THE FORMS OF FINANCE he financilztion of architecture occurs through the formal con- dion of building, including their sting, massing, proportions, and dimensions. This formalisms serves the absorption of sur plus capital while simultaneously increasing opportunities for speculative investment and the liqudiy that such investment neces- sitates Ieis possible to trace the Binancialzation of architecture sero many instances where intensified conditions sllow widespread char- sexerisics tobe seen in sharp rele. This chapter identifies five specific spatio-fnancial types: iceberg homes, exurban investment mats, Super podiums, ultra-thin pencil ower, and financial icons. These types collectively funtion ina nancial ecology. Some serve primarily 2 pro- viders of investment liquidity, while others moce solely a absorptive sites of weh storage, butcllcivel they workin concerfr different ‘movements and moments of pital in the bul environment, leebergHomes London and New York strata disproportionate amount of global investment in el estate In 201 or instance, overseas investors spent 5. billion ($85 bilion) on London hosing -an amount greater than “| oma | lis the UK governmentinvestment in the Mfordable Housing Programme for the entire country" Te gant pool of money’ influ into London resulted in a unique sptiofnancial type that oalcalleeberg homes. ‘Many ofthe most desirable ares forthe wealthy in London —such 2 Chelsea, Mayfai, Knightsbridge, and Westminster consist primar- ily of Vietriaa mansions and townhomes tht are modesty sized in relation vo the comtemporary standatds ofthe very rch, These neigh- borhoods are governed by zoaing egulations thar stety limit above- trade additions. Starting around 2005, che superwealthy began to exploit the absence of laws concerning building activity below grade, inventinga new way ta tore wealth. Adem Voli, one of theachiecs| involved in designing some ofthe more extravagant iceberg homes, was ‘qwored 3 saying, “Weaalyzed che planinglaws and realized they co¥- ted everything shout the surface ofthe ground, but nothing beneath i There was nothing whatsoever thit could stop vs from driling all the way down tothe south pole" In these neighborhoods, it became common for exiting nasionso be augmented by two or thre stories of underground space tha extends beyond the foorprit ofthe original shoveground sructreIn Kensington and Chelss sls, there were 35 batement exten sion plnsing applications in 2014 compared to 180 in 2040" Astady conducted at Newestle Universi examined the approved developmen plans for basement extensions to existing homes across seven London boroughs beeween 2008 and 2017. During his period, 785 “large hae rents” (defined as two sories in depth or one story extending far beyond the fotprnt ofthe existing house) and 110 “mega basements (at leas hree stores in depth orto stories extending fr beyond the ‘exising foorprin) were approved” Roger Burrows, who spent time mapping London's iceberg man- sions called the phenomenon “uated wogladyts." As the icebergs reach varying depths and extents under the ert, ightng becomes ert. ical Some homes have an ary of skylights extending across he garden Tawa to bring light xo roms below. But as natal ight eannot make it ‘everywhere, artificial ighting takes on greater significance; photographs ‘of underground spaces revel a wealth of cove and asceillamination Programmatialy, these subteranean zones ar very patcula.The pe ‘xing shove-grae stroctare remains the primary location for every- ay activites of cooking, ating, sleeping, and living. The below grade spaces typically function as an extended terior of esue,eaertain~ nent, and lusury-goods storage and display. The large and mepabase rents analyzed by Newcastle Univesity include roughly 1,009 gyms, 175 pools 450 cinemas, and 380 wine cellars. The pools nd movie spaces function as devies of escape, enveloping the senses to wanscend the inmediae. The aesthetic range within thee leisure territories appenrs ‘broad, fom contemporary minimalism to colorful raditional Turkish tiling. The lighting, themed interior decorating, pool, ad cinemas er sepa worlds ately epurate from abore ground conditions ‘Near the beginning of the BBC documentary Millionaire Bazement Wors she owner ofan ieserg enanson witha waterfall fed subteres ean pool adorned with Buddhist statues marks that visitors often say the space is "better than the Four Seasons.” Jon Hu, the billion- tire founder of Bish al eat agency Foxtons, caused a minor media sensation when he proposed anextehsin roughly No foe (24 meters) beneath grade and with aot lor ara cf ver so,eo0auare fee (0 square meter)" His proporl included scar moseum” anda Feria tvhee) alongside the more standard tennis court and swimming pool "The hotl reference and Ferris wheel are not coincidental: they make explicit the operations of these underworlds of capita absorption, which fuetion ae private hoes and