CHICAGO | General Developments

[Baronvonellis]

$1500 for a studio though with no parking. How many people can afford those prices?

[PKDickman]

Originally Posted by Baronvonellis

$1500 for a studio though with no parking. How many people can afford those prices?

That's not very high around here.
It runs about a grand for a grubby 1/2 floor in a back building with the bedroom over the trashcans.

I don't thing they will have any trouble keeping it rented.

I know at least a 100 bike psychos who would love to be a part of this experiment.

Add in airline personel and a some corporate rentals, it'll be filled.

[harryc]

[Baronvonellis]

I'm seeing apts for rent around $1500 in Wicker Park for 2 bedroom places. You got to be making $80,000 to $100,000 to afford a 1 bedroom there. What airline employees are making that much? How many bike psychos make $100,000?

Originally Posted by PKDickman

That's not very high around here.
It runs about a grand for a grubby 1/2 floor in a back building with the bedroom over the trashcans.

I don't thing they will have any trouble keeping it rented.

I know at least a 100 bike psychos who would love to be a part of this experiment.

Add in airline personel and a some corporate rentals, it'll be filled.

[Link N. Parker]

Originally Posted by Baronvonellis

I'm seeing apts for rent around $1500 in Wicker Park for 2 bedroom places. You got to be making $80,000 to $100,000 to afford a 1 bedroom there. What airline employees are making that much? How many bike psychos make $100,000?

Not only that, but I called the number today at the Tower and the smallest one beds are going for $1700, with the 2-bed "flex units" going for $2050+ per month. This building is going to appeal more to Loop office workers (tech, finance etc) then the typical 23-yr old Wicker Park bike fanatic. Although, I would love to see those types live here, but again its all about supply and demand. Its a great building but again most of the downtown Loop types that I work with, do own a car, and are not going to want to part with their car to be a part of this, but as others said I dont think there will be any trouble filling up this building in the long run or keeping it rented.

[Rizzo]

Originally Posted by Baronvonellis

I'm seeing apts for rent around $1500 in Wicker Park for 2 bedroom places. You got to be making $80,000 to $100,000 to afford a 1 bedroom there. What airline employees are making that much? How many bike psychos make $100,000?

If that's the case my apartment hunting was shoddy. Because nearly everything I found in Wicker Park (that wasn't some basement cellar) was similar to what I've been paying downtown in the $2.50 - $2.90 range. It's an ammenity building in a prominent location with some decent views. Doesn't seem too far off the mark

[LouisVanDerWright]

Originally Posted by Baronvonellis

I'm seeing apts for rent around $1500 in Wicker Park for 2 bedroom places. You got to be making $80,000 to $100,000 to afford a 1 bedroom there. What airline employees are making that much? How many bike psychos make $100,000?

If you've ever seen those "2 bedroom places" that are going for $1,500 you'd realize that you'd be getting either about the same square footage as a studio (750 SF with 8 X 11' bedrooms) or they are just complete shit holes.

Also, what airline personnel? Um, most of them? Even flight attendants start around $50,000 a year domestic if they work full hours. I get those numbers directly from my two tenants who are flight attendants. I have several friends who are pilots and they all make six figures. I have one friend who is a pilot on the A-380's and he makes over $200,000 a year if he works full time hours... Airline employees generally make a ton of money if they are actually manning aircraft and working a full set of shifts.

[Link N. Parker]

Originally Posted by LouisVanDerWright

If you've ever seen those "2 bedroom places" that are going for $1,500 you'd realize that you'd be getting either about the same square footage as a studio (750 SF with 8 X 11' bedrooms) or they are just complete shit holes.

Also, what airline personnel? Um, most of them? Even flight attendants start around $50,000 a year domestic if they work full hours. I get those numbers directly from my two tenants who are flight attendants. I have several friends who are pilots and they all make six figures. I have one friend who is a pilot on the A-380's and he makes over $200,000 a year if he works full time hours... Airline employees generally make a ton of money if they are actually manning aircraft and working a full set of shifts.

Does anyone know what rent ratio this building is using?

