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  #2621  
Old Posted Nov 23, 2018, 10:19 PM
marothisu marothisu is offline
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Originally Posted by SIGSEGV View Post
I almost wonder if they're targeting students with ultra-rich parents for those rentals...
I think that and people who just moved to town from places like Manhattan, SF, Hong Kong, Tokyo, London, etc who are going to buy a place soon after in town anyway.
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  #2622  
Old Posted Nov 24, 2018, 12:52 AM
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You guys are missing a huge item in this debate:

Never underestimate the overwhelming desire by some to attract females.

Men have a long history of throwing money away on a depreciating asset (sports cars) to do so. I can totally see an expensive apartment in a building like this playing a similar role for some people.
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  #2623  
Old Posted Nov 24, 2018, 1:15 AM
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Originally Posted by the urban politician View Post
You guys are missing a huge item in this debate:

Never underestimate the overwhelming desire by some to attract females.

Men have a long history of throwing money away on a depreciating asset (sports cars) to do so. I can totally see an expensive apartment in a building like this playing a similar role for some people.
Oh yeah, that's another one. I can see most people not knowing WTF One Bennett Park is, so in that case they better have amazing views for this to work...
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  #2624  
Old Posted Nov 24, 2018, 10:59 AM
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Guys, there is definitely a market for two bedroom rentals at $5k/month. I’m in that market. For a couple who both work it isn’t much money, and there are plenty of reasons why one would want to rent rather than own (temporary re-locations, better alternative uses of capital, views on the direction of real estate prices).

And one of the main reasons to spend the extra grand on a rental is quality of fixtures. If anything that’s more important in a rental, because you can’t just gut renovate yourself. Cheaper rentals just aren’t livable for grown ups if the kitchen is a shithole, etc.
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  #2625  
Old Posted Nov 24, 2018, 1:55 PM
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Originally Posted by 10023 View Post
Guys, there is definitely a market for two bedroom rentals at $5k/month. I’m in that market. For a couple who both work it isn’t much money, and there are plenty of reasons why one would want to rent rather than own (temporary re-locations, better alternative uses of capital, views on the direction of real estate prices).

And one of the main reasons to spend the extra grand on a rental is quality of fixtures. If anything that’s more important in a rental, because you can’t just gut renovate yourself. Cheaper rentals just aren’t livable for grown ups if the kitchen is a shithole, etc.
Nnobody is talking about 2 bedrooms for that price - we've been talking about 1 bedroom units for that price. If it was a 2 bedroom for that price, then that's not nearly as bad - that's not too much out of the ordinary and in the realm of fair price currently IMO. For a 1 bedroom unit though? It's definitely out of the ordinary for downtown Chicago. When I looked the other day, there were equal amount of $4800 1 bedroom units available than $4100 - and they were basically the same size. I'd imagine the difference is maybe the views, but who knows.
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  #2626  
Old Posted Nov 24, 2018, 5:22 PM
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^ I think I saw a 2-bedroom for that price on the website. Maybe a low floor, but yes you would pay a premium for views.
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  #2627  
Old Posted Nov 24, 2018, 6:48 PM
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Originally Posted by 10023 View Post
Guys, there is definitely a market for two bedroom rentals at $5k/month. I’m in that market. For a couple who both work it isn’t much money, and there are plenty of reasons why one would want to rent rather than own (temporary re-locations, better alternative uses of capital, views on the direction of real estate prices).

And one of the main reasons to spend the extra grand on a rental is quality of fixtures. If anything that’s more important in a rental, because you can’t just gut renovate yourself. Cheaper rentals just aren’t livable for grown ups if the kitchen is a shithole, etc.
The difference is that in London wages are high enough to easily compensate for that. I'm not saying Chicago wages are low, but it's all relative to cost of living in various cities. The 5k monthly for a 1br or 2br apartment market is microscopic in Chicago when compared to London
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  #2628  
Old Posted Nov 24, 2018, 7:28 PM
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^ I think I saw a 2-bedroom for that price on the website. Maybe a low floor, but yes you would pay a premium for views.
There were a few - but most of the 2 bedrooms I saw here were around $6000/month or more. At $4700 for a 1 bedroom though, that's ridiculous right now in Chicago in 2018. Pretty much the highest price outside of that for a 1 bedroom right now downtown is around $3000/month, maybe up to $3500 at the absolute most which is probably a bigger unit.