personal Dimeylands Tceherg homes have proven contentious in London. Westminster City Counsillo Robest Dass sid in 2016, when the council enacted new rales simed at cubingiebergs, "We at sticking up for local resi dent, many af whom have found the explosion of basement develop rmentin recent yeas hellish." In some eases, exuberant excavations lt tothe gradual sinking of land and nearby buldings Ta. sensational asereported inthe London press, an excavation for 2 managing director at (Goldman Sachs purportedly resale in a neighbor being wrapped in her house In 20, the sity of Westminster and the borough of Kensington and Chelsea adopted policy that limited the footprint of basement "extensions to 50 percent ofthe exterior area ofthe lot and banned them lander listed heritage buildings.” Westminster also introduced » base meat tx and established a“subteranean squad” of coun offices ded ‘cated to policing basemen extensions.” The retictions appea o have ‘educed te amount of subterranean construction, The real tae market, ‘alysis ir Glenigan compiled data that showed applications for bus iments declined by 27 percent in Kensington snd Celen ad 22 pereent in Westminster in 2016" "The emergence of iecberg homes demonstrates the agility of epi tulin finding new tervtorie for pail absorption. These westh caves, removed from weather and other humans, manifests kind of fn tasy eal Thove che boy ean be perfected through fitness or sered through the sensual pleasures of bathing and iavoication, and any thing can be heard or watched uhough audiovisual eyeteme These pri- ‘rate theme parks of wealth are sensual pleasure machines, bu by hiding underground, like inverted mini-tomers, any sense of metropolitaism tas been replaced by the lane lation of capital absorption, Exurban investment dats The exurban investment mat ia fnancalsypology that houses mid Ae- or lowerincome nhabians atthe periphery of existing urban ab rie. Its primary mandate ito maximize the number of discrete spatial investment atts in he form ofthe home. Irisakin to mats stock offer- ing. To provide a lage numberof inexpeasive asses, the cxurban mat minimizes expenses for both developer and oweer/iavestor by reduc ing thre thing: and cos, construction cost and pared of ownership. ‘These rstepes allow housing units to enter the market with zlaive speed and to he sold a relativey low prices Itisin the exurban periph cy where cheap land ie found, which s why exarban mats fel urban sprawl Construction costar reduced through the economies of sale achieved through building large numbers of standardized and repeated ‘nts, The patel of ownership is minimized by increasing the density of 2 given development so chat each unit of ownership bears les land cost, andy miximizing the eral sizeof the house. ‘The atcitetural forms ofexurban commodity housing vary from ‘cular to colrs. In Spain, the peipheieoflargr cies have witesed tm immense increase in midis couriyar housing. These project are Somme hmyped into aew satlites of investment in postmetropol tan islands such ae Residencial Francisco Hernando in exurbin Madi ‘While some vertical exurban commodity housing exists, housing that appears detached defines the type Exurban investment mats are there forebert understood at simple, discrete housing units ha are repeated and arayed serosa larg horizontal expanse. Atits potheoss the pace betwen homes is compressed to such depre that they beg to func The speculative logicof exurban investment mats becomes especialy apparent during rel estate booms, Leading upto 2008, pai, Ireland, ‘nd pars ofthe United Sate, for example, sw large extensions oftheseasin he repo of an eset sande ousig trot mol aay expanded sal ad medio tow cos he ml Shug, Blrcand aera powgrapy ees many et ovoldhimcs hr norhs due foi ce ely tho pero thboom Thi drama atti ep oo {Spuonay mode wn dost Inthe Unite Ste cons seh ‘Taube Moen, Las Vos Sues Cfo ind Bape ‘idles Ha a denon ines ine |, seta hosing. Tih piety ofthe oes fame palin wich Gnge W Buh roma soe when eared "We're creating..an ownership roves in this country, where more Ame ne than ever wil beable open p their door where they lve ands, welcome ro my house, welcome tomy pose of propery" ‘One ofthe most intense and perfected forms ofthe exurban inves sment mat is found in Mexico, In 1991, in legal shift similar to the nae niet ein etn enactment of Spain's 1998 Land Law, Mexico allowed gos a tadi- onl form of communal land that was largely agricultural and on the periphery of cities, wo be privatized” Approximately ten yeas late, under Presiden Vicente Fx, Mexico embarked on a pblie-privateven~ treo provide affordable housing fr milins ofthe country’s poor. By 2012, more than ifteen milion housing units had been constrcted and $109 billion spent inthe largest residential construction boom in Latin ‘American history” Thousunds of housing developments were built 2208 the country, often 0a far-flung former