Looking for New Construction? The Reed at Southbank in Printers Row at 234 W. Polk
Most of the new construction in Chicago residential high rises in 2022 are in apartments. But there are a handful of new construction condos including The Reed at Southbank at 234 W. Polk in Printers Row (or is it now called Southbank?)
“Southbank” is a new community on the South Branch of the Chicago River at Wells and Harrison near Printers Row. It contains several apartment buildings such as The Cooper, which is already built, but also condos including The Reed at Southbank which is a high rise right on the River.
But The Reed is a mixed building, with apartments and condos.
The website says there will be 216 luxury residences starting on the 23rd floor to the 41st floor. There will be about 220 apartments on the 9th through the 22nd floors.
Southbank will have a 2 acre park and a quarter mile riverwalk with a future Water Taxi stop.
The units will have floor-to-ceiling windows and balconies with city and/or lake views.
They will have 9′ custom finish concrete ceilings.
The kitchens will have European style flat panel cabinets, quartz counter tops, a porcelain tile backsplash, Bosch stainless steel appliances and an island.
The units are priced at $400,000 for the 1-bedrooms, the smallest of which is 625 square feet, up to $1.4 million for the 3-bedroom units.
The website doesn’t list prices for the 2-bedrooms.
Chicago Agent Magazine indicated that the building topped off in July 2022 and is expected to begin closings in the summer of 2023.
I couldn’t find an update on how many of the units are under contract.
Is demand returning for units in new construction high rises at the under $1 million price point?
You can see the Reed at Southbank’s website here.
https://www.chicagospropertyshop.com/southbank/the-reed-at-southbank-condos-for-sale/ – LOL. Good luck with that
Now we’re counting dens as 1/2 Br?
$500k for a tiny 1/1 in the South Loop? Nyet.
Not interest for me. Most of the 2/2s are smaller and not as nice as my current condo in a better location. Tiny kitchens, bitty closets, no bathtub in the master, and I hate the finishes. Does not convince me to move.
So rates were 3% when they broke ground and are 7% now
Presale buyers are getting murdered
Would love to see how many folks have backed out
“Presale buyers are getting murdered”
We don’t know how many did rate locks, right? KB Homes said just a few weeks ago that over 2/3rds of their buyers have rate locks.
mixed buildings are crap, just like this awful glass box architecture
who the hell would want to pay 1.4 million for a unit that you share with section 8 voucher people
absolutely stupid
I realize that directly west of the river is pretty uninviting and that the shopping area over there isn’t very pedestrian friendly, but a Polk Street pedestrian/bike crossing over the river would be useful for this area.
“Tiny kitchens, bitty closets, no bathtub in the master, and I hate the finishes.”
I noticed that they didn’t put a tub in the primary bathroom and wondered what you would think about that Lauren. It does save space.
Some of the 2/2s are tiny. They have one that is just 1020 square feet. Living room has to be very small with that square footage.
This is the problem in new construction apartment buildings too. The floorplans are very small. This is why, to me, the better deal is to buy in an older building where the unit needs some renovation. You can put in your own finishes. Just have to make sure the building is keeping up with maintenance etc.
“$500k for a tiny 1/1 in the South Loop? Nyet.”
You all said this about the units in Lakeshore East too but those are selling. They had similar prices to this building.
But the high mortgage rates are really going to bite. I’m sure they are hoping that those come down by next summer. But if they HAD to, they could just rent out the condos.
“mixed buildings are crap, just like this awful glass box architecture”
Who would want to pay $15 million in One Chicago sonies?
Or in Aqua?
But I digress.
We all know the only way to get the construction loan is to include either apartments or a hotel in part of the building. There’s too much risk for the lender otherwise. With a recession coming, lenders are going to be very cautious. They know the rental market is red hot so they’re still willing to go there.
I also don’t mind the glass but it depends on how they do it. I love Wolf Point East and it’s all glass. I also didn’t initially like One Chicago but when you see it from the Kennedy, it’s a beautiful building. A real statement piece on the skyline.
“I realize that directly west of the river is pretty uninviting and that the shopping area over there isn’t very pedestrian friendly, but a Polk Street pedestrian/bike crossing over the river would be useful for this area.”
For sure. I also hope the Water Taxi ultimately DOES go in there. I’m still shocked that Wolf Point did not put in a taxi stop. I don’t get it.
