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  #2461  
Old Posted Jun 19, 2017, 12:04 AM
rlw777 rlw777 is offline
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I thought the form work on the north end of the center of the tower looked odd on the webcam. I guess I missed that they were doing some angled concrete columns as you can see below.

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  #2462  
Old Posted Jun 19, 2017, 1:55 AM
marothisu marothisu is offline
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Originally Posted by the urban politician View Post
^ Not getting the attitude here.

We love the construction pics and knowledge, but how the hell does it all happen without the money to keep things going?

And construction financing for a project this huge is far from a sure thing. Hence, I think it's a major thing to celebrate.
Dalian Wanda paid $6.1B cash combined within the last few years to purchase AMC Theatres and Legendary Entertainment (makes movies like Inception). They are the largest real estate developer in China, which is rather impressive. Their income per year is in the billions with revenue that would put them in the Fortune 100 if they were an American company. They do more in revenue every year than companies like Morgan Stanley, Goldman Sachs, Oracle, All State, United Airlines, Nike, 3M, Kraft Heinz, John Deere, McDonald's, Cat, etc. They have the money to fund this thing by themselves in cash plain and simple and have paid billions in cash for American companies before.

There was an article a number of months back about why they'd do the loan but it didn't really have much to do with them not having the money. There was another reason. It wasn't unexpected that they would get a loan, but pretty much a no brainer that this thing would be funded in some way whether through a loan or themselves.
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  #2463  
Old Posted Jun 19, 2017, 11:54 PM
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  #2464  
Old Posted Jun 20, 2017, 5:58 AM
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the entrance will have chinese lettering, thoughts?

http://studiogang.com/img/RTRwUWFNR2...ment-group.jpg
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  #2465  
Old Posted Jun 20, 2017, 12:29 PM
Kngkyle Kngkyle is offline
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Originally Posted by camdoodlebop View Post
the entrance will have chinese lettering, thoughts?

http://studiogang.com/img/RTRwUWFNR2...ment-group.jpg
Doubt that will actually happen; likely a marketing ploy for Chinese investors.
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  #2466  
Old Posted Jun 20, 2017, 1:22 PM
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Doubt that will actually happen; likely a marketing ploy for Chinese investors.
I personally hope it does happen, I mean why not? We're a global city after all, and as long as there is an English version as well I'm all for the Chinese characters. I've seen restaurant signs around town in French, I've seen billboards in Korean up in Koreatown, not to mention ubiquitous English/Spanish signage. I say keep it coming in all shapes, sizes and dialects.
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  #2467  
Old Posted Jun 20, 2017, 1:33 PM
SamInTheLoop SamInTheLoop is offline
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Originally Posted by marothisu View Post
Dalian Wanda paid $6.1B cash combined within the last few years to purchase AMC Theatres and Legendary Entertainment (makes movies like Inception). They are the largest real estate developer in China, which is rather impressive. Their income per year is in the billions with revenue that would put them in the Fortune 100 if they were an American company. They do more in revenue every year than companies like Morgan Stanley, Goldman Sachs, Oracle, All State, United Airlines, Nike, 3M, Kraft Heinz, John Deere, McDonald's, Cat, etc. They have the money to fund this thing by themselves in cash plain and simple and have paid billions in cash for American companies before.

There was an article a number of months back about why they'd do the loan but it didn't really have much to do with them not having the money. There was another reason. It wasn't unexpected that they would get a loan, but pretty much a no brainer that this thing would be funded in some way whether through a loan or themselves.

Not how this works.

No developers - even the ones that 'can' - in the US (including overseas-based ones) actually do build large projects completely with their own equity. Dalian Wanda was never actually going to do that - despite anything they or Magellan may have represented to that effect. The reason is simply $.....with 'normal' - even a bit above 'normal' - and certainly historically low, as is the case today - interest rates, any developer's return is much lower using all-equity, than when it is 'leveraged', ie using a loan to finance construction/acquisition.
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  #2468  
Old Posted Jun 20, 2017, 2:48 PM
IrishIllini IrishIllini is offline
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Originally Posted by SamInTheLoop View Post
Not how this works.

No developers - even the ones that 'can' - in the US (including overseas-based ones) actually do build large projects completely with their own equity. Dalian Wanda was never actually going to do that - despite anything they or Magellan may have represented to that effect. The reason is simply $.....with 'normal' - even a bit above 'normal' - and certainly historically low, as is the case today - interest rates, any developer's return is much lower using all-equity, than when it is 'leveraged', ie using a loan to finance construction/acquisition.
Are you saying this because they can use "their" money on other opportunities? Why is it always better to use financing than to rely entirely on their individual equity?

