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The
pre-construction phase is defined by the following matters being
completed:
The
pre-construction phase cannot be considered to commence until the
following condition precedents are met:
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Developer/Sponsor
has site control (purchase and sale agreement, letter of intent or
option contract executed and legally enforceable); and
-
Developer/Sponsor
has the required zoning and construction permitting available.
If a re-zoning is required, then the project is not going to be able
to attract capital investment from qualified institutional buyers
("QIBs") until it does; and
-
Developer/Sponsor
has demonstrated that market support exists for the project.
This is usually demonstrated by an arm's-length market feasibility
study being complete and available; and
-
Developer/Sponsor
has demonstrated the pro forma financial results of operating and
non-operating events that can be realistically assumed to be
attainable has been prepared and verified by third-party reports to
the greatest extent possible.
If you
don't have it, then you need to get it. If you don't know where
you can get these documents then please contact RMC and we'll discuss it
with you and give you some options.
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