Doom Loop Accelerating
This appeared in the media last week:
The owner of two of San Francisco’s largest downtown hotels is stopping mortgage payments and going into foreclosure on the properties, stating that the city faces “major challenges” and that reducing exposure to the market is in the best interest of investors.
Park Hotels & Resorts said Monday that it was stopping payment on a $725 million loan secured by the two hotels, the 1,921-room Hilton San Francisco Union Square and 1,024-room Parc 55. The Hilton is San Francisco’s largest hotel, and Parc 55 is the fourth largest.
This ties into our post a little while back about large real estate properties falling occupancy rates, mortgage defaults and big banks desperate to unload this toxic assets from their books. The Bay City is the leading edge of this coming crash.
This was posted two days after the above linked article:
An entity led by Paris-based lender Societe Generale alleged in a complaint that the owner of the 49-story tower at 161 N. Clark St. defaulted on its loan by failing to make its loan payment due in August. The ownership group — a consortium of investors led by South Korea's postal system and advised by CBRE Investment Management — "has indicated that it is no longer willing to participate in the management of the property," according to the complaint, which seeks a court order appointing a receiver to take control of the building.
This building is right on Daley Plaza, the heart of downtown. It's in default and it isn't the only building:
- Among the prominent office properties downtown that are facing foreclosure or have been seized by lenders are the Civic Opera Building on Wacker Drive, the Chicago Board of Trade Building and several vintage office buildings along LaSalle Street.
The Civic Opera Building? The CBOT?
But this article really brings home the scale of the looming disaster:
Now, CME Group, Inc. - which has over a century of history rooted in Chicago, is warning much the same. According to CEO Terry Duffy, they'll cut bait and drop Chicago like a hot stone - and in fact, have begun the process of uncoupling from the dysfunctional city.
"I liquidated every piece of real estate in the state," Duffy said in an interview last week, according to Bloomberg. "I have leases where I am in an advantageous position, because now I can renegotiate. They’re all coming due. We like Chicago. There’s no reason for us to want to leave. But at the same time, if the atmosphere gets to the point where it’s intolerable, we have no choice."
We had said we remembered an article not too long ago about one or more of the major trading floors testing a new computerized system that would "move" the pits out of Chicago electronically, thereby denying BJ and his "progressive" caucus their coveted transaction tax that would fund all of their socialist bullshit.
They say "follow the money" and the money is leaving town.
Labels: money questions
posted by SCC at 12:05 AM
57 Comments:
Let's be honest, the chase policies, the safe T act, the juvenile reform act, the consent decree, the ASA's office destroyed Chicago & made it unliveable. Business and money are leaving. You'd think that may make the Democrats wake up, but no, they'll ruin it & never admit their mistakes.
Oh wait,
the plan was vengeance. It's by design. Remember after an election victory the official would jump around , cheer and bash law and order, maligned the police and say payment is coming. We'll it has. The payment is at worse your rape, robbery, or murder , but compounds a general bearing for all of this: lost businesses, opportunities, and freedom from fear.
There are a lot of people living in the city with blinders. Delusional……. City is in the toilet!
How soon will your home become almost worthless?
12% Mortgages like the 1970's? No jobs because any private sector business has left town?
Gosh, this sounds like DETROIT?!
Everyone, well, almost everyone, will own nothing.
Owning nothing also means oweing everything, since, no one can remain not dead without something.
Of course, being dead = owning both nothing and oweing not a fucking thing, at least not a fucking thing that can be collected.
The few who crave owning everything will find that biting off way more than they can chew is not merely an old adage.
The big money becomes not nearly enough to those who have made greed their god.
A theoretical to imagine: If real property values decline to zero, then, what will the taxing gluttons do?
Sell the house now!
Rent a place until retirement.
Not retiring for 6 or 10 years?
Leave, or buckle down and realize you're probably trapped by your home until things get better.
Worse comes to worse? Take out a second and third mortgage, tell them you gambled it all away, and default. After which you will get caught, convicted of fraud and move into a prison cell for 5-10.
Detroit, Detroit!
That toddling town!
More of the building it back better bullshit
More doom catholic charities f them would not give them a dime helping criminals
https://chicago.suntimes.com/2023/10/11/23890838/catholic-charities-flights-add-number-migrants-ohare
Progressives destroy, they do not create.
Dont worry we got a casino, just like Detroit.
Took almost 100 of Democratic rule to drive the nails in the coffin but it looks like they are getting what they want. You allowed it to happen by voting for these fools. You allowed it to happen by staying silent. You are getting exactly what you deserve. Would the last taxpayer leaving city and state please throw the switch. Leave all those welfare cheats in the dark to figure out how to survive without your money and hard work. Life is good in in most Red states.
Anything south of the river will struggle to lease a single office. No customers are heading that way, DePaul and the other "universities" downtown can't save it either. The city could save the stuff north of the river but seem unwilling, look at river north. It happens slowly then all at once. Billions will be lost.
