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-   -   CHICAGO | 1000M (1000 S Michigan) | 805 FT | 73 FLOORS | ON HOLD (https://skyscraperpage.com/forum/showthread.php?t=218947)

Mr Downtown Apr 13, 2019 4:32 AM

Quote:

Originally Posted by pianowizard (Post 8538974)
Hopefully there will soon be a residential skyscraper in this area with condos below half a million dollars. That should attract more people to move there.

You realize there are already nearly 50 such buildings in that area? Some, like mine, offer spectacular skyline views for around $300/sq ft.

pianowizard Apr 13, 2019 2:24 PM

Quote:

Originally Posted by Mr Downtown (Post 8539045)
You realize there are already nearly 50 such buildings in that area? Some, like mine, offer spectacular skyline views for around $300/sq ft.

Well, I was thinking about new, very tall condo skyscrapers comparable to NEMA and 1000M, because part of the discussion was about skyline-changing residential buildings to be built in the near future. But you're right, if I don't mind older and shorter condo buildings that are nonetheless tall enough to offer good views, there are already a fair number in the area. $300/sq ft is a steal.

I just did a quick search for condo listings and was surprised to find one from 1000M of a 454 sq ft unit with 1 bedroom and 1 bathroom, for $410,000! And the monthly HOA fee is $199, which is actually a little less than what I currently pay for a very basic, ground-floor condo built in the 1960s (though it's 850 sq ft). At $903/sq ft it's far from a bargain, but I was pleasantly surprised that 1000M isn't just selling million-dollar condos.

SIGSEGV Apr 14, 2019 12:48 AM

When I walked by today I noticed that they changed their sign to be more playful less elegant.

https://lh3.googleusercontent.com/nt...=w1049-h787-no

Hourstrooper Apr 14, 2019 2:37 AM

Quote:

Originally Posted by SIGSEGV (Post 8539630)
When I walked by today I noticed that they changed their sign to be more playful less elegant.

https://lh3.googleusercontent.com/nt...=w1049-h787-no

I belive they lowered the prices on some units though could just be the international collection thing... They should go dual condos and apartments that'll get this thing goin sooner than later for sure

chris08876 Apr 14, 2019 8:04 PM

Any pre-sales for this development. IDK if Chicago follows the way of Miami in the sense of pre-sales prior to shovels on the ground?

Given the influx of high unit developments, its a good sign of confidence in the market.

BonoboZill4 Apr 14, 2019 8:48 PM

Quote:

Originally Posted by chris08876 (Post 8540053)
Any pre-sales for this development. IDK if Chicago follows the way of Miami in the sense of pre-sales prior to shovels on the ground?

Given the influx of high unit developments, its a good sign of confidence in the market.

This topic has been discussed ad nauseum throughout the thread for months. They are aiming for a certain number of presales and securing finances before starting construction.

Goose Island Guru Apr 14, 2019 11:56 PM

Quote:

Originally Posted by chris08876 (Post 8540053)
Any pre-sales for this development. IDK if Chicago follows the way of Miami in the sense of pre-sales prior to shovels on the ground?

Given the influx of high unit developments, its a good sign of confidence in the market.

Pre-sales are much less of a market-based issue as you ask the question. The pre-sale requirements come not from the local market, but from the developer’s lender and equity groups. Pre-sale requirements may vary by market but they exist because nobody wants to throw money at a project that isn’t able to prove ot can sell once on the market.

The thought is once you hit a certain level of pre-sales the momentum will carry you after construction starts. You get a lot more hits for sales on a building being built than one being proposed.

Hourstrooper Apr 15, 2019 12:02 AM

The facebook page for this building has a ton of followers so I mean it hopefully is doing well. Maybe this will be a silent starter for us someday this year.

BonoboZill4 Apr 15, 2019 3:19 AM

Quote:

Originally Posted by Hourstrooper (Post 8540178)
The facebook page for this building has a ton of followers so I mean it hopefully is doing well. Maybe this will be a silent starter for us someday this year.

I mean, you can pay like 100 bucks for a thousand followers via South Asian facebook farms, so they probably just did that

pianowizard Apr 15, 2019 1:14 PM

Quote:

Originally Posted by chris08876 (Post 8540053)
Any pre-sales for this development.

Just two posts above yours, I wrote "I just did a quick search for condo listings and was surprised to find one from 1000M of a 454 sq ft unit with 1 bedroom and 1 bathroom, for $410,000! And the monthly HOA fee is $199".

Hourstrooper Apr 15, 2019 3:28 PM

Quote:

Originally Posted by BonoboZill4 (Post 8540273)
I mean, you can pay like 100 bucks for a thousand followers via South Asian facebook farms, so they probably just did that

Could be but I think that the lowering of the condo prices in the tower may have something to do but who knows

Suiram Apr 17, 2019 7:08 PM

So if I remember correctly the reason for the redesign was the local community org wanting to preserve a completely flat street wall along S Michigan?

