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

[the urban politician]

Those micro units will almost certainly sell to investors who would plan to lease them out.

Problem is, that only works if:

A. Rents are high
B. Association fees are low
C. They don’t have too many association rules that make it hard to lease them out

[SIGSEGV]

I can imagine people using such studios as "luxury hotel rooms" for themselves if they travel to Chicago often.

[marothisu]

Originally Posted by SIGSEGV

I can imagine people using such studios as "luxury hotel rooms" for themselves if they travel to Chicago often.

That was my thought too...some will probably try and rent them out and some will just use it as a crash pad for when they're in Chicago, but live elsewhere most of the year and don't want to spend more than $300K- $400K on it.

[SIGSEGV]

Originally Posted by marothisu

That was my thought too...some will probably try and rent them out and some will just use it as a crash pad for when they're in Chicago, but live elsewhere most of the year and don't want to spend more than $300K- $400K on it.

Yeah, crash pads seem to be relatively common even for suburbanites. I have friends in a condo building in Streeterville that appears to be like 50% weekend crash pads. Hell maybe TUP needs one for when he gets sick of Libertyville!

[DePaul Bunyan]

Originally Posted by SIGSEGV

I can imagine people using such studios as "luxury hotel rooms" for themselves if they travel to Chicago often.

For $1k/SF? Plus condo fees? People traveling to Chicago often enough to even entertain buying a crash pad are probably doing so for work, and they're probably expensing hotel rooms. If they're serious about buying something it's going to be bigger than a living room so they can have friends and family over.

I can imagine a three-way with Elizabeth Olsen and Taissa Farmiga...

[Zapatan]

Originally Posted by Fvn

lol we'll see through, with this project I'm not gonna believe it until I see a caisson rig on site

Right, a lot of these reports seem unrealistically positive, but hey, who knows.

Wouldn't mind if this thing got built

[the urban politician]

Originally Posted by DePaul Bunyan

For $1k/SF? Plus condo fees? People traveling to Chicago often enough to even entertain buying a crash pad are probably doing so for work, and they're probably expensing hotel rooms. If they're serious about buying something it's going to be bigger than a living room so they can have friends and family over.

I can imagine a three-way with Elizabeth Olsen and Taissa Farmiga...

Agree. At most they may be used at AirBnbs but a lot of condo associations have banned them and place stiff fines.

More than likely they will serve as rentals. $300k for a studio is far too high, though.

[BonoboZill4]

Originally Posted by the urban politician

Agree. At most they may be used at AirBnbs but a lot of condo associations have banned them and place stiff fines.

More than likely they will serve as rentals. $300k for a studio is far too high, though.

And there is good reason why you would ban Airbnb in big condo/apartment buildings. Very shady and impossible to regulate to a level that would be deemed safe. No one wants randos just walking through their building by happenstance.

[cozy]

Originally Posted by BonoboZill4

And there is good reason why you would ban Airbnb in big condo/apartment buildings. Very shady and impossible to regulate to a level that would be deemed safe. No one wants randos just walking through their building by happenstance.

Very good point. Depending on the amount of "micro" units they sell, the entire base of this building could turn into a hotel of sorts. Is airbnb currently allowed in the loop?

[Ricochet48]

It's my understanding that airbnb is up to the condo association (which also has to follow overall city regulations).

My building had to formally ban it and I'm very glad. Having HS kids rent out units for weekend parties would be terrible (and potentially dangerous).

Going to lots of events I feel I know a lot of the people I live with and would not feel as comfortable with randos roaming the halls (even if it means forfeiting a small chunk of potential rental change)

Anyways, as noted, at $1K a sqft before HOA fees, this would be nuts for a crash / bang pad. I doubt this will get off the ground based on its current proposal. I would rather rent in NEMA and maintain some flexibility at those rates...

[Barrelfish]

Originally Posted by Ricochet48

It's my understanding that airbnb is up to the condo association (which also has to follow overall city regulations).

My building had to formally ban it and I'm very glad. Having HS kids rent out units for weekend parties would be terrible (and potentially dangerous).

Going to lots of events I feel I know a lot of the people I live with and would not feel as comfortable with randos roaming the halls (even if it means forfeiting a small chunk of potential rental change)

Anyways, as noted, at $1K a sqft before HOA fees, this would be nuts for a crash / bang pad. I doubt this will get off the ground based on its current proposal. I would rather rent in NEMA and maintain some flexibility at those rates...

