We all know that Jay-Z and 50 Cent made by far, so much money last year. They got Arab Money for god’s sake! Unfortunately, regardless of how much cream you have, it is always beneficial to take money out in loans to finance your project. The main reason is that you can offset the cost of development and still keep your own cash flow.
Fortunately for Jay-Z, Charles Blaichman, the real brains and muscle behind the work, had to put up most of the cash. For the most part Jay-Z is going to get the brand, J Hotels. I am not so sure how effective it will be, but they want to take on the area of the west side. They bought it for $66 million, but would need a total of $370 million to get the un-developed land erected. So much, so far, this project might never happen with real-estate and construction in New York City in the lowest in over 10 years.
Good luck J.