On apartments vs condos the fundamental problem all cycle has been simple math. Apartments renting at $3.5/ft (so $2,450 for a 700 sf 1 BR). Say get bottom line NOI of $2.2/sf. Apartment cap rates for prime locations can get as low as 4.5% or 4.75%. So we are talking about apartment projects exiting at $400k to $450k per 1 bedroom apartment.

As a condo those same units would probably require far higher quality finishes and you'd be stuck dealing with all the liability and potential lawsuits along with a harder process to get financing.

It'll be interesting to see what happens with Fritz and the news in Evanston. If apartment property taxes skyrocket it'll significantly push up the OPEX on apartment projects. People are kidding themselves if they think it'll all be passed through to the tenants. More likely, apartments just wont be worth as much anymore and suddenly it'll be easier to build condos in that $400-$500k range as the apartment values will decline.

Mr Downtown Apr 17, 2019 10:09 PM

Quote:

Originally Posted by Suiram (Post 8543791)
So if I remember correctly the reason for the redesign was the local community org wanting to preserve a completely flat street wall along S Michigan?

No. The project had been redesigned by the time it went to Landmarks, long before any "local community org" ever got to see it. I think we heard that the developer felt the original design was too avant-garde.

LouisVanDerWright Apr 17, 2019 11:20 PM

Quote:

Originally Posted by Suiram (Post 8543791)
It'll be interesting to see what happens with Fritz and the news in Evanston. If apartment property taxes skyrocket it'll significantly push up the OPEX on apartment projects. People are kidding themselves if they think it'll all be passed through to the tenants. More likely, apartments just wont be worth as much anymore and suddenly it'll be easier to build condos in that $400-$500k range as the apartment values will decline.

No, it will be passed through, it is always passed through. You even named the mechanism through which it will be passed through. Developers will simply build fewer apartments causing rents to soar. They might build more condos, but given the debt burden most Millenials and Gen X'ers have that's not going to help much.

At the end of the day there simply is no "I'd like to have my cake and eat it to", it doesn't work that way. If Chicago becomes a more expensive place to own property then it becomes a more expensive place to live. If condos have other hidden costs like lawsuits or higher end finishes like you mention and we start building more condos because apartments become less profitable. Then housing costs rise because the housing costs more to build. There is no "now we are going to legislate cheaper housing" or "now we are going to pass the tax to end the entire pension crisis". You can't just legislate money or assets into existence.

Hourstrooper Apr 17, 2019 11:36 PM

Quote:

Originally Posted by Suiram (Post 8543791)
So if I remember correctly the reason for the redesign was the local community org wanting to preserve a completely flat street wall along S Michigan?

On apartments vs condos the fundamental problem all cycle has been simple math. Apartments renting at $3.5/ft (so $2,450 for a 700 sf 1 BR). Say get bottom line NOI of $2.2/sf. Apartment cap rates for prime locations can get as low as 4.5% or 4.75%. So we are talking about apartment projects exiting at $400k to $450k per 1 bedroom apartment.

As a condo those same units would probably require far higher quality finishes and you'd be stuck dealing with all the liability and potential lawsuits along with a harder process to get financing.

It'll be interesting to see what happens with Fritz and the news in Evanston. If apartment property taxes skyrocket it'll significantly push up the OPEX on apartment projects. People are kidding themselves if they think it'll all be passed through to the tenants. More likely, apartments just wont be worth as much anymore and suddenly it'll be easier to build condos in that $400-$500k range as the apartment values will decline.

Well granted he doesn't even start looking at the city until 2021 we have a while before anything like that occurs. but yes a luxury condo boom will follow if he jacks up prices like that

the urban politician Apr 18, 2019 12:58 AM

Quote:

Originally Posted by LouisVanDerWright (Post 8544129)
No, it will be passed through, it is always passed through. You even named the mechanism through which it will be passed through. Developers will simply build fewer apartments causing rents to soar. They might build more condos, but given the debt burden most Millenials and Gen X'ers have that's not going to help much.

At the end of the day there simply is no "I'd like to have my cake and eat it to", it doesn't work that way. If Chicago becomes a more expensive place to own property then it becomes a more expensive place to live. If condos have other hidden costs like lawsuits or higher end finishes like you mention and we start building more condos because apartments become less profitable. Then housing costs rise because the housing costs more to build. There is no "now we are going to legislate cheaper housing" or "now we are going to pass the tax to end the entire pension crisis". You can't just legislate money or assets into existence.

This.

One hundred percent

Hourstrooper Apr 27, 2019 12:10 AM

Apparently according to facebook 1000m page somebody just bought a penthouse level unit they put a picture of the person whom is a dr on facebook

MorganChi Apr 27, 2019 2:51 AM

Quote:

Originally Posted by Hourstrooper (Post 8554021)
Apparently according to facebook 1000m page somebody just bought a penthouse level unit they put a picture of the person whom is a dr on facebook

I wonder if this makes it a strong possibility of this building happening

PittsburghPA Apr 27, 2019 3:29 AM

https://1000southmichigan.com/blog/b...r-sam-koppula/

BonoboZill4 Apr 27, 2019 3:52 AM

Quote:

Originally Posted by PittsburghPA (Post 8554176)

Ooof... this just reeks of desperation to me...


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