Essentially some of the apartments are priced at $1M for a ~700 sq ft 1 bedroom apartment, which is over $1400/sq ft. Keep in mind that that 4700+ sq ft condos at No. 9 Walton are going for cheaper than that per square foot (some of them I see more like $1100 to $1200/sq ft). So this $5.8M condo at No 9 Walton would cost $1M more with the OBP pricing per square foot of their apartment units. Another $5.7M 5000 sq ft condo at No. 9 Walton I see which is $1135/sq ft would go for over $7.1M with OBP apartment pricing (over $1.4M more than it's going for right now). Just saying.
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  #2629  
Old Posted Nov 25, 2018, 11:18 PM
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What's the shortest lease allowed? If people can rent an apartment here for just 2 - 3 months, $6000/mo is still cheaper than many hotels in Chicago. Perhaps the developer thinks of hotels as their competitors?
     
     
  #2630  
Old Posted Nov 26, 2018, 12:40 AM
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Originally Posted by pianowizard View Post
What's the shortest lease allowed? If people can rent an apartment here for just 2 - 3 months, $6000/mo is still cheaper than many hotels in Chicago. Perhaps the developer thinks of hotels as their competitors?
Some buildings allow short-term leases to go month by month, but it's definitely not most buildings (at least advertised). I'd assume if they don't have that deal, you could maybe negotiate for one, but I'm sure you'd pay more than the market rent. Whether it's cheaper or not depends on what kind of hotel you're going for. For a hotel, you could probably negotiate a lower price if you wanted to stay for long term, so it could end up being equal. You'd have more room with a real apartment though probably.
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  #2631  
Old Posted Nov 26, 2018, 11:00 PM
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Here's something that just occurred to me. In a parallel universe, one in which One Bennett Park and 1000M switched places, would they better suit their neighborhoods?

I'm just imagining RAMSA's style fitting slightly better with the older Michigan Avenue streetwall and Grant Park than with the glass boxes of Streeterville, which would better house 1000M's sleek look.
     
     
  #2632  
Old Posted Nov 26, 2018, 11:13 PM
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Originally Posted by gebs View Post
Here's something that just occurred to me. In a parallel universe, one in which One Bennett Park and 1000M switched places, would they better suit their neighborhoods?

I'm just imagining RAMSA's style fitting slightly better with the older Michigan Avenue streetwall and Grant Park than with the glass boxes of Streeterville, which would better house 1000M's sleek look.
I actually would love to see a Stern tower or something similar in the lot east of NEMA.

     
     
  #2633  
Old Posted Nov 26, 2018, 11:58 PM
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Originally Posted by gebs View Post
Here's something that just occurred to me. In a parallel universe, one in which One Bennett Park and 1000M switched places, would they better suit their neighborhoods?

I'm just imagining RAMSA's style fitting slightly better with the older Michigan Avenue streetwall and Grant Park than with the glass boxes of Streeterville, which would better house 1000M's sleek look.
I think it's each one looking different than the buildings around them that makes both big pluses for their neighborhood. Otherwise they'd just be more of the same(albeit bigger and higher quality versions of more of the same)
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  #2634  
Old Posted Nov 27, 2018, 7:51 AM
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Originally Posted by BonoboZill4 View Post
The difference is that in London wages are high enough to easily compensate for that. I'm not saying Chicago wages are low, but it's all relative to cost of living in various cities. The 5k monthly for a 1br or 2br apartment market is microscopic in Chicago when compared to London
No, this is absolutely wrong.

