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  #1521  
Old Posted Sep 27, 2021, 7:31 PM
ChiPlanner ChiPlanner is offline
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Tribune Tower condo sells for over $8 million
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A nearly $8.1 million unit is one of five condominiums in the redeveloped Tribune Tower that sold this month, continuing Chicago’s streak of multimillion-dollar home sales.

The unit on the 22nd floor—the highest priced condo in the building—sold for almost $8.1 million, according to the developers. That's the fifth-highest home sale price of the year for the Chicago area.

The 4,185-square-foot unit includes four bedrooms and four bathrooms. It also has a 1,000-square-foot outdoor terrace that faces east and overlooks the Pioneer Court.

“It’s one of the most iconic buildings in the United States,” said Chezi Rafaeli, a broker at Coldwell Banker who represented the buyers, declining to disclose their identity. “People in this building are paying such a premium because of the historical aspect of the building...."

The 4,185-square-foot unit includes four bedrooms and four bathrooms. It also has a 1,000-square-foot outdoor terrace that faces east and overlooks the Pioneer Court.

“It’s one of the most iconic buildings in the United States,” said Chezi Rafaeli, a broker at Coldwell Banker who represented the buyers, declining to disclose their identity. “People in this building are paying such a premium because of the historical aspect of the building.”

Two other units sold this month in the Tribune Tower, according to the developers: a two-bed, two-bath condo on the 4th floor for $1.24 million, and a one-bed, one-bath sold for $1.6 million...
https://www.chicagobusiness.com/resi...over-8-million

Still no word on how many have sold but that's encouraging for the addition if the biggest/highest price units are selling.
     
     
  #1522  
Old Posted Sep 27, 2021, 8:25 PM
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Quote:
Originally Posted by ChiPlanner View Post
Tribune Tower condo sells for over $8 million


https://www.chicagobusiness.com/resi...over-8-million

Still no word on how many have sold but that's encouraging for the addition if the biggest/highest price units are selling.
It's funny that an $8m condo at $2k/sf is considered a lot in Chicago.
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  #1523  
Old Posted Sep 27, 2021, 10:26 PM
BuildThemTaller BuildThemTaller is offline
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Originally Posted by JMKeynes View Post
It's funny that an $8m condo at $2k/sf is considered a lot in Chicago.
Yes, hilarious that regional real estate markets differ.
     
     
  #1524  
Old Posted Sep 27, 2021, 10:29 PM
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Chicago is definitely the most affordable of the big three "megacities". In fact it's more affordable than many other large US cities.

Hopefully that bodes well for new condo development.
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  #1525  
Old Posted Sep 27, 2021, 11:38 PM
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Originally Posted by Zapatan View Post
Chicago is definitely the most affordable of the big three "megacities". In fact it's more affordable than many other large US cities.

Hopefully that bodes well for new condo development.
Why would a developer build condos in a city where they have to sell them for less? This is why we’re seeing massive condo to rental conversions. 1000m perfect example.
     
     
  #1526  
Old Posted Sep 28, 2021, 12:05 AM
marothisu marothisu is offline
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Originally Posted by Briguy View Post
Why would a developer build condos in a city where they have to sell them for less? This is why we’re seeing massive condo to rental conversions. 1000m perfect example.
Tons of condos have been built and are being built in Chicago and sell. The only difference is that they're in 2 to 5 unit buildings usually so you aren't hearing about them. Take a look at my map and look at all the red buildings. A lot of those outside of downtown are actually condos, not rental..
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  #1527  
Old Posted Sep 28, 2021, 12:05 AM
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Originally Posted by Briguy View Post
Why would a developer build condos in a city where they have to sell them for less? This is why we’re seeing massive condo to rental conversions. 1000m perfect example.
They are not selling them for less. Unless we are all billionaires on this blog, $8 million for 4000 sf is not cheap, and we don't know how much the HOA fee is (it's usually high for older building like the renovated Tribune. It may also be that Chicago's market is more skewed towards US and likely local residents compared to a city like NY and LA. Also, condo to rental conversions had been occurring because the many people had preferred to rent rather than buy for the flexibility and developers could buy up often older condos, refurbish them, and rent them out. Some of the older north side condos were bought out by developers to convert to residential.
     
     
  #1528  
Old Posted Sep 28, 2021, 12:42 AM
lakeshoredrive lakeshoredrive is offline
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Hope this will start construction early next year!
     
     
  #1529  
Old Posted Sep 28, 2021, 1:11 AM
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Quote:
Originally Posted by Briguy View Post
Why would a developer build condos in a city where they have to sell them for less? This is why we’re seeing massive condo to rental conversions. 1000m perfect example.
Land costs less, construction costs less, the city process allows construction to proceed faster than some jurisdictions, once the condos are all sold the developer has little risk (their LLC's dissolve). $2k/SF have to be near record prices for new construction condos in Chicago so there are plenty of reasons to develop in Chicago if you develop a product that is marketable in a desirable location.
     
     
  #1530  
Old Posted Sep 28, 2021, 1:59 AM
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Quote:
Originally Posted by BuildThemTaller View Post
Yes, hilarious that regional real estate markets differ.
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  #1531  
Old Posted Sep 28, 2021, 2:31 AM
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Quote:
Originally Posted by Briguy View Post
Why would a developer build condos in a city where they have to sell them for less? This is why we’re seeing massive condo to rental conversions. 1000m perfect example.
My reasoning was that more people would be willing to buy normal priced condos, in a cheaper city they're also cheaper to build than say NYC. Ultra high end luxury seems like it would have a limit / be more risky whereas normal condo towers in an affordable city where your average person could afford one wouldn't as much.