Unrelated topic - Does anyone know what inclusive strategies Vista had to come up with for construction? I've seen it mentioned at a few Plan Commission meetings over the past year or so...
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  #2469  
Old Posted Jun 20, 2017, 3:28 PM
Investing In Chicago Investing In Chicago is offline
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Are you saying this because they can use "their" money on other opportunities? Why is it always better to use financing than to rely entirely on their individual equity?
I realize you aren't directing this question to me, but I'll chime in. Using your own funds for a project of this scale just doesn't make sense, even for a massive company like Wanda. Leveraging debt is what good business people (and companies) do; I don't know the specific terms of their financing, but for the purpose of the example; assume Wanda is borrowing at a rate of 4.5% (no idea what their rate is), while holding on to their cash, they are likely making anywhere from 7-12% on the money. Plus there is a lot more risk funding a project 100% with cash. I'm on my phone, so sorry if this doesn't make sense.
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  #2470  
Old Posted Jun 20, 2017, 3:32 PM
LouisVanDerWright LouisVanDerWright is offline
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^^^ It's the magic of leverage. Let's look at 150 N Riverside:

Project cost just shy of $500 million to complete.

The equity was about $200 million and the construction loan was $300 million.

The project is now valued at approximately $900 million (though I would suspect it could sell for more given how hot the market is today).

That's a return of $400 million (before commissions or closing costs) in about 4 years. So they made a return of $100 million a year on $200 million of cash they invested total. The equity invested also likely covered the debt service, so this is including the cost of the construction loan. That's approximately 50% ROI per year which is insane for such huge sums of money.

If they had used all equity then the numbers would be like this. They would make a return of $400 million (maybe $420 million if they saved a little bit because they didn't have debt service) in 4 years which is still $100 million a year, but now it's spread over $500 million total cash investment meaning the return plummets to 20% ROI per year. Which would you rather have? 50% ROI or 20% ROI?

The fact is most investors demand AT LEAST 8% preferred returns on their money anyhow. In higher yield environments that's often much higher in the low or mid double digits. When you can get a construction loan at 6% or 7%, why would you go for all equity? Equity is more expensive because it gets wiped out first since there is a first position lien with the bank if you use a loan. No developer in their right mind would pay 8-15% for equity on the entire project cost when they could get debt for far less AND juice their returns with leverage.
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  #2471  
Old Posted Jun 20, 2017, 4:23 PM
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Originally Posted by kayosthery View Post
It can be pumped, but may require different additives to do so, namely Super Plasticizer "Super P", to make it fluid enough. If the contractor is pouring a lot of the vertical work at one time, it will usually pump the concrete. Every time you place concrete with a pump though you have to order enough to lose in the pipe that runs from the stationary pump on Lower Lower Wacker all the way to the tip of the pump. All of that unplaced concrete gets blown back through the pipe to a concrete truck when finished. So, you need to be placing enough that your production gained through pumping is offsetting the cost of the time to crane and bucket, as well as the lost concrete in the pipe. There's a lot of other considerations too, for example, the crane might be busy doing other things, and pumping is the only option.

To the last part of your comment... I wasn't saying pumping changes the mix. I meant that you cannot be sure when the mix you want reaches the end of the placing boom and when the truck delivering that mix runs out. Not saying it can't be done, but it's a lot easier and faster to crane and bucket the vertical mix.
With pumping, I thought there was a plug, something called a "pig" that was put in the end of the line (at the pump end) so the material that is in the pipe/hose could be pumped to the work area. I don't have any practical experience with this, but it seems like it should be a fairly easy calculation to figure out how much concrete is needed for any formed work, like a wall or a column, and also how much concrete is in the pipe/hose. I realize there would be some waste or overage but I would assume that also happens with the crane and bucket method.

With a crane and bucket it seems like there would be a huge amount of lost time between one bucket and the next------a crane can only do one pick at a time, and the higher the work site grows the longer the time would be between bucket deliveries.

I know that the crane usage is planned out very carefully, so maybe there are times when it makes sense/cents to do both pumping and bucket work. If the crane isn't being used for anything else it might as well be hauling concrete.

What union handles the placement of concrete in the vertical forms, is it the same one as does the slabs? I would imagine that the workers can do "X" amount in a certain time and once they are on the site its the managers job to be able to put them to work for the full day.

This to me is another example of the construction dance----balancing how much concrete a mix truck can deliver, how long it takes to get the concrete to where its needed, how much manpower is needed to place the concrete, time it takes to move from one pour spot to the next one (after all they are 10' to 16' up in the air above the slab) how to allow for break and lunch times, how to use the labor for as much of the day as possible but to avoid overtime whenever possible. And do all this while the rest of the construction is taking place all around the site. It still is very impressive to me.
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  #2472  
Old Posted Jun 21, 2017, 4:11 AM
marothisu marothisu is offline
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Originally Posted by SamInTheLoop View Post
Not how this works.

