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Originally Posted by The Yen Man
I mean, first off, this magical someone else sounds about as realistic as a unicorn, so I struggle to believe this someone else actually exists.
Second, the Flames will for sure be the primary tenants. Who else in town can guarantee at least 41 nights booked throughout the year? Plus, they'll be leasing the office space, gym facilities, etc. So they will for sure have a big say on how this thing is built, either way.
And lastly, if Plan B was how the city wanted to go about it all along, I fail to see how the Flames wouldn't already be on board. Get a publicly funded arena completely paid for by another party, assume none of the risks of owning a depreciating arena asset, and still be able to sell luxury boxes and tickets? Seems like a pretty sweet deal to me.
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I was catching up with some commercial property guys down here today and the equivalent of a Rona warehouse just went for under 4% yield (up 30%) with a 10yr lease on it with the option to extend. There were 200 groups that approached to be considered for the deal with 8 groups putting in firm offers.
There is a LOT of capital out there starving for yield. The Flames could easily get a pension fund to build them a barn...but that pension fund isn't going to give them a sweetheart rent agreement and 100% of the non-hockey event revenue.