agricultural or compro rise land. Approximately one-sixth of Mereas population moved to ‘one of thesenew developments. “These housing mats were a primary mesnsoffinancalzation ia ‘Mexico, The government lender INFONAVIT provided millions ‘of moregages to people with lle income or savings. Inthe 19705, INFONAVIT buile around 25,009 social housing units per yea, by 2013 it was giving out more than 5o0,cc0 mortgages per year* The ‘World Bank ad che nter-Ameccin Development Baak inverted bes ily in the governments elforand encouraged the introduction of ‘mortgage-backed securities” A significant portion of Mexico’ pop- ‘lation became first-time homeowners, pulled ito 2 financial orbitwith mortgages that wer often ied oan ination index and payments lzctly deducted from paychecks. The purchases ofthis privately built soca housing were financed with mortgages that were secutive. By 3506, Mexican mortgage-bucked securities reached a value of $6 bil lion, making Mexico she largest market of ts type in Latin America” Private developers built she housing, fueled by global investors hoping to generate large capital prot In 2005, the Chicago-based fund Equity Invsrnational invested $33 milion into x small construction company in Sinaloa called Home. Te years ate, the company went publican the [New York Stock Exchange with a valation of $09 million and soared billion a global investors, including Wall Steet investment banks and US pension funds, poured epital into the company” In San Buenaventura in Tstapalaca, onthe edge of Merico City, exurban investment mats comprise 2,000 identical housing uit." ‘These uits are within ewo-story duplex structures with party wall eon- sions that form 3o0-fot(go-mete)row-housig blocks. The Blocks are repeated ove a lage expanse with no other programs or amenities such parks schools orretal spaces. Fach unit has smal oat yard, vith an entry door visible tothe sret. The individual duplexes pro forward in pln to give the visual impression that each is freestand> in. While allche units, duplexes, and bloeks are constructed idenialy, the buildings sometimes have vated color schemes to give the minimom semblance of aiation, ‘An inhumane see of repetition maximizes mertgageable units cross ahorizontal expanse af inexpensive land ia tapauca The ian ‘il logic ofthe mt made posible and also concealed by appealing to the desire fora single-family home. While expansive and wnrelening, these tracts have Been conceived with formal characteristics that gener- auethe semiotic impression ofthe single-family home with yard. There isa visual lineage stretching back othe post-World War Il Levittown ‘housing development ia the United Staes, bur this siulrity is barely maintained, asthe open spac betweea discrete structures in that model has been compresed to only a visual effet in San Buenaventu. In describing this and similar development aezoss Mexico, the Mesican chitct Tatiana Bilbao writes, “Living here becomes nightmare. You ‘can paint them in righ lively colors but thestution beneathis just a ‘leakand horrible“ Superpodiums For at long there hae been rowers, there have hesn variants tht sit 0p podiums. But podium towers have taken on a newfound prom inence inthe era of finance capitalism, Aa important origin of the finance-cpitalse superpodium canbe traced to Vancouver in 1999, ‘when Cambridge Gardens, a condominium with two towers sit- ting stop a podium of New York-style row houses, was completed [Architect James Cheng has sad of his project, “a those days in Vancouver, ya ether had a tower or houses, and nobody ever com bined the ewo,..(Cambridge Gardens] sold out in two hours, which ‘vas uneaed o in Vancouver at the tmes™ The podium snd rower fr tla went on so become the basic building block of new Vancouver Tecan now be found in many cies around the world, especially those ‘with combination of pid new growth nd heightened international realestate investment, such as Dubai, Miami, and Toronto. What is somtimes claimed tobe the largest master-planned urban commnity in che world, Dubsi Marin, deploys residenial podium towers is basicurban type Podium towers are defined by a low-rise base from which one or ‘more towers rise. There are many iterations, but the podium often con- thins grourd-osiented housing of ancillary programs such as ret, Shared amenities, nd parking, The popularity of podiums is due toa ‘broad arayofiy-making ideas, che of whichis "abi." From this ideologial vantage, podiums semingly mitigate the perceived shor ‘comings ofhigh-densty housing, When they inch townhomes, 3¢n Vancouver, they ate advocated for tei ability to provide Jane Jacobs style eyes onthe street. They sometimes include neighbortood ame~ rites uch as daycare centers and ar galleries. In cher instances, they ae more overly marketed a private enclaves separated from the messy “anpredictablty ofthe public domain. la many sespcts, the podium tower is 2 perfect neoliberal