-- Connecting the dots between our economy, government and business --
Invesco sold North Water Apartments, a 398-unit property at 340 E. North Water St., to Miami-based Crescent Heights for $173 million, according to real estate data provider CoStar Group. The price represents a 28% drop in value for the Streeterville property since 2016, when Invesco bought it for $240 million. Brokers and landlords say many out-of-town investors have “redlined” Chicago, wary of the risk of rising property taxes, the city’s struggles in addressing crime and the progressive agenda of new Mayor Brandon Johnson. Fewer investors chasing deals in Chicago means less competition — and lower prices — for buildings on the market. But it’s hard to tell where values have settled because the volume of big apartment building sales has dropped in Chicago.
With $162 billion more from taxpayers, couldn’t you deliver a few bond upgrades, too
A largely unasked question is becoming glaring: Is Illinois doing all it should to use artificial intelligence to make government cost less and work better? So far, the evidence says no.
Everybody needs a side hustle these days, and mine is Ukraine, where I am now.
Summary and audio linked here.
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Audio and summary
Well, we won’t have Sam Zell come to the rescue
Hope Mayor Johnson’s staff flags this story to him before he continues espousing policies which serve no purpose to bolster Chicago’s sagging tax-base. For sure, new sale-price will dramatically affect assessor’s valuation of building, as new “valuation comp”; resulting substantial real estate tax burden decrease for its new owner gets transferred to other Chicago property owners who haven’t yet demonstrated significant property value deflation.
Here in an article from the Cato Institute on San Fran. This may be all by design. Someone needs to look into the super wealthy who are NOT invested in commercial real estate. Who are the people behind the curtain orchestrating the collapse. They whomever they are will pick up these properties at pennies on the dollar in the near future.
https://www.cato.org/blog/san-francisco-government-failure-erases-billions-dollars-commercial-real-estate-valuations
Valuations usually based upon income calculations. Less income, due to vacancies and rent reductions, cause reduction in valuation, and reduced selling price. No mystery there.
It begins – the sell off. 2/3rds of a loaf is better than 1/5th. Take the loss, and make it up in better places.
Spot on Jack. Invesco will be glad they got out early. In my younger days I heard horror stories about Detroiters who waited “too long.”
Many went to the grave unable to recover from the financial hit.
Get ready for a bloodbath of Loop fire sales