At its annual fall meeting (this year in Chicago), the real estate research non-profit Urban Land Institute released its 2014 trends report Thursday. The verdict of the 1,000 professionals surveyed? Next year we will continue “recovering from the recovery,” in the words of one respondent, following the depths of the 2008 recession.
The housing problem in Hong Kong is critical. Studies estimate that the city of seven million will have to house another 600,000 people over the course of the next 30 years. With rapidly increasing urbanization rates, leading Chinese metropolises are speculating on fast and intelligent ways to manage population growth by creating additional housing within their existing borders. While some cities are growing taller and others are mulling developing rare and cherished park space, Hong Kong is taking a different approach. Officials and engineers have thought about something else: developing an extensive underground city.
The story goes like this: In 1949 an engineer named A.K. Chahroudi commissioned Frank Lloyd Wright to design a home on Petra Island in Lake Mahopac, New York, which Chahroudi owned. But the $50,000 price tag on the 5,000 square foot house was more than Chahroudi could afford, so Wright designed him a smaller, more affordable cottage elsewhere on the island.
Fast forward to 1996 when Joseph Massaro, a sheet metal contractor, bought the island for $700,000, a sale that also included Wright’s original yet unfinished plans. Though he says he only intended to spruce up the existing cottage and not build anything new, one can hardly fault Massaro for wanting to follow through on a home Wright once said would eclipse Falling Water. In 2000 Massaro sold his business and hired Thomas A. Heinz, an architect and Wright historian, to complete and update the design, a move that incensed the Frank Lloyd Wright Foundation, who promptly sued him, stating he couldn’t claim the house was a true Wright, but was only “inspired” by him.
Earlier in the week Crain’s reported that the Merchandise Mart, Chicago’s iconic Art Deco design center and the home of the country’s largest design trade show, is up for sale. Vornado, the New York–based real estate company that bought the Mart’s parent company from the Kennedy family in 1998, is reportedly seeking more than $1 billion for 8.9 million square feet held by Merchandise Mart Properties (MMPI).
Yesterday, MMPI released a statement disputing elements of the Crain’s story, particularly recent profitability figures. According to MMPI, their properties are 92% occupied, a rate far higher than the 84% occupancy for the rest of the Chicago central business district. The statement implies, thought it does not categorically state, that the Mart is not on the block. Here’s the full release. Read More
According to Crain’s Chicago Business, major construction unions will not be loaning funds to restart the Chicago Spire, as many had speculated. The union pension funds are feeling cautious, much like other lenders, so the Spire, which was always an ambitious project, remains a high risk bet. Who will the developers turn to next?
First reported in the Chicago Tribune, and today in the Wall Street Journal, officials at a group of union pension funds are vetting a plan to lend $170 million to restart construction on the stalled Chicago Spire. Designed by Santiago Calatrava, the 150 story residential tower would be the tallest building in the US. The Journal piece points out that with a drastic drop off in condo construction downtown predicted for 2010 and 2011, the completion of the Spire could actually come at a time when there is pent up demand for housing. Blair Kamin previously pointed out that unions have made similar loans in previous downturns, notably providing loans for the construction of Marina City.
According to the Journal, Chicago’s failure to win the 2016 Olympics may have been the key to giving the Spire new life. The pensions had previously been looking to lend funds for the construction of the planned Olympic Village.