CHICAGO | Riverline | 8 Towers | 600FT - 500FT(X2) - 380FT(X2) - 242FT(X2) - 300FT~

[BVictor1]

Originally Posted by CrazyCres

The Reed is now selling units and the website got an Update

https://thereedsouthbank.com/
https://www.chicagoarchitecture.org/...chicago-river/

Also if you click the link below and scroll to the bottom you'll see a new site plan

https://thereedsouthbank.com/southbank/

and a nice drawing

They've gone from 5 towers to 4.

The building along Harrison was supposed to be the tallest and now it appears no taller than The Reed.

Not impressed.....

[marothisu]

There was an article about The Reed a week ago. Should be starting construction soon, apparently.
https://www.chicagobusiness.com/resi...dds-apartments

A 41-story South Loop tower that was to be all condos now is slated to be more than half apartments.

The Reed, scheduled to break ground in the spring, will have 216 condos on its upper floors and 244 apartments below them, according to Ted Weldon, executive general manager of development for the Chicago office of Lendlease, the firm developing the tower at 234 W. Polk St., at the edge of the South Branch of the Chicago River.

Newer rendering - The Reed in the center

[Razorback]

I checked out the sales center a few weeks ago because I'm in the market to purchase. Nice building, nice amenities, and nice finishes. But these factors don't justify a $750 average Price/Sq.Ft. Not in that location and not with a building that doesn't add any architectural significance to the Chicago skyline.

Originally Posted by CrazyCres

The Reed is now selling units and the website got an Update

https://thereedsouthbank.com/
https://www.chicagoarchitecture.org/...chicago-river/

Also if you click the link below and scroll to the bottom you'll see a new site plan

https://thereedsouthbank.com/southbank/

and a nice drawing

[Tombstoner]

Originally Posted by Razorback

I checked out the sales center a few weeks ago because I'm in the market to purchase. Nice building, nice amenities, and nice finishes. But these factors don't justify a $750 average Price/Sq.Ft. Not in that location and not with a building that doesn't add any architectural significance to the Chicago skyline.

Also, the future 40-story buildings (according to the site plan) will pretty much negate any northern view (the best one IMO) from this building.

[Skyguy_7]

There is Case equipment on site at Harrison and Wacker (the Northern-most part of the property)

[the urban politician]

I’m so glad that there are still construction starts, but I can’t help but wonder what data these developers and lenders are looking at? In my own experience, rents are still down compared to pre-Covid and it’s still harder to fill apartments than it used to be.

[BuildThemTaller]

Originally Posted by the urban politician

I’m so glad that there are still construction starts, but I can’t help but wonder what data these developers and lenders are looking at? In my own experience, rents are still down compared to pre-Covid and it’s still harder to fill apartments than it used to be.

Probably the data that suggests two new huge office buildings - OPO and BMO - are under construction, plus the rest of the Loop within walking distance and they want to have more apartments hit the market in 2 years when construction is finished.

[Handro]

Originally Posted by the urban politician

I’m so glad that there are still construction starts, but I can’t help but wonder what data these developers and lenders are looking at? In my own experience, rents are still down compared to pre-Covid and it’s still harder to fill apartments than it used to be.

This was in Crain's a few days ago:

https://www.chicagobusiness.com/comm...al-real-estate

Demand rebounded in the fourth quarter, and rents and occupancies started to stabilize, according to new data from Integra Realty Resources. With coronavirus vaccinations ramping up and optimism about the economy rising, the worst may be over for landlords....

DeVries had earlier forecast absorption of -1,300 units for all of 2020. With the turnaround in the fourth quarter, absorption totaled -238 for the year. Though it was the first year of negative absorption since 2005, DeVries expected it to be much worse....

As vaccinations pick up and the pandemic subsides, more workers should return to their offices this year. But DeVries doesn’t expect downtown rents to recover fully until the spring of 2023, more than two years from now.

So basically we may not get a quick turnaround to full on downtown boom for a couple years, there is at least enough indication that by the time these new buildings are ready for tenants the demand will be there.

[the urban politician]

^ I read that article as well, but it's still a bit of a gamble no matter how you cut it

[Barrelfish]

Originally Posted by Tombstoner

Also, the future 40-story buildings (according to the site plan) will pretty much negate any northern view (the best one IMO) from this building.

How much does this factor into developers' plans for what to build when?

For example, when WPE was built it blocked the views down the river of WPW. Some people bought into WPW not realizing this. So presumably demand would have been lower if WPE was built first.

How much is this actually a factor, vs. other considerations (e.g. waiting to commit to the taller more expensive building until you've already gotten returns on the earlier ones)?

[LouisVanDerWright]

Originally Posted by the urban politician

^ I read that article as well, but it's still a bit of a gamble no matter how you cut it

There's already $2 trillion in excess savings sloshing around in the economy from pent up demand and massive stimulus. That's not considering the helicopter drop that Biden is about to make. Most people I know are already plotting the hedonistic binge they are going to undertake as soon as things normalize. Shits about to get wild real quick, who knows how long until the bubble they are inflating pops, but there is going to be intense growth and inflation between now and then. Inflation is essentially a transfer payment to asset holders particularly those holding real estate due to the leverage in that industry.

[west-town-brad]

Originally Posted by LouisVanDerWright

There's already $2 trillion in excess savings sloshing around in the economy from pent up demand and massive stimulus. That's not considering the helicopter drop that Biden is about to make. Most people I know are already plotting the hedonistic binge they are going to undertake as soon as things normalize. Shits about to get wild real quick, who knows how long until the bubble they are inflating pops, but there is going to be intense growth and inflation between now and then. Inflation is essentially a transfer payment to asset holders particularly those holding real estate due to the leverage in that industry.

The Fed has been trying to get the US to have a consistent inflation rate of 2% since the 2009 financial crisis without much success. I wouldn’t bet on a lot of inflation. I’d be praying we don’t tip into a deflationary spiral which will make anyone with leveraged real estate a fool.

[SamInTheLoop]

^ Correct. LVDW's operating definition of inflation needs a good bit of work. What he's talking about is not inflation.

[SamInTheLoop]

Originally Posted by the urban politician

I’m so glad that there are still construction starts, but I can’t help but wonder what data these developers and lenders are looking at? In my own experience, rents are still down compared to pre-Covid and it’s still harder to fill apartments than it used to be.

My take and I've mentioned before is that some of these developers that are launching large projects '20-21 are taking a calculated risk on the timing of the recovery. These are projects that won't deliver until '22-23 and they are making a bet (I'd argue a fairly smart one) that the economy will be back on track enough by then (with potentially a still strengthening 2-3 year outlook) to launch now. Given the nature of this downturn, it's makes sense to me.

[Mr Downtown]

^Exactly. If you're in the business of renting apartments, you want to have some inventory available when the market is ready to absorb them.

[ithakas]

Site prep is underway at The Reed.

It also appears that the lot on the north end is under construction – the area's fenced off, with heavy machinery on the site – though whether that's for a new building or something else I'm not certain.

[ardecila]

^ They are sealing off the freight tunnels that run under the site and building a new access point for utility workers. There will be a little bunker along Harrison there with a blank door and stairs that go down 7 stories to the tunnels.

[left of center]

Freight tunnels, on this side of the river? They must be the old abandoned narrow gauge rail tunnels from the Chicago Tunnel Company, right?

[Mr Downtown]

^Exactly.

[harryc]

April 26






tunnel plugging ?