“We don’t know how many did rate locks, right? KB Homes said just a few weeks ago that over 2/3rds of their buyers have rate locks.”
Nothing like making a major purchase and being instantly underwater
Great, their payment is “reasonable”, good luck trying to sell. For the buyers sake, I hope they like living here
So yes, They’re getting murdered
“They know the rental market is red hot so they’re still willing to go there.”
No doubt “they know” that “Rents Are Growing [only] Half as Fast as They Were Six Months Ago”
https://www.redfin.com/news/redfin-rental-report-september-2022/
Redfin claims rents declined 0.5% in Chicago. I’m skeptical. BLS shelter measures lag the market but Chicago shelter cost (42% of CPI) are up 8.6% YoY; services (60% of the index) are up 8.2% YoY; Chicago rents (only 7% of CPI) are up only 4.7% YoY and will probably disinflate in months ahead to catch up to Redfin’s guesstimate. Chicago commodities (40% of cpi) fell from last month’s 11.4% to 9.5% YoY — Hooray! But the SPR is running low and OPEC gave Biden the middle finger. Fuels & utilities in Chicago (4.8% of CPI) are up 33.3% YoY, so I may revise higher my guesstimate of the percentage of Chicagoans who can’t afford their home’s carrying cost.
Chicago new construction buyers = guaranteed bagholders. I think many of the people buying these units don’t care though. They love the city.
“No doubt “they know” that “Rents Are Growing [only] Half as Fast as They Were Six Months Ago””
Downtown rents were up 5% this year. No one knows what will happen next year but further rent increases are expected. It all depends on the tightness in the rental market, obviously.
Other neighborhoods will see different results. But the big lenders are building highrises mostly in downtown so that’s what we should be talking about.
Construction was stalled in the first year of the pandemic because lenders did get nervous. But they’re lending again and Chicago is one of their top rental markets (and Fulton Market one of the top neighborhoods). If there’s a recession with a lot of layoffs, will the lenders get conservative again? Of course.
Downtown occupancy is above pre-pandemic levels so the landlords have some strength right now. Chicago job market is holding pretty well, so far, but we have a lot of tech jobs so tech cuts at Alphabet, Facebook and the like will impact us.
SPR is not running “low” it has millions and millions of barrels. Lol. Come on. Do better if you’re going to make these stupid arguments.
Chicago gas prices aren’t determined by the SPR, by the way. Or OPEC. They’re determined by the Great Lakes refineries which, if they have outages, mean higher gasoline prices.
“Nothing like making a major purchase and being instantly underwater”
Who is underwater? Not the KB Home buyers, that’s for sure.
“Great, their payment is “reasonable”, good luck trying to sell. For the buyers sake, I hope they like living here”
I honestly hope this rate cycle changes the perception that housing should be some sort of “investment” and that you shouldn’t buy it unless you can make tons of money. It was never designed to be that and shouldn’t be that. It’s simply a place to live. It’s been warped for the last 20 years. We didn’t have a second bubble in the last few years but we certainly had a return of the housing desperation and some speculation again in the hot markets.
The Fed needs to crush it down for good. There’s a reason people bought homes and didn’t move for 20 or 30 years in the 1970s to 2000. It was stablizing for communities.
With rents at record levels and still increasing, buying still makes sense for those who are going to live somewhere for 10+ years.
I don’t mind the architecture and I like the location. But I do wonder about the size of the units. And don’t like having windowless rooms (the 2.5 bedrooms units. Not sure about the finishes, either. I love the views.
“I honestly hope this rate cycle changes the perception that housing should be some sort of “investment” and that you shouldn’t buy it unless you can make tons of money. It was never designed to be that and shouldn’t be that. It’s simply a place to live. It’s been warped for the last 20 years. We didn’t have a second bubble in the last few years but we certainly had a return of the housing desperation and some speculation again in the hot markets.
The Fed needs to crush it down for good. There’s a reason people bought homes and didn’t move for 20 or 30 years in the 1970s to 2000. It was stablizing for communities.”
From the person that thinks a 2/2 starter condo is a good thing…
Employment (employee & employer) trends don’t support working at the same co for 35 years. People are much more mobile today
Land has always been an investment. Expecting 20% YoY growth is dumb and seems to be the GenZ and younger millennial mindset. I don’t think CPI + (More if you take a risk in a “marginal” hood) is an unrealistic expectation
“ Who is underwater? Not the KB Home buyers, that’s for sure.”