Even if it was fine for 51 weekends a year, the proximity of this building to Lollapalooza means that short-term rental is probably a bad idea

[kolchak]

Originally Posted by SIGSEGV

Yeah, crash pads seem to be relatively common even for suburbanites. I have friends in a condo building in Streeterville that appears to be like 50% weekend crash pads. Hell maybe TUP needs one for when he gets sick of Libertyville!

Ironically this added density of units has the potential to decrease the number of full time residents in the building. This part time dwelling effect reduces neighborhood real density in the end. It’s part of the reason cities with near 100% occupancy, like for example Paris, that have squatters rights and vacancy rules have such dense neighborhoods. But residency requirements will never be an issue in the US.

[jsbrook]

I don't think these numbers are so ridiculous. They work for someone who is well-off and who maybe spends a week a month in Chicago for work. I do something similar in DC. Also, some companies I've worked at will do this for executives who travel to a location that's not their primary home with some frequency. The purchase price is not that much for a company, whether mortgaged or paid outright, and condo fees are a lot less than 7 days a month in a hotel. And it's an asset that can eventually be sold as needed or desired. The question is how many such people exist that there is a market for this in Chicago? In New York or DC, there is a market for this.

[NYguy]

https://www.apnews.com/b4a14193475540acaf3c031ee31355ee

Helmut Jahn-Designed, Luxury Condominium Tower 1000M Introduces New Selection of Residences Dubbed the “International Collection”


Feb 4, 2019

Responding to a segment of buyer demand for highly efficient condominium plans similar to those found in luxury towers throughout Europe, Asia and Canada, the International Collection will occupy the 41 st through 47 th floors of the 74-story, Helmut Jahn-designed tower located at 1000 S. Michigan Ave across from Grant Park.

The new floor plans will offer studio, one, two and three-bedroom layouts ranging in size from 325 to 850 square feet, along with breathtaking views of Lake Michigan and Grant Park. Introductory pricing for the 133 International Collection homes starts at $313,000, and 20 of the condominiums have already been sold during an exclusive preview offering, showcasing the high level of interest in the new series. 1000M will feature a total of 421 luxury residences.

[the urban politician]

^ Nice, article says that 20 of the 133 "International collection" homes are already sold.

I found this noteworthy:

International Collection homeowners will have full access to 1000M’s 40,000 square feet of world-class amenities, including: an 11 th floor library lounge with an outdoor terrace; a spa featuring hot and cold plunge pools, steam room, sauna and Himalayan salt therapy room; an outdoor pool and sundeck; fitness center; golf simulator; coworking space; a 72 nd floor winter garden, observation deck and Club 1000 lounge; music conservatory; demonstration kitchen and private dining room; lobby with 24-hour staff; and a concierge.

^ Even I would consider buying a condo in this building as a rental investment, but after reading the above, all I can think of is "high assessment, high assessment, high assessment"

[BonoboZill4]

Exactly, they basically want to do what the Legacy does, but without the option of opting out of said program. I know that residents of that building can obtain University Club memberships fairly easily, but for 1000M, it would be like you were forced to buy into said program... Those HOA fees are going to be more than most people's rent

[jsbrook]

Originally Posted by BonoboZill4

Exactly, they basically want to do what the Legacy does, but without the option of opting out of said program. I know that residents of that building can obtain University Club memberships fairly easily, but for 1000M, it would be like you were forced to buy into said program... Those HOA fees are going to be more than most people's rent

It said $1 per sq foot as I recall. That's in line with what other luxury condos charge for HOA. You always pay a lot for amenities you don't use in these kind of buildings. Except the part-time residents in the International Collection probably actually will USE them because they won't establish as much of life in Chicago as fulltime residents. They also aren't paying that much as a result of the small size of their condos. It adds up for fulltime residents in larger places, for sure.

[Ricochet48]

$1/sqft is a lot in a new building, even luxury. Older ones with shit elevators and inefficient heating cost a lot, but even my 15yo building it's ~75c with what I would consider top notch 'core' amenities (pool, gym, etc.) That includes cable TV & fast internet (like a separate $70 line item)--I just pay electricity.

[marothisu]

Remember a few weeks ago when this thing was canceled?

[Hourstrooper]

Originally Posted by marothisu

Remember a few weeks ago when this thing was canceled?