Flight attendants making $50,000 a year would qualify for $2083/mo rent if using the loosest ratio (2:1), but only qualify for a monthly rent of $1388 if using the strictest standard, 3:1. There are only a certain number of studios in the building ($1500+). The majority of the units here are AT LEAST $2000+ per month, with one unit going for almost $4000/month in rent. Airline pilots would have no problem renting here, and actually I knew an airline pilot who used to live a few blocks south of here, on Milwaukee. He lived on the 4th floor of a walk-up building that had parking in rear and was 2-beds and was paying $1900 at the time (2009). Dont know what he is paying now. But are the trade-offs of not having to walk up 4 flights of stairs, worth it for giving up his parking spot? For a pilot, probably not, as him and the other pilot I know (and the other one I knew, my grandfather RIP), love their toys (bikes, cars, planes) and for the most part are not interested in car-free living.

[clark wellington]

Just to throw in my two cents, I think you're underestimating the demand for quality units in this neighborhood and overestimating the demand for parking.

I'm coming at this as a business school student interning at a consulting firm this summer. Most of my classmates/fellow interns are in our late 20s/early 30s, and Wicker Park has a ton of appeal as a neighborhood with a lot of amenities but still much "cooler" than hoods like Lincoln Park and Lakeview. It's also easy to get to the airport (I travel every week) and the great restaurant scene in Logan Square. I can also tell you that most of my classmates and fellow interns currently don't own cars don't plan on buying one (at least in the near future) - that's one of the appeals of Chicago.

Wicker Park has a dearth of high-quality studios and 1-bedrooms, so this fills a very needed niche. I have no doubt it will lease up quickly, even at these rents.

[Tom Servo]

$1500 isn't a crazy number for a brand new modern building right next to the L. I pay $775 for my 250 sq foot studio in Edgewater...

[marothisu]

Originally Posted by Baronvonellis

I'm seeing apts for rent around $1500 in Wicker Park for 2 bedroom places. You got to be making $80,000 to $100,000 to afford a 1 bedroom there. What airline employees are making that much? How many bike psychos make $100,000?

Not everyone drives first of all. I started out in Chicago making $65K and was able to very comfortably rent out a $1400/month apartment and still have around a few thousand left over (note, I had no debt when I moved here) after paying rent, cell phone, etc every month. No car for me and you don't have to be a bike enthusiast to want to live there. it's in a good neighborhood right near a transit stop that's only 10-15 minutes from the Loop and also 30 minutes to O'Hare if you travel a bit.

If the place was good enough I would live there for sure. You're severely over estimating the amount of money you have to earn per year to get a $1500/month place unless of course you're in a lot of debt. I can understand the car thing, but there's a ton of people in Chicago who don't even have cars anymore (me included) and an increasing number of younger generation of "kids" now actually prefer going carless if they're in a city where they can manage that.

[PKDickman]

Originally Posted by Baronvonellis

I'm seeing apts for rent around $1500 in Wicker Park for 2 bedroom places. You got to be making $80,000 to $100,000 to afford a 1 bedroom there. What airline employees are making that much? How many bike psychos make $100,000?

Just to be clear, the $1500 studios are the "Affordable Housing" units.

Bike psychos come in all income brackets.

Pilots need to sleep somewhere too. As for the other airline employees, they will do what everyone does when the rent is high, they get a roommate. Sure it's a one bedroom, but you will be amazed at what you will put up with when your apartment is basically a crash pad.

I live on North ave, and despite the fact that rents are ridiculous around here (evidenced by the notion that $1500 is affordable), I still see a string of uniformed personnel dragging rollaround luggage to the EL every morning.

[Kenmore]

Originally Posted by Tom Servo

$1500 isn't a crazy number for a brand new modern building right next to the L. I pay $775 for my 250 sq foot studio in Edgewater...

Yeah, I'm not sure where people get the idea that there are all these great affordable apartments out there. Chicago is increasingly a you get what you pay for expensive city to rent in.

[marothisu]

Originally Posted by Kenmore

Yeah, I'm not sure where people get the idea that there are all these great affordable apartments out there. Chicago is increasingly a you get what you pay for expensive city to rent in.

There are in some areas if you know how to look for it for sure. I have friends renting studios for under $600/month in some decent areas. My last girlfriend paid less than $600/month for her share of a huge 2 bedroom in Lincoln Square last year and $750/month in Lakeview East after that. I have a friend in Ukrainian Village in a big 2500 sq ft almost brand new place paying $600/month for his share. His living room is as big, if not bigger, as my entire apartment is in Gold Coast.