Chicago professional salaries aren’t much different from NYC or London, really. The price to income ratio is just much, much lower.

London and NYC just have a lot more established affluence and buyer interest from people who aren’t local.
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  #2635  
Old Posted Nov 27, 2018, 7:53 AM
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Originally Posted by gebs View Post
Here's something that just occurred to me. In a parallel universe, one in which One Bennett Park and 1000M switched places, would they better suit their neighborhoods?

I'm just imagining RAMSA's style fitting slightly better with the older Michigan Avenue streetwall and Grant Park than with the glass boxes of Streeterville, which would better house 1000M's sleek look.
No, because you can’t get these price points south of Grant Park (or even south of the river, probably).

Plus Streeterville has more than enough blue glass.
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  #2636  
Old Posted Nov 27, 2018, 8:05 AM
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Originally Posted by 10023 View Post
No, this is absolutely wrong.

Chicago professional salaries aren’t much different from NYC or London, really. The price to income ratio is just much, much lower.

London and NYC just have a lot more established affluence and buyer interest from people who aren’t local.
It's cool you can talk about London as you live there, but what you say about NYC is wrong. Sure, there are some professions that aren't much different, but on average NYC wages are definitely higher than Chicago which leads to higher housing costs. These have nothing to do with affluence. Your $100K job in Chicago could easily pay over $150K in NYC. The only difference is that on $100K you could afford to live in a fairly new luxury high rise in downtown Chicago. In Manhattan, you'd need to be making closer to $200K for something similar. Your money goes a lot further in Chicago.

I was making decent money in Chicago and lived in a luxury high rise. I make a bit more in NYC, and while I could afford a $4000 per month place, it would not be as comfortable with things like money saving as what I had in Chicago. There's a lot of ppl making more money than me here, but not anywhere close to the rich category.

Perhaps you'd like to join me on my current apartment search in NYC (mainly Manhattan) and understand how much more expensive normal, everyday housing is. Most buildings aren't marketed or geared towards people of affluence at all. Stuff is just expensive here due to higher wages. When I got a job here, they automatically tacked on $30K per year due to COL adjustments ..and that was comparing msa to msa, not city to city. This wasn't enough actually, given COL and I would have ended up making less money on a $30K salary bump. Luckily I was able to negotiate for a bit more.

For normal "professionals", the differences are pretty big percentage wise. If you have lived in NYC in the last 5 years with an actual job that you're speaking of, and know wages in other cities, you'd understand exactly what I'm talking about.
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  #2637  
Old Posted Nov 27, 2018, 9:07 AM
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San Francisco should also be included as a city with higher wages, strong demand, and extremely expensive housing costs.
     
     
  #2638  
Old Posted Nov 27, 2018, 3:33 PM
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San Francisco should also be included as a city with higher wages, strong demand, and extremely expensive housing costs.
Yep, definitely SF too. The BLS does their earnings survey every year for the MSA and also for some of the larger cities by the smaller metropolitan divisions.

San Francisco Metro Div: https://www.bls.gov/oes/current/oes_41884.htm
Chicago Metro Div: https://www.bls.gov/oes/current/oes_16974.htm
NYC Metro Div: https://www.bls.gov/oes/current/oes_35614.htm

The data is from May 2017 which is most recent, so anybody can check these. It's a survey though, but i think at least somewhat accurate..
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  #2639  
Old Posted Nov 28, 2018, 4:57 AM
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Originally Posted by 10023 View Post
No, this is absolutely wrong.

Chicago professional salaries aren’t much different from NYC or London, really. The price to income ratio is just much, much lower.

London and NYC just have a lot more established affluence and buyer interest from people who aren’t local.
It's not wrong though...

London and NYC have much higher wage earnings than Chicago and a higher number and percentage of millionaires to boot. I'm not even sure how you can argue against that fact. According to some estimates, London has the most multi-millionaires on Earth, and NYC is in fourth...
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  #2640  
Old Posted Dec 1, 2018, 6:13 PM
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