM ET
The developer reduced the size of the project in response to the health
KeithHokie89 • 06/15/23 02:53 PM ET
The law school thing was kind of a joke...
Vienna_Hokie • 06/15/23 05:00 PM ET
It's hard to believe but I don't think the city did anything wrong
KeithHokie89 • 06/15/23 06:14 PM ET
I do not know........
2hhoop3 • 06/15/23 06:54 PM ET
Seems to me.........
2hhoop3 • 06/15/23 05:55 PM ET
That's a very accurate assessment.**
KeithHokie89 • 06/15/23 06:12 PM ET
VCU...Keeping it Real**
Tuckahokie • 06/15/23 11:10 AM ET
Here is another VCU screw up, but on a smaller scale.**
Guy LeDouche • 06/15/23 10:50 AM ET
City of RIchmond--enough said.**
vthhhi • 06/15/23 10:31 AM ET
Not sure all the info......
2hhoop3 • 06/15/23 10:21 AM ET
It's only money. **
HokieGator • 06/15/23 10:08 AM ET
I would be curious how they spent the $425million loan, considering it
Guy LeDouche • 06/15/23 10:46 AM ET
Rat hole…….**
RJHokie • 06/15/23 11:10 AM ET
Students and recent alum HATE VCU President Rao.
GOHOKEE • 06/15/23 10:06 AM ET
Old news doug wilder blasted rao said he should be fired**
HokieJamie • 06/15/23 10:06 AM ET
Here are details about the situation
hoosnowahokie • 06/15/23 09:53 AM ET
Doubt their alumni will be ready to stroke them checks for any future...
EDGEMAN • 06/15/23 09:31 AM ET