Contrarian thread on downtown Chicago real estate: Out of 20 global financial capitals, Chi has the cheapest RE. Why? Shit-show state & city fiscal situation hopelessly intertwined with very toxic politics (coming pensionpocalypse and destabilizing socio-economic inequality).
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While Chi might be the 1st distressed U.S. city bought by a private equity firm, this could (perhaps ironically) be an eventual positive for many RE owners, as their high finance masters will know how to juice their dominion with low-taxes on financial assets & RE.
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On the bullish side, you have an 800-pound gorilla: 3rd largest city & 2nd most important financial nerve center in U.S.: the booming downtown stands in contrast to the negative headlines. This glimmering Midwestern NYC-on-the-lake has simply too much momentum to stop it.
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With downtown Chicago real estate at prices of a third (and often less) than that of NY, LA & Boston equivalents, LT investors might look very smart one day buying elite Chicago real estate & holding through the coming financial storms.
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Nice contrarian thesis. Probably best way to execute on what your saying is to wait for things to get worse though and they likely will with markets at ath
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