CHICAGO | 1000M (1000 S Michigan) | 805 FT | 73 FLOORS

[Hourstrooper]

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]

Originally Posted by Hourstrooper

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]

Originally Posted by chris08876

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]

Originally Posted by BonoboZill4

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]

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]

Originally Posted by Suiram

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]

Originally Posted by Suiram

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]

Originally Posted by Suiram

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]

Originally Posted by LouisVanDerWright

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]

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]

Originally Posted by Hourstrooper

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]

https://1000southmichigan.com/blog/buyers-spotlight-dr-sam-koppula/

[BonoboZill4]

Originally Posted by PittsburghPA

https://1000southmichigan.com/blog/buyers-spotlight-dr-sam-koppula/

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

[marothisu]

Originally Posted by BonoboZill4

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

She's been practicing medicine for over 30 years!? She looks 45 at most to me..jesus..

[donnie]

This is so funny it's sad. At this point i think Jahn has a better chance of winning the redevelopment for the Thompson Center than 1000M becoming a reality...

[emathias]

Originally Posted by LouisVanDerWright

...
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.

There is one way to legislate cheaper housing: legislate away regulations that increase costs, or that limit the ability of unvested interests to delay projects. That wouldn't need to be something that compromises safety or quality of life, it could also be by standardizing certain things, making review and approval processes more predictable. Chicago doesn't seem particularly good at doing that sort of thing, though.

[BonoboZill4]

Originally Posted by marothisu

She's been practicing medicine for over 30 years!? She looks 45 at most to me..jesus..

No kidding!

[chicagodeckerdude]

1000M responded to me today

<blockquote class="imgur-embed-pub" lang="en" data-id="a/zrNtPMt"><a href="//imgur.com/zrNtPMt"></a></blockquote><script async src="//s.imgur.com/min/embed.js" charset="utf-8"></script>

[chicagodeckerdude]

1000M responded to me today

https://imgur.com/a/zrNtPMt

[the urban politician]

Yep, sounds like a bunch of BS