avatar a postpoliial mide ground between the diminutive premodern cle ofthe town house andthe large sealeof mat housing towers ‘Subject othe intensity of finance apts, the poi sometimes contors into the extreme, becoming ssuperpodiom. Compared to ear- lie forms of podioms, the seperpaium tends to exhibit some combina tion of being extre-expansive, formally eberant,o programmatically barogue Vancourer’s Aqui condominium projet isan eal exampleof such superpodium. The privately accesible podium roof incorpo sates an arfial and elevated ecology of various plants and species, including a large, fsh-stocked pond where local herons ad eales fed Ika romantic enclave of apparent sotsinabilty that functions a an experiential and optical amenity fr the wits towering above it This baie model as since taken on more grandiose dimensions and ambitions. con Bickel located in dowatowa Miami and designed by Arquitectonica, has three towers rising from = podium, with an immense pool and leiarescape rxzed far above the ground plane (one ‘ofthe thre podium eop pooeis 21 et [64 meters long. In nb, “orks Center incorporates large shopping mall under an undulating {green roof from which more chan ve hundred units of housing rise in four generic rowers. nall thes instances, the podiums have enlarged and absorbed ambicous formal and programmatic cole, providing iso lated words of purported specifiy upon which generic large-scale investordrivea housing asume semblance af aniquenes ‘Seperpodiums heighten the ligviity of housing by csing resi dental towers off the ground and placing them on new and isolated| ‘ground. This elevated ground plane assumes the programmatic and formal ingeage of contemporary desire romantic nature in the form of ponds, fern, rocks, and fish t Aquarius, Permanent vacation in he form af sunbathing decks, swimming pools nd poolside bar at Leon Brickell A folded greenscape at Zork Cente, synthesizing the appear anceof bch ustanabily and art. A continu of sure, nature, shop ping, and sculpuel formalism offers an almost infinitely extended ste for investor housing. The podium roofrcapes provide iterchangesble sites" chat are disconnected from the ground, which allows commod ity housing unis to hover separtely above ina global pool ofinvstment, assets This delamination berween the specify ofthe pod and the tower's standardized units allows thote units to become moe inter- changeable nd readily exchanged, thereby increasing thi liquidity Uttra-ThinPenei Towers While cpital absorption responded t strict bylaws in London by extending below grade, in New York speculative wealth storage reached skyward "The architecture erie Paul Goldberger wrote in 2014 that, Manhatan'saew crop of resdenil towers are mucha, mach hint id mh sh mare expense shat ‘her predecron And los everyone them seems bu robles hinnes nd pie than the oe hat came belo Few popleateialined to moarahe end ofthe ge ofthe lanury sporement builigs ony ah, Bat wht isteplasingi which Youigh ll he est way of hosing i isanesizly sew kindof owe, penal hia ad perl” The easily wadable unite ofthese condominium spindles combine the wealth-storage function of the London iceberg home withthe asset umber maximization ofthe exrban investment mat, bot with liguidity that exceeds what the superpdium provides while the podium «ffctvey abstracts the unitsby providing abate from the ground, the peaciltower accelerates thisanction by being ulrathin. Structural engineers generlly defines tower as slendet—what i sometimes called a peniltower-if thas a width-to-height ato ':10 or higher" The World Trade Center towers, by comparison, had 11:7 ratio, Tis important to note that pencil towers ate an exclusivelyresidential housing phenomenon thir mall lor plates ate not sit- shlefor most eyes office work, The form s intimately related wo ee ‘vated rea estate price in the ra of finance caitlin. Pencil towers stated wo emerge in Hong Kong inthe 180s in concere with that y+ dramatic housing cor atcens Hong Kong ail has the highest aumber ‘ofslendrtowers inthe worl. Higheliompletdin 2225, witha ratio ‘of 20, isthe world’s slenderestesideatial building. But he wl-tin towers that have entergedin twenty fre-cenury Mankattan ae unigue in being both very slender and very tall—nller than their Hong Kong, counterparts The current iteration of pencil tower in Manhattan had prerisis roots. For example, One Malis, which began construction in 2005 has aslenderness ratio of r:r2 but relatively modes: 62-foot (a8p-metr) height. As of 2000, thereat en new supertal (more chan ‘900 feet [275 meters) and ultra-thin residential towers in Maakatan, witht least wo additonal ons peoposed they have ben designed by srchitects including David Childs, Robert A.M. Stern, and Jean Nouvel, ‘These towers are magaetsfor capital. As of 320, the most expensive home purcasein th history ofthe United Seite i condominiun unit in a building with aslenderess ratio of tt8 In 2019