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Chicago will grant $150 million in subsidies to real estate developers to convert unused office space in the once-vibrant downtown district into hotels and apartments in hopes of revitalizing the deteriorating area..

Under the plan — the most generous by any city addressing the commercial real estate crisis sparked by the pandemic — the taxpayer money will help create 1,000 apartments in four buildings, as long as about a third will be set aside as affordable units, according to The Wall Street Journal.

The move comes as the Democrat-led Windy City has been plagued by rampant crime and the flight in recent years of major companies — including Ken Griffin’s hedge fund Citadel and aerospace giant Boeing. Griffin said the last straw in his decision to relocate Citadel to Florida in 2022 came after a colleague was robbed while having a gun pressed to his head during a coffee run.

Aside from the city’s lawlessness, Chicago’s office market has been beset by weakening demand, higher interest rates and difficulties in refinancing, The Journal reported.

Mayor Brandon Johnson, a progressive who defeated Lori Lightfoot last year, ran on a platform of increasing taxes on businesses. But he has been forced to ally with the real-estate community to save the downtown’s commercial office district.

Earlier this year, he appointed a real-estate executive to lead the citys Department of Planning and Development, and Johnson’s subsidy plan has earned praise from the business community.

In March, Chicago businesses backed Johnson’s plan to sell up to $1.25 billion in housing and economic development bonds designed to spur economic growth and the construction of more affordable homes.

He does not want to be the mayor who loses downtown, David Reifman, who served as commissioner of planning and development under former Chicago Mayor Rahm Emanuel, told The Journal.

Other US cities — including New York, where some unused office buildings are being converted into residential real estate. — have faced similar difficulties since the pandemic, but Chicago’s woes are the among the worst.

In early 2020, Chicago’s office vacancy rate was 11.9%. In the second quarter of this year, the vacancy rate stood at 16.3% — well above the national average of 13.8%.

Last year, fewer than five large-office buildings were sold, according to the Building Owners and Managers Association of Chicago. The deals that were finalized resulted in losses ranging from 50% to 90%.

Data from KBRA Analytics shows that three-fourths of the mortgages that back Chicago office space are either in default or are at risk of default.

Chicago, the birthplace of the skyscraper, has seen some of its tax revenue dry up thanks to the declining values of commercial real estate.

In a sign of just how dire the commercial real estate market is nationwide, Starwood’s Real Estate Income Trust, which is run by real estate mogul Barry Sternlicht and his company Starwood Capital Group, announced that it would impose tighter limits on investors’ ability to pull money from the $10 billion fund.

The move by SREIT is seen as an effort to delay selling off assets at a loss. By the end of April, SREIT had just $752 million in available liquidity, according to Bloomberg News.

Before the move, investors could redeem withdrawals of up to 2% of net asset value. Now they could only withdraw 0.33%.

Sternlicht said in an emailed statement that the company believes “the real estate markets are bottoming and will continue to improve from here” and thus “further leveraging the vehicle or selling our portfolio’s assets to meet monthly redemptions would negatively impact all investors.”

Treasury Secretary Janet Yellen said earlier this year that she expects additional bank stress and financial losses from weakness in the commercial real estate market but believes this will not pose a systemic risk to the banking system.

Yellen told a Senate Banking Committee hearing that regulators are working with banks to address risks caused by higher post-pandemic vacancy rates for many office buildings in larger cities, and higher interest rates for refinancing loans.

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Sources: Nats demote All-Star after all-nighter

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Sources: Nats demote All-Star after all-nighter

The Washington Nationals demoted All-Star shortstop CJ Abrams to the minor leagues after he stayed out all night at a Chicago-area casino, leaving only hours before a Friday day game against the Chicago Cubs, sources told ESPN’s Jesse Rogers.

The 23-year-old Abrams led off for the Nationals and went 0 for 3 with a walk and strikeout in Friday’s game, which started at 1 p.m. CT. He was informed of the demotion Friday night, sources said. He will be sent to West Palm Beach, home of the Nationals’ minor league complex.

Because Abrams has been with Washington for the entirety of the season, the demotion will not affect his service time. Players earn a full year of service with 172 days on the major league roster, and Abrams already has exceeded that threshold.

