stjorthotic Chapter 335 A Real Estate Project That Makes Everyone Money
Chapter 335 A Real Estate Project That Makes Everyone Money
Chapter 335 A Real Estate Project That Makes Everyone Money
The two were engaged in a heated discussion when two young men pushed open the door and walked in. They were taken aback when they saw Sullivan and Larry chatting, and then immediately stood up to greet them.
"These are my assistants," Sullivan said casually, his mind still on the previous topic.
The assistants were very perceptive, quickly serving the two distinguished guests black tea and bringing them chairs.
Larry and Matthew finally had time to sit down after being in the office for so long.
Sullivan didn't care about such things. He picked up a charcoal pencil, tore off a piece of white paper, and began to sketch on it with clear lines.
As if by magic, seemingly simple lines swiftly outlined the shape of a building. The building's lines are very simple, but it is by no means a simple block—
Larry stood aside, holding a cup of red tea, watching the spectacle.
Sullivan sketched out the framework of an eight-story apartment building, looking at the charcoal lines, nodding and then shaking his head.
"I feel like this is a warehouse, not a place for people to live. This kind of building is cold, rough, and devoid of warmth," Sullivan concluded.
"Why don't you think about it another way?" Larry leaned forward, holding his teacup. "If the structure is supported by reinforced concrete beams, then the outer layer becomes just the surface. We can add bigger windows, create more open balconies, and even let sunlight in through the entire glass curtain wall—"
Sullivan's eyes suddenly lit up—
Larry continued, "Stairwells, pipe shafts, and elevator shafts are all integrated into the core, allowing for flexible partitioning of the interior space—a doctor's study, an engineer's studio, a housewife's sunny kitchen—all can be customized to meet specific needs."
Sullivan suddenly looked up at Larry and said in a low voice, "You know what, I really hadn't thought of this—if we could do it this way, then a lot of things could be approached differently and started over!"
Larry took a sip of tea, casually set the teacup aside, and pointed to the building sketched in charcoal, saying, "This also has an advantage: the construction period can be greatly shortened—provided the steel structure and concrete are compatible."
Sullivan frowned. "Are you still imitating the factory?"
“No, I’m liberating housing,” Larry said firmly. “Haven’t you noticed? Traditional brick houses are like cages, each household nailed to a fixed layout by load-bearing walls. Reinforced concrete structures, on the other hand, allow homes to change as people live. When a child is born, a nursery can be created; when parents live together, two rooms can be combined; and after retirement, a more suitable environment for their later years can be created.”
Sullivan didn't speak, but looked out the window.
Two young assistants also came over to look at Sullivan's sketches. They had already learned from the conversation that the building would be constructed of reinforced concrete, and their faces were filled with astonishment.
"Is this okay? Can this be used to build an apartment building?" someone asked.
"There are advantages too. Do you remember the Monardnock Building? That 16-story building had 1-meter-thick brick walls as supporting walls, which was already the limit for brick structures —" another assistant muttered.
Larry smiled silently, waiting for Sullivan to sketch out an unprecedented new architectural structure in his mind.
Unlike Chinese architecture where the main hall is located on the ground floor, the most prestigious part of traditional Western architecture is the rooftop, and the higher the better.
This is certainly because the air and views are better at higher elevations in castles. However, on the other hand, because load-bearing walls occupy a very large space, the ground floor of Western-style buildings is relatively small and feels cramped.
Therefore, in Western-style architecture, the wealthier a person is, the more likely they are to occupy a high floor.
However, the taller the building, the greater the limitations—load-bearing walls are like building blocks; you can't make a building infinitely taller just by laying bricks.
But reinforced concrete structures changed all that; buildings could continue to grow upwards, and steel structures brought a brand-new architectural framework.
At that time, people had already begun to use steel structures in the main load-bearing beams and some key load-bearing walls.
But as Larry said, the entire building is made of reinforced concrete—which still greatly challenges people's current ideas.
Even if this person is a master of the famous modern architectural school—the Chicago School.
Of course, the steel-concrete structure that Larry is talking about now is not the kind of steel structure and concrete pouring that we see in later times. It is more like a steel frame made of low-carbon steel columns and steel beams, with the exterior walls enclosed by hollow red bricks and the floor slabs filled with brick arches and concrete.
In short, it's a bit simpler than the Empire State Building's reinforced concrete structure. But since it's not a skyscraper, it's sufficient.