Socialism works until you run out of other people’s money. Look at what challenges downtown businesses face. An unsustainable economic environment includes but is not limited to excessive taxation, iron fisted control and threats by one party in charge elected officials, obsessive government regulations with regulatory fees and out of control violent crime outside their doorstep. The democrats at all levels of government have created public policy which encourages violent crime creating fear in the working people creating that unsustainable economic environment. Not to mention onerous taxation.
Dems use the courts with its esteemed lawyers to validate and uphold all destructive public policies including taxation and regulatory legitimacy. Keep legislating the need for revenue via taxation from productive people and spend recklessly transferring wealth. Guess what happens next? Re-imagine a downtown void of economic activity. And don’t forget to utilize the tired worn out rhetoric to call out the working people and businesses, the actual economic engine, greedy for not paying their fair share of taxes.
In the meantime, the number pulling the cart dwindles putting an ever increasing financial strain on the producers as the 24 hour a day do nothing leaches riding in the cart dance and sing daily at another’s expense in their deplorable government dependent existence brought to them by a failed compassionate group of ruling class government apparatchiks.
Just an FYI only pits left are the Eurodollar options & the pits at the CBOE. Most is on the screen now
Everything is leveraged to the hilt. I will bet the city county and state mortgaged all assets. The city already does it to incoming tax collections. The Zell class is doing their best monkey see monkey do act.
Blackrock save us!
The sad this is, I don't know if it's since Rahm, Groot, "the summor of love" or your judges, court systems, "equity in sentencing" then opening up the jails....
Like the 1000 birds that hit McCormick Place, the other night, the idiot Democrats repeat, repeat, repeat & repeat!
Too, if you want Chicago news, Sky News Australia, BBC London, and overseas outlets might do a better job than the "legacy media" outlets.
This is not selling a house or a mom & pop business. These are companies, entrenched in the Windy City, leaving and taking millions elsewhere!
The mayor might want to look honestly in the mirror. If it is this bad now, what will it be in 1, 5, 10 years, anf how did it get to this point?
As usual, SCC, excellent reporting.
The toilet is flushing and the civilized people knew it. DemocRATs liberals destroyed this city along with others.
10/12/2023 03:31:00 AM
My 1st mortgage in 1987 was at 12%
I certainly feel like my Chicago is not what it use to be, and for quite some time now.
maybe it is time to say goodbye
Those who forgot the lessons of Detroit will be forced to relive them again in Chicago.
Ayn Rand's "Atlas Shrugged" is playing itself out in all these blue cities, and blue states. These folks keep talking about rich white being the problem. Now that all the rich white people, who are the ones who actually pay the freight in these cities and states, are moving out, those "progressives" will see their world crumble.
Sounds like "Bidenomics" is working...Four more years?
Pritzker and the Chinese waiting to scoop in and purchase this property for pennies….
Mayor BJ does not like business.
There’s a bright spot in all this and that’s next year’s Bud Billiken parade.
In the 1970s a couple I knew actually went on a tour of Russia. I asked them about their trip when they got back. They enjoyed many things like the Hermitage museum and Red Square. Their best quote that I remembered was "those people don't have anything." This lifestyle is coming here.
The 35th Alderman Rosa finance chairman (air head) thinks everything is rosy in downtown. He is a product of CPS Whiteny Young HS and has no idea about FINANCES. We are F***
About a year ago, the restaurant Heaven on Seven in the GARLAND building closed. Across the street from Macys, down the street from Jeweler’s Row, Garland, an older building has a high vacancy rate. Some newer buildings have vacancy rates of 30% or higher. Businesses that depended on office workers are closing. The Palmer House is facing bankruptcy. Downtown is dying and Johnson loots the TIF moneys to balance a ridiculous budget.
Chicango is about one flush away from going the way that Detroit has !
All just part of the lefts plan to flush out business from downtown areas and start packing citizens, “and non-citizens” into their new 15 minute cities, with shimmering bike paths, electric car chargers, one every corner, and city owned (communism) grocery stores. I can just picture David Axelrod and Rahm Emanuel dressed in WWII Nazi regalia exclaiming,
“You vill eat zee bugs und be happy.”
Most inter-cities are crumbling.
You can shop online. Why go downtown in any major city. Far too much crime.
Wow. this really is big news. If you read the CME group one ...
"We don’t want to leave... But we cannot be disadvantaged in the world's most competitive markets," Tilly said in light of an $800 million tax proposal from Mayor Brandon Johnson aimed at plugging a $538 million budget deficit projected for next year, and increasing costs driven by a cocktail of inflation and rising numbers of destitute asylum seekers.
$800 Million. Fucking wow. Liberals will tax everybody away.
Let's look on the bright side we will be filming The Walking Dead soon on the Mag Mile.
This is the the reason our founding fathers struggled about whether to let people with no skin in the game to vote.
We now have a class of people who sit on their asses and vote themselves our tax dollars.
Stuff all the illegals in there.
Worked at 018 from 2005 to 2019,Every year Crime increased and the Criminals got Bolder the Dam has broken.