Abrams could, however, file a grievance through the Major League Baseball Players Association to fight for lost pay if he believes the demotion unjust. He would lose around $30,000 of his $752,000 salary for missing the season’s final week. Abrams will be arbitration-eligible this winter, entering the system for the first of four times as a Super 2.

Acquired as one of the centerpieces of the Juan Soto trade two years ago, Abrams parlayed a breakout first-half into an All-Star selection, hitting .268/.343/.489 with 15 home runs and 15 stolen bases over the Nationals’ first 89 games. He struggled significantly in the second half, slashing .203/.260/.326, and Abrams’ defense has been a weakness throughout the season.

Still, the Nationals did not intend to send him to the minor leagues until they learned of his time spent at the casino, which was first reported Friday by CHGO.

“I just want it to be known it wasn’t performance-based,” Nationals manager Dave Martinez told reporters Saturday. “It’s an internal issue. I’m not going to give specifics.”

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At least 44 people killed in Israel strikes on Lebanon and Gaza in last 24 hours

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At least 44 people killed in Israel strikes on Lebanon and Gaza in last 24 hours

At least 44 people have been killed in Israeli strikes on Lebanon and Gaza in the last 24 hours. 

A strike on the Lebanese capital Beirut killed at least 31 people including three children and seven women, the country’s health minister Firas Abiad said.

Beirut
Beirut

Fifteen of the 68 wounded in the attack remain in hospital.

Ali Harake, the head of the rescue team searching through the rubble, told Sky News his team is still looking for between 17 and 18 missing people – though he fears none have survived.

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‘I think the missing people are dead’

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It is understood two apartment blocks in a densely populated southern neighbourhood collapsed in the strike – the deadliest attack on Beirut in decades.

Beirut

Top Hezbollah commanders are believed to have been meeting in the basement of one of the buildings.

More on Hezbollah

Hezbollah has confirmed two of its senior commanders, Ibrahim Aqil and Ahmed Wahbi, died in the strike while an Israeli military spokesperson said that at least 16 Hezbollah militants were killed.

Beirut

Wahbi oversaw the military operations of the Radwan special forces – a commando unit that seeks to infiltrate and carry out attacks in Israel – until early 2024. Aqil was also a top commander for the Iran-backed group.

The Palestinian militant group Hamas has described the killing of Aqil as a “crime” and a “folly”, adding Israel will “pay the price”.

Read more: Israeli airstrike on Beirut causes more shock to a country already rocked to its core

Meanwhile, at least 13 people have been killed in Israeli strikes on Gaza City, according to a local report.

The strikes are believed to have hit several schools sheltering displaced people in the southern part of the city.

Palestinians inspect a school, which was sheltering displaced people, after it was hit by an Israeli strike, amid the Israel-Hamas conflict, in Gaza City, September 21, 2024. REUTERS/Dawoud Abu Alkas
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Inside a school, that was sheltering displaced people, after it was hit by an Israeli strike this morning. Pic: Reuters

A Palestinian man walks on a street after a school, which was sheltering displaced people, was hit by an Israeli strike, amid the Israel-Hamas conflict, in Gaza City, September 21, 2024. REUTERS/Dawoud Abu Alkas
Image:
The street outside the school. Pic: Reuters

The strikes come after Hezbollah launched one of its most intense bombardments of northern Israel in nearly a year of fighting, largely targeting Israeli military sites.

Israel’s Iron Dome missile defence system intercepted most of the Katyusha rockets.

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Hezbollah said its latest wave of rocket attacks was a response to past Israeli strikes on southern Lebanon.

It came days after mass explosions of Hezbollah pagers and walkie-talkies killed at least 37 people, including two children. Some 2,900 others were wounded in the assault which has been widely attributed to Israel.

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Fire rips through arms depot deep inside Russia after huge Ukrainian drone attack – as Zelenskyy prepares to meet Trump

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Fire rips through arms depot deep inside Russia after huge Ukrainian drone attack - as Zelenskyy prepares to meet Trump

A fire has ripped through a Russian missile depot in the Tver region deep inside the country after it was targeted in a Ukrainian drone attack, the defence ministry in Moscow has said.