This is wrong.
A new $500k condo financed at 3%, ain’t gonna sell for $500k in a 7% environment
They are underwater and stuck
“They are underwater and stuck”
KB Home buyers bought a year ago. KB Home continued to raise the prices on those houses, in some cases, nearly every day. The national home builders have said that cancellation rates remain fairly low because the buyers all have equity built in and they don’t want to walk away from it.
Buyers TODAY do not have that same equity. And sales of new contracts are down 50%. But this is why those who bought from KB Home and Toll etc. in 2021 will likely close. Additionally, those buyers have customized their homes. They have an emotional attachment to it. The Reed has 3 finishes packages and that’s it. Are you “customizing” with that?
I remember 2005-2008. Used to have a LOT of customization in the new construction (unless you were in 340 OTP which had only the one package so all of those kitchens and baths still look the same. Blah.) Going to pick out your finishes is one of the fun parts about buying new.
Harder to get emotionally attached if you’re not customizing.
“From the person that thinks a 2/2 starter condo is a good thing…”
Plenty of people buy 2/2s and live there for 10 or 20 years. Gasp. Fewer people are getting married. Even less are having kids. Nothing wrong with a 2/2 condo as your home. And with rents rising, it may make more sense to own it over a long length of time. Every person has to run the numbers and decide for themselves. The NYT rent-v-own calculator has always been really good too.
People in Chicago are really blessed. We have a lot of options of units at all sizes for “affordable” prices. Tell someone in San Francisco that they could buy a 1200 square foot 2/2 with parking and w/d in the unit for $450,000 and they would lose their minds. But our market is different. We continue to build high rises and mid-rises and 4 and 8 flats.
Harder to get new construction 2/2s under $500k now though. The numbers don’t add up for the developers.
Now that you can work from home, what’s the risk in buying a condo? If you get a job in another city, you don’t even have to move in some cases.
Chicago’s housing market has always been fairly stable, at least compared to some other big cities. We have land and can build on it.
“Plenty of people buy 2/2s and live there for 10 or 20 years. Gasp. Fewer people are getting married. Even less are having kids. Nothing wrong with a 2/2 condo as your home. And with rents rising, it may make more sense to own it over a long length of time. Every person has to run the numbers and decide for themselves. The NYT rent-v-own calculator has always been really good too.”
How many stay for 10+ years?
“People in Chicago are really blessed. We have a lot of options of units at all sizes for “affordable” prices. Tell someone in San Francisco that they could buy a 1200 square foot 2/2 with parking and w/d in the unit for $450,000 and they would lose their minds. But our market is different. We continue to build high rises and mid-rises and 4 and 8 flats.”
People in Omaha must even be more blessed
“Harder to get new construction 2/2s under $500k now though. The numbers don’t add up for the developers.”
Was harder. Nobody is going to buy a 2/2 $500k shitbox @7% The Reed is going to be a great test case
“Now that you can work from home, what’s the risk in buying a condo? If you get a job in another city, you don’t even have to move in some cases.”
Losing money
“Chicago’s housing market has always been fairly stable, at least compared to some other big cities. We have land and can build on it.”
You just said developers can build a 2/2 for <$500k, so what are they going to build
I hope the stupor is post Bears loss and not from hitting the bottle this AM
“You just said developers can[‘t] build a 2/2 for <$500k"
They obviously can, at least when their land basis is under $25k/unit.
Does make me wonder why all the affordable housing developments seem to be $550k+ per unit, usually with free land, and minimal amenities, few if any larger units, etc. Comes across as a grift.
We bought a 2/2 in LP and lived there five years as young marrieds in the late 1990’s/early 2000’s. Worked well for us. Had our first kid while living there and stayed till he was two. Good to have the amenities. Our mortgage was around 7.5%, if I remember correctly, so similar to now.
However, we made a lot of $ selling, which wouldn’t be the case today, I suspect. We sold near the early-2000’s peak. It turned out to be a great investment, but we had no control over timing of the market. Just got lucky.
“They obviously can, at least when their land basis is under $25k/unit.”
No longer exists in the GreenZone.
There’s a lot more to the city than just the green zone.