I was also just referring to condo (or rental) development in general, not just this tower.
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  #1532  
Old Posted Sep 28, 2021, 5:21 PM
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Quote:
Originally Posted by DCReid View Post
They are not selling them for less. Unless we are all billionaires on this blog, $8 million for 4000 sf is not cheap, and we don't know how much the HOA fee is (it's usually high for older building like the renovated Tribune. It may also be that Chicago's market is more skewed towards US and likely local residents compared to a city like NY and LA. Also, condo to rental conversions had been occurring because the many people had preferred to rent rather than buy for the flexibility and developers could buy up often older condos, refurbish them, and rent them out. Some of the older north side condos were bought out by developers to convert to residential.
Given how thorough the renovation was (top to bottom) I'd be surprised if the HOA was high due to maintenance factors. All things equal, a gut rehab shouldn't have higher maintenance costs than a new building.

If it is a high HOA (and it probably is) it's probably because of amenities and/or services, which would apply equally in a new, ground-up tower.
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  #1533  
Old Posted Sep 30, 2021, 10:34 PM
Chicagolover88 Chicagolover88 is offline
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All I know is they said construction should start in quarter 4 of 2021 to quarter 2 of 2022 and in 2 days quarter 4 starts so I'm just ready for the groundbreaking everyday from now on. Lol
     
     
  #1534  
Old Posted Sep 30, 2021, 10:38 PM
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^ few glasses are rosier than those of the developer of a Chicago supertall proposal forecasting the construction timeline.

But I would of course love to be proven wrong here.
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Last edited by Steely Dan; Oct 1, 2021 at 2:46 AM.
     
     
  #1535  
Old Posted Sep 30, 2021, 10:48 PM
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Is the renovation of the old Tribune Tower totally finished? That's when they were supposed to start I believe.
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  #1536  
Old Posted Oct 1, 2021, 2:25 AM
LouisVanDerWright LouisVanDerWright is offline
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Originally Posted by Steely Dan View Post
^ few glasses are rosier than those of the developer of a Chicago supertall proposal forecasting the construction timeline.

But I would of course live to be proven wrong here.
The thing is, CIM and Golub have some serious firepower. If the Tribune Tower itself is successfully sold out, they will probably own the dirt for this tower free and clear and also have their original capital back. That's really the key: owning the dirt, having liquid capital, and having experience. Those are the necessary ingredients for this to happen. We need Tribune to sell out and at record prices. So far the Covid housing mania is setting things up nicely for a strong performance on the condo redevelopment.
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  #1537  
Old Posted Oct 2, 2021, 9:08 PM
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They still have something like 100 condos to sell at Tribune and are having trouble getting the job to pencil out. Don't hold your breath on this one.
     
     
  #1538  
Old Posted Oct 2, 2021, 10:05 PM
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They still have something like 100 condos to sell at Tribune and are having trouble getting the job to pencil out. Don't hold your breath on this one.
Yeah, should have heard something by now if something was going to happen before end of year but has been radio silence.

The inflation/housing price increase/etc is the best story going though to make this happen. It's probably a 5 year project or so - I don't know how they even make these decisions as it's impossible to judge risk and the market on that time frame. I guess that's the nature of investing and profit though.
     
     
  #1539  
Old Posted Oct 3, 2021, 2:45 AM
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They still have something like 100 condos to sell at Tribune and are having trouble getting the job to pencil out. Don't hold your breath on this one.
Where did you hear this?

Quote:
Yeah, should have heard something by now if something was going to happen before end of year but has been radio silence.

The inflation/housing price increase/etc is the best story going though to make this happen. It's probably a 5 year project or so - I don't know how they even make these decisions as it's impossible to judge risk and the market on that time frame. I guess that's the nature of investing and profit though.
Maybe they want it to be a surprise so they're being quiet about it on purpose.

Chicago has been on fire with condo development lately, that could either be a good thing or bad thing in the sense that the market may be oversaturated by this point (I believe this building is partially a hotel too though).

My prediction is that, due to the legitimacy of the people behind this project, they'll seize the opportunity to build something but perhaps not at such scale, I'd be extremely happy as long as this winds up the second highest roof in Chicago by a visible margin (1250-1300 ish)
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Last edited by Zapatan; Oct 3, 2021 at 3:46 AM.
     
     
  #1540  
Old Posted Oct 3, 2021, 3:27 PM
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Mikelacey45 Mikelacey45 is offline
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Originally Posted by Zapatan View Post
Where did you hear this?



Maybe they want it to be a surprise so they're being quiet about it on purpose.

Chicago has been on fire with condo development lately, that could either be a good thing or bad thing in the sense that the market may be oversaturated by this point (I believe this building is partially a hotel too though).

My prediction is that, due to the legitimacy of the people behind this project, they'll seize the opportunity to build something but perhaps not at such scale, I'd be extremely happy as long as this winds up the second highest roof in Chicago by a visible margin (1250-1300 ish)

My prediction they may go for the tallest with a spiral.
     
     
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