Duffy's wife was carjacked at 3.00pm last summer in front of the CME .. nuff said
Vacancy rate on MagMile coming close to 40 %.... Hello Detroit
SCC check out a couple things.
1.) pension problem is so bad the Harris policy innovation challenge from
UofC is offered $10k to kids who think they can fix it.
2.) Guinness brewery site in Fulton Marker for sale one month after opening.
Isn't there something going on with the building the Palmer House Hotel is in also?
How much does CBOE and its workforce contribute to the Chicago tax base? They leave lots of high paying jobs and taxes paid go with them. Also another big building available to house the hose freeloading ILLEGALS. What could go wrong with h that senerio? Besides that.
and dispensaries
OT:
New case in federal court today over the unconstitutional Illinois gun ban.
https://youtu.be/-4xn02wQwhU?si=_a5-0BDqL0tERZOo
Notice at the end how the radio host says he was the only media in the courtroom today. Why? Because this judge has been shown to be fair to our 2nd amendment rights. The local mainstream media is in the Democrats pockets and doesn't want to upset their masters by actually reporting real news.
"Anonymous said...
In the 1970s a couple I knew actually went on a tour of Russia. I asked them about their trip when they got back. They enjoyed many things like the Hermitage museum and Red Square. Their best quote that I remembered was "those people don't have anything." This lifestyle is coming here.
10/12/2023 10:32:00 AM"
That is an intended feature of communism. Do you not believe in fundamental change?
"Anonymous said...
More doom catholic charities f them would not give them a dime helping criminals
https://chicago.suntimes.com/2023/10/11/23890838/catholic-charities-flights-add-number-migrants-ohare
10/12/2023 06:06:00 AM"
In 2018-19 Catholic Charities "earned" $56,000 per "settled migrant child" in the United States. Do you think that number is higher or lower now? Catholic Charities is a business. The Catholic "Church" is a business. They are a Sovereign state within Rome, have their own bank, their own standing military/police.
What part of the Bible teaches this?
"Anonymous Anonymous said...
Pritzker and the Chinese waiting to scoop in and purchase this property for pennies….
10/12/2023 09:09:00 AM"
A gold star for you!
Just add....Soros, Blackrock, Citadel, Vanguard.....
"Anonymous said...
Sell the house now! "
Way ahead of ya, friend! Way ahead....objects in the rear view mirror are getting smaller and smaller daily!
mayor Blow Job is over his head and will leave office due to stress
Democrats own the destruction of this once proud city. No matter what they or their media whores say, how they frame it or show through their outlets, it will not change the fact the Democrats are destroyers of cities. We know this by their own words, actions and deeds. BJ and his administration will ensure the city's point of no return will be crossed on his watch. And to think of it, we gave them the power to conduct our own economic, financial and political self-destruction.
Notice at the end how the radio host says he was the only media in the courtroom today. Why? Because this judge has been shown to be fair to our 2nd amendment rights. The local mainstream media is in the Democrats pockets and doesn't want to upset their masters by actually reporting real news.
10/12/2023 05:03:00 PM
The media needs to be tried right alongside treasonous politicians at Gitmo.
Per some Liars at CNBC; Lot of 3% loans coming due in 24, 25 & 26
that have to be refinanced at current 8 plus % IF any Capital so
chooses to tie up for the Rollercoaster Ride.
In Vegas everyone Except the Degenerate Gamblers give Tony Soprano
his taste and walk away.
Brandon Johnson got Chicago House Money [Union pensions TIF cash]
Big Shooter at the Table...Oh wait this idiot not capable of doing
bets on bets off odds. Off to play Keno.
BJ and friends The New NEUTRON BOMB for Cook County. JB aka Hirsh
from Sopranos ["bust'em out Tony!"]
Wait...Ken Hauser said everything would be fine.
"In 2018-19 Catholic Charities "earned" $56,000 per "settled migrant child" in the United States. ... Catholic Charities is a business. The Catholic "Church" is a business. ......." RCINC is the oldest, most profitable multinational corporation on the planet. They continually cry poverty but manage to have the resources to pay 600$/hr. defense attorneys to smear the reputations of victims of sexual abuse by RCINC employees (aka priests).
Even Aarnnooold has caught in in California, but it's a little late Arnie, you went Biden, own it you dumb bastard.
hahahahahahaahah... so it begins! Check your taxes, follow each penny, I'm curious where the money will come from after this news hits. Remember, some of YOU voted for this stuff. Do. Your. Research!
CME, CBOT - all those traders might have a party condo in the City, but the bulk of their property is up and down the north shore 'burbs... CME and CBOT close up shop, those once tony 'burbs are going to become Section 8 shitholes.
Which will be just fine from my perspective - fucking liberals can reap what they've sown.
send buses to the north shore assholes, winnetka, lake forest.....
Isn't there something going on with the building the Palmer House Hotel is in also?
10/12/2023 02:24:00 PM
Retail stores around Palmer House sold out of Bankruptcy..
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