Footage shows a second Ukrainian drone attack on the southwestern Russian region of Krasnodar also triggered a fire and caused a series of explosions.

Russia’s defence ministry has claimed its forces shot down 101 Ukrainian drones over Russian territory and occupied Crimea during the overnight attacks.

The drone strikes were carried out as Ukrainian leader Volodymyr Zelenskky said he is hoping to meet Donald Trump next week when he travels to the US – where he will present US President Joe Biden with a “victory plan” in relation to the war.

An explosion after the drone strike on the arms depot in Krasnodar
Image:
An explosion after the drone strike on the arms depot in Krasnodar

Meanwhile, Ukraine’s foreign minister said Russia appears to be planning strikes on Ukrainian nuclear facilities before the winter.

Posts on local Telegram channels said a Ukrainian drone attack struck an arms depot near the town of Toropets, in Russia’s Tver region – which is about 380 kilometres (240 miles) northwest of Moscow and about 500 kilometres (300 miles) from the Ukrainian border on Saturday.

Russian authorities closed a 100-kilometre (62-mile) stretch of a highway and evacuated passengers from a nearby rail station.

The depot appeared to be just miles from a Russian weapons arsenal storing missiles, bombs and ammunition in Tver that was struck by Ukrainian drones early Wednesday, injuring 13 people and also causing a huge fire.

Flames rise during an explosion, amid the Russia-Ukraine conflict, in Toropets, Tver region, Russia in this screen grab obtained from a social media video released on September 18, 2024. Social Media/via REUTERS THIS IMAGE HAS BEEN SUPPLIED BY A THIRD PARTY. NO RESALES. NO ARCHIVES.
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Flames rise after the strike on the Tver region on Wednesday. Pic: Reuters

Meanwhile, at least 1,200 people were evacuated from Russia’s southwestern Krasnodar region after an ammunition depot and missile arsenal were struck in the second drone attack overnight, the local governor has said.

Most of those evacuated were staying with friends and relatives, Veniamin Kondratyev, the governor of Krasnodar region, said on the Telegram messaging app.

There were no immediate reports of casualties in either Tver or Krasnodar.

Ukraine warning of attacks on nuclear sites

It comes as Kyiv is urging the International Atomic Energy Agency (IAEA) and Ukraine’s allies to establish permanent monitoring missions at the country’s nuclear plants as it warns they could be targeted in Russian attacks.

“In particular, it concerns open distribution devices at (nuclear power plants and) transmission substations, critical for the safe operation of nuclear energy,” foreign minister Andriy Sybiha wrote on X.

Read more from Sky News:
Body found in search for missing TV chaplain
Parents die on Hawaii ‘babymoon’
Anthony Joshua’s shot at greatness against Dubois

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A mushroom cloud rises after the drone strike on Toropets in the Tver region. Pic: Reuters
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A mushroom cloud rises after the drone strike on Toropets in the Tver region. Pic: Reuters

Zelenskyy prepares for US trip

Meanwhile, the Ukrainian leader has said he plans to meet Republican presidential candidate Mr Trump on either Thursday or Friday next week.

During the trip, Mr Zelenskyy will present Mr Biden with a so-called victory plan as he hopes to bring about an end to the conflict.

Volodymr Zelenskyy with Donald Trump in 2020. Pic: Reuters
Image:
Volodymr Zelenskyy with Donald Trump in 2020. Pic: Reuters

The Ukrainian president has said the plan will include long-range striking capabilities and other weapons long sought by Kyiv, and will serve as the basis for any future negotiation with Russia.

He is also expected to push Washington to lift restrictions on long-range missile strikes inside Russia.

Mr Zelenskyy will attend sessions of the UN Security Council and General Assembly and also plans to meet vice president Kamala Harris, the Democratic candidate in this year’s US election, in separate meetings on 26 September.

The developments come as three sources have told Reuters that Iran did not include mobile launchers with the close-range ballistic missiles that Washington has accused Tehran of delivering to Russia for use against Ukraine.

The sources – a European diplomat, a European intelligence official and a US official – said it was not clear why Iran did not supply launchers with the Fath-360 missiles, raising questions about when and if the weapons will be operational.

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