Saturday, March 28, 2009

"Benefit?" of the Real Estate Collapse

Many stories have been written about the victims and losses in the collapse of real estate values, but few about the "winners". Here's one:

Coyote Ugly! This fine establishment (I am reminded of the line in Animal House when the fraternity representative is defending the Delta house by saying that it has "A long history of existence") sits on what would appear to be a very valuable tract of land in the River North area of Chicago. Given that the Coyote can't be a high rent tenant and it takes up a lot of a city block, you'd figure that some real estate developer would knock it down (wouldn't take much, the damn thing is practically a tent and it is a wonder that it doesn't just blow over)and put up a big condominium or the like.

But now that NO ONE can get financing for any type of new construction (and the existing construction is at risk of sitting there, half completed) the Coyote will be protected, likely for many years, since this bust will take a while before the animal spirits of capitalism rise again in the form of easy bank loans to finance condominium construction. In the interim period we will have to rely on the low power of that scavenging, mangy Coyote animal on this prime piece of real estate.

Cross posted at Chicago Boyz

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