I couldn't find a similar thread, so decided to open up one.

After the Moolah (which has already been discussed in the Movie Theater thread), another nice venue closes doors permanently: the Ready Room.

The Ready Room is looking for a new location to reopen whenever possible. The rent sounds rather high, and I have heard in the past that they have looked into moving due to the rent rate.

Rent was ~$10,000 --- is that normal for a space that size in the City?

chaifetz10 wrote: ↑

May 12, 2020

I'm actually hoping we might see some of the property sharks / speculators experiencing financial difficulty.  Would be nice to see some of the housing stock that's been allowed to decay or empty buildings that have just sat without every going onto the market being forced into foreclosure / default.  

I was actually thinking something along the same lines. This might force some people who speculate full-time for a living to unload some properties that were formerly sitting in limbo/speculation mode.
Those lucky enough to continue working would probably be first in line for the opportunity and they would likely care more about the property than a speculator because they just might actually live in the neighborhood. I know that I am personally expecting to investigate some "distressed debt" opportunities in the near future.
On the sadder flip side, you'll also have some people that need to sell property fire-sale style because they no longer have an income.
The economic bomb has exploded but it will take 6 - 10 months to feel the shockwaves. It's possible that we all look back to the early part of 2020 as the good ol' days. There is much pain and hell ahead for a lot of people and it's economic and not SARS2 Covid illness.

chaifetz10 wrote: ↑

May 12, 2020

Agreed - I'm thinking specifically of those properties that have just sat empty for years or decades.  My wife and I are keeping an eye out for possible investment properties in our area - with the goal of just improving / stabilizing and without kicking out any long term tenants.  

I absolutely hope this happens.

However, why would a property sitting empty for years or decades (thereby generating no income for the owner) suddenly have to be sold? Presumably, that would be due to them running into financial trouble elsewhere, but if that hasn't already happened over years or decades, unless they have gone completely haywire, their position would only be better now after years of accumulating income elsewhere.

Once again, I sincerely hope all of these types of owners are forced to sell and I am a strong advocate for proactive policies to discourage land banking through taxation, etc. But I do not see this current situation opening any sort of floodgates to that end.

^Parking lot and garage owners are taking a huge hit, especially since many of them rely on what was, until now, a risk-free, highly-predictable revenue stream. Of course a lot of the bigger ones are owned by parking REITs or at least have investors, who will be the ones actually taking the hit...

urbanitas wrote: ↑

May 13, 2020

^Parking lot and garage owners are taking a huge hit, especially since many of them rely on what was, until now, a risk-free, highly-predictable revenue stream. Of course a lot of the bigger ones are owned by parking REITs or at least have investors, who will be the ones actually taking the hit...

I took the above to refer to single/multi family neighborhood properties.

You are absolutely correct about parking lots, that could conceivably spur some movement on the positive front for development long term.

stlgasm wrote: ↑

May 12, 2020

Tavolo V (East Loop), permanently closed.

Well that sucks, food was always good and that front sidewalk cafe was great in summer.

However, why would a property sitting empty for years or decades (thereby generating no income for the owner) suddenly have to be sold? Presumably, that would be due to them running into financial trouble elsewhere, but if that hasn't already happened over years or decades, unless they have gone completely haywire, their position would only be better now after years of accumulating income elsewhere.

My guess is a disruption in rental income from their occupied properties? If somebody or some entity owns a mix of occupied and vacant buildings, and they are just sitting on the vacants until economic conditions or their own capital make a rehab attractive they may be forced to sell off some of the vacant buildings if they lose a lot of residential and commercial tenants in their occupied buildings.