However, you're right that rent is increasing, especially if you want to live on your own in a desirable neighborhood. However, compared to San Fran, NYC, DC, Boston, most of LA, etc Chicago is still a pretty decent deal.

[LouisVanDerWright]

Originally Posted by Kenmore

Yeah, I'm not sure where people get the idea that there are all these great affordable apartments out there. Chicago is increasingly a you get what you pay for expensive city to rent in.

This is true, but that is why people are starting to adventure out into other parts of the city. For example, I've got some fine 2 BR's in Little Village that are only two blocks from the Pink Line and 20 min from downtown I'd gladly lease to you for $500/month (I'm getting $425 right now). They are on the smaller side and have outdated finishes, but they work just fine if you aren't looking for luxury. I think we are going to see a lot of the starving artist types pushing out into new frontiers as rents in Logan Square, Wicker Park, Humboldt Park, and Avondale all become unattainable for them.

Originally Posted by PKDickman

Bike psychos come in all income brackets.

Exactly, I was just drinking beer at my friend's apartment in one of the Mies towers along the lake in Lincoln Park and he's a die hard cyclist who bikes all the way to Skokie for work every day like our very own Steely Dan. He makes very good money doing what he does (I would imagine well into the six figures) and simply has no desire to have a car. If the weather is bad he will just take the red line to the yellow line and ride a Pace shuttle if he absolutely HAS to be in the office.

[MultiModal]

Rents in Chicago are pretty cheap, relative to a city of its scale. But off topic i have a few questions that I am sure a few of you can answer...
1. has anyone heard any news on the sale of the London Guarentee Building, if someone cleans that building up it will be a very pretty tower.
2. Did the new Cermak station break ground
3. Is there going to be any issue with Google moving into the Cold Storage building due to all the delays
4. Are there any new updates on the capping of the Kennedy project?
5. Hate to ask but any action with Wolf Point?

Side note, I am interested to see the tourism numbers this year, since we had such great summer weather I would expect them to be very good.

[Vlajos]

Originally Posted by MultiModal

Side note, I am interested to see the tourism numbers this year, since we had such great summer weather I would expect them to be very good.

Well average occupancy has been up a good amount through May as have Average Daily Rates.

http://www.choosechicago.com/article...statistics/72/

June occupancy was over 92%

http://www.chicagobusiness.com/artic...ercent-in-june

[Link N. Parker]

Originally Posted by MultiModal

Rents in Chicago are pretty cheap, relative to a city of its scale. But off topic i have a few questions that I am sure a few of you can answer...
1. has anyone heard any news on the sale of the London Guarentee Building, if someone cleans that building up it will be a very pretty tower.
2. Did the new Cermak station break ground
3. Is there going to be any issue with Google moving into the Cold Storage building due to all the delays
4. Are there any new updates on the capping of the Kennedy project?
5. Hate to ask but any action with Wolf Point?

Side note, I am interested to see the tourism numbers this year, since we had such great summer weather I would expect them to be very good.

These are all great questions, and I was actually wondering about Wolf Point as well. Anyone know?

[wrab]

Originally Posted by MultiModal

.....
1. has anyone heard any news on the sale of the London Guarentee Building, if someone cleans that building up it will be a very pretty tower.....

See today's Chicago Highrise Projects & Construction sub-forum for info on London Guarantee.

[untitledreality]

Originally Posted by Baronvonellis

$1500 for a studio though with no parking. How many people can afford those prices?

A lot. Look at lease rates for other new construction buildings in the city, and look at newly renovated apartments in Wicker Park... $1500 is reasonable.

Originally Posted by Baronvonellis

I'm seeing apts for rent around $1500 in Wicker Park for 2 bedroom places. You got to be making $80,000 to $100,000 to afford a 1 bedroom there. What airline employees are making that much? How many bike psychos make $100,000?

Woah. Hold up.

In what world do you 'need' to be earning $80-$100K to afford a $1500-$1700/month apartment? A the most that is 25% of your pretax income. That is a pretty cushy percentage for most renters. I guarantee you will have people making $45K scoping out this building without even blinking.