No developers - even the ones that 'can' - in the US (including overseas-based ones) actually do build large projects completely with their own equity. Dalian Wanda was never actually going to do that - despite anything they or Magellan may have represented to that effect. The reason is simply $.....with 'normal' - even a bit above 'normal' - and certainly historically low, as is the case today - interest rates, any developer's return is much lower using all-equity, than when it is 'leveraged', ie using a loan to finance construction/acquisition.
Not really my point - my point was that they are essentially the size (money wise especially) of a Fortune 100 company and the funding for this project was going to come no matter what from somewhere. It was never in question. I honestly don't know how anybody could look at the largest real estate developer in the largest (by population) country on earth, who does billions of dollars in revenue per year and not think they'd come up with the money somehow (i.e by securing a loan). It would be like questioning whether a company like Brookfield would come up with a loan to fund some big project.

People still have too much of a hangover from the Spire. The only thing this building has in common with the Spire is that they are both in downtown Chicago and both are tall. Pretty much nothing else of note.
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Last edited by marothisu; Jun 21, 2017 at 4:27 AM.
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  #2473  
Old Posted Jun 21, 2017, 1:40 PM
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  #2474  
Old Posted Jun 21, 2017, 3:15 PM
JK47 JK47 is offline
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Originally Posted by marothisu View Post
Not really my point - my point was that they are essentially the size (money wise especially) of a Fortune 100 company and the funding for this project was going to come no matter what from somewhere. It was never in question. I honestly don't know how anybody could look at the largest real estate developer in the largest (by population) country on earth, who does billions of dollars in revenue per year and not think they'd come up with the money somehow (i.e by securing a loan). It would be like questioning whether a company like Brookfield would come up with a loan to fund some big project.

https://www.ft.com/content/1c566bee-...9ed71?mhq5j=e1

It's not unreasonable to have some concerns particularly since Wanda just got publicly rebuked by Chinese regulators. Wanda's ability to make investments overseas is subject to the scrutiny and oversight of a secretive government intent on manipulating their currency. So while he's the largest developer in China which doesn't do him much good if he can't get his money out of China due to capital controls. A developer like Brookfield doesn't face the same hurdles with regard to deploying capital across borders that Wanda does.
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  #2475  
Old Posted Jun 23, 2017, 1:10 PM
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  #2476  
Old Posted Jun 23, 2017, 2:34 PM
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Been said before, but I will say it again...this is such an exciting time to be a Chicagoan. Last night I went through the forum page for the Aqua build back in 2009 as I was too young and dumb to pay attention at the time.

Now that I am slightly older (27) I continue to be amazed at all this activity, and want to extend a big thank you to everyone who contributes photos, info, etc to these forums. I work within R.E, though with a slightly less sexy focus on industrial/warehousing, and have still learned such a tremendous amount from everyone.
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  #2477  
Old Posted Jun 23, 2017, 2:54 PM
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Been said before, but I will say it again...this is such an exciting time to be a Chicagoan. Last night I went through the forum page for the Aqua build back in 2009 as I was too young and dumb to pay attention at the time.

Now that I am slightly older (27) I continue to be amazed at all this activity, and want to extend a big thank you to everyone who contributes photos, info, etc to these forums. I work within R.E, though with a slightly less sexy focus on industrial/warehousing, and have still learned such a tremendous amount from everyone.
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  #2478  
Old Posted Jun 23, 2017, 2:59 PM
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^ Really amazing to look back at that thread, even though a lot of the pictures were no longer available. I stumbled across a post saying that Magellan secured financing 30-60 days before the credit freeze. To think how different the skyline could have been...sorry for getting off topic, now back to the regularly scheduled programming.
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  #2479  
Old Posted Jun 24, 2017, 3:01 PM
the urban politician the urban politician is offline
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I will never forget some time in early 2003 walking on upper Wacker overlooking this massive patch of dirt which I had read was going to be the the future home of several high rises, a park, and shops. There was a girl whom I was dating at the time that I was showing this to.

Look how far this district has come.
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  #2480  
Old Posted Jun 27, 2017, 2:17 PM
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Quick question I've been want ting ask for awhile - does anyone know what the extremely large shaft (opening) is on the south end of the #2 section? Seems like it is positioned somewhat in the path of where the cut through road will go underneath the tower. Easy to see from webcam

https://www.vistatowerchicago.com/webcam/
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