Sullivan pondered for a moment, then turned and said, "I thought the Chicago School was modern and unconventional enough. I didn't expect your ideas to be even more radical than mine. But I'm still worried that this kind of architecture lacks warmth and aesthetics."
"Are you worried that concrete is too cold?" Larry joked with a laugh. "Actually, steel can have warmth too—we use a steel frame to support eight stories; the exterior walls are just the skin of the building, like clothes for a person. The steel structure is the skeleton, and its biggest advantage is—"
"An industrial skeleton dressed in artistic clothes!" Sullivan suddenly interjected.
“Yes!” Larry looked at the other person. “Just as you wish, form should follow function. High-rise buildings should express a new kind of functionality.”
Sullivan nodded. "This kind of building will also have much better fire resistance. Um, another thing is that the soil in the back bend area is relatively soft, so we need to build a solid foundation so that the steel structure can be embedded into the solid rock layer, which will also improve earthquake resistance."
Larry didn't understand what he was saying next, he just smiled and waited on the sidelines for Sullivan to make a decision.
After pondering for a full two minutes, Sullivan turned to Larry and said solemnly, "Mr. Livingston, tell me your complete plan."
Sullivan's words were a tacit admission that he was going to accept Larry's commission. Larry took out a charcoal pencil from his desk and roughly sketched out the sketch that Sullivan had just made. "This is not an apartment building. I named Building A the Pillar of Light. It has eight floors and three units per floor. This is the king of the buildings."
"—What is a 'king of buildings'?"
"It's the main building of the residential complex, and also the most expensive one," Larry replied. "It's the heart of our project, and its face. I need this building to have the fewest units, the largest area, and the most beautiful viewing salon on the top floor."
Sullivan frowned slightly, but nodded quietly nonetheless.
Larry continued, pointing to the space next to the penthouse, "Because it's right next to the Charles River, I need Building B and Building C on either side of the penthouse. They'll both be six stories high, with six units per floor, facing the Charles River, and they need to have large balconies."
""
As he spoke, Larry sketched out Buildings B and C next to the Pillar of Light, naming them the Charles Wing and the Garden Wing. These two buildings were independent, yet they resembled wings protecting the main building, creating a harmonious whole.
"In addition, facing the street, I also want a building called D, which we can name the City Wing. The ground floor of this building can be used to set up shops or some smaller apartments," Larry said, drawing as he spoke.
"Of course, we can build some service buildings, about three stories high, including a boiler room, laundry room, staff dormitories, and carriage parking area. I don't know much about this, but you can arrange it," Larry said with a smile.
Sullivan gave Larry a deep look and muttered, "Oh, I feel like you came prepared. If I hadn't personally received you, I would have thought you were sent by some design firm to cause trouble. Your drawings have done all my work—"
"Haha, I apologize for offending you. But I was just stating my own needs—" Larry put down his charcoal pencil.
Sullivan took the charcoal pencil, pondered for a moment, and then extended Larry's charcoal marks.
With just a few quick strokes, the architectural complex of several buildings of varying heights has been outlined.
Sullivan stroked his chin, looked at the charcoal pencil in his hand, and suddenly smiled, saying, "I understand. Your service building should also have a centralized steam heating and hot water boiler for showers, right? That way, each household can have its own bathroom with centralized steam heating."
"Yes, sir! Simply put, this is the Dakota Apartments in Boston, but it's much more advanced, both in concept and in terms of features."
Sullivan nodded, staring at the sketch, then turned to Larry. "Alright, I'll take this job! Now I understand why mathematicians are so desperate to find solutions to this conjecture and that problem—your new request gives me a sense of challenge I've never felt before."
Larry smiled and nodded, saying, "That would be perfect. The reason I rushed all the way from New York to Chicago was for you. With your help, I think the Garden of Light project will make both of us go down in history."
"One last question!" Sullivan turned to Larry, his face grave. "You should know that, if we build it the way you described, the conservative construction cost per square foot for this project would be ten dollars, and I estimate the entire building would be at least 28 square feet."
If you add land costs and other ancillary expenses, the construction cost of your project will not be less than $300 million—are you sure you can create such a world of light?
Sullivan stared at Larry, because this project far exceeded the scale of all current residential and apartment buildings.
It's actually more like a commercial building because the project was already very expensive.
A $300 million project! This is not something that ordinary people can easily negotiate.
Before today, Sullivan had never heard of Livingston.
Larry's smile remained unchanged. Faced with Sullivan's direct questioning, Larry simply replied, "I can, or rather, my family can create such a building."
Sullivan stared at Larry for a few seconds before smiling. "Alright, anyway, we charge 5% to 8% for design fees based on the construction project—if you really want a set of blueprints, I can provide an informal sketch, free of charge! I'll design the complete architectural plans once you've finalized the project budget. Is that alright?"
"Sure! I look forward to your good news." Larry nodded in agreement.
Larry and Matthew left the design firm and strolled through the streets of Chicago. It was getting late, and the gaslights along the streets of Chicago were already lit up.
"It's that same question again: should we eat first, or check into the hotel first?" Larry said to Matthew with a smile.
Matthew's face was grave. He opened his mouth, as if he had a lot to say, but finally he had to say it. "My brother, I shouldn't be meddling in your affairs, but this building is outrageous. Over three million dollars, that's enough to buy the entire Quincy docks—do you have that much money?"
Larry looked at him and said with a smile, "Matthew, why use your own money to build a project like this?"
Matthew was confused and asked, "If you're not using your own money, whose money are you using? I heard that the Ducati Apartments were built by Mr. Clark, the owner of the Saint-Germain Sewing Machine Company, and it was entirely self-funded."
Larry stopped in his tracks. "Matthew, regardless of whether I have that much money right now, even if I did—"
I won't use my own money, because this is a very respectable project, and profits must be shared. If everyone can make money, then there's no need for this project to even begin.
"My God! You're doing a $300 million project just so everyone can make money?" Matthew asked in astonishment.
"Yes! Including you. My brother, you've helped me a lot, and it's time to repay you," Larry replied with a smile.
Matthew waved his hands frantically, "No—I understand you want to take care of me, but that's a different matter."
Isn't this a real estate investment project? How did it turn into a project that everyone can make money from?
Larry patiently explained, "Matthew, who do you think will buy this project?"
"The rich! Politicians, MIT professors, or shipping company owners."
“Exactly!” Larry said with a laugh. “We can also approach them when we’re raising funds—it’s a landmark project that attracts Boston’s elite. Everyone can get a house, an investment, and a good reputation—to be honest, I don’t have to spend much money at all, and I can attract a large number of Boston’s elites.”
Matthew was momentarily speechless. After thinking for a moment, he asked, "Specifically, what are your plans?"
"I will adopt a three-pronged financing model: pre-sale, installment payments, and trust. I will establish a real estate company that will only be responsible for this project. After Sullivan's sketches are completed, I will first build a model building and then hold a private presentation. If anyone is interested in purchasing, they can pay a 30% deposit to reserve their unit."
Then I can use this project and its future rental income as underlying assets to establish a limited partnership trust and raise funds from wealthy local individuals. Massachusetts has a very mature real estate investment trust system, which allows me to both raise funds and lock in interested high-end clients—those interested in the real estate project are often the project's clients.
Matthew's eyes widened. "W-is this even feasible? How can we guarantee that we can raise that much money? Will people invest a million or two million dollars all at once?"
Larry shook his finger. "Not at all! I only need to raise 40% of the project funds—whether it's my own advance payment, a prepayment, or a trust from wealthy people—and then I can apply for a loan from First National Bank of Boston for the rest."
Matthew was even more shocked. He thought for a moment before asking, "So, your Garden of Light project was designed from the very beginning to attract more wealthy people so you could get loans?"
"Of course! Never put your own money into a real estate project! Bringing them in is to increase my own credit," Larry said with a smile. "As long as I have enough credit, I can leverage a larger proportion of funds to participate—then I'll make money, the rich will have houses and prestige, I'll have a group of upper-class friends, and I won't have to spend much money myself. The banks will be willing to foot the bill."
"————"
Although Matthew was intelligent, his mind was not suited for such scheming. After Larry finished speaking, he thought for a long time but still did not fully understand what the other party meant.
Larry chuckled and patted him on the shoulder. "This project is very likely to go over budget, but I estimate we'll only need to contribute 20%."
"Don't worry about the funds, brother! Follow me, and I'll make you rich."
Matthew thought for a few seconds, then nodded with a wry smile. "You know what? Larry. I feel like I'm increasingly falling behind your train of thought—how is your brain structured? How can you be so incredibly smart?"
Larry laughed. "This is nothing compared to the cutthroat competition in the stock market. These real estate projects are much simpler; it's just something we do on the side."
Tomorrow you're coming with me to the Chicago Mercantile Exchange; that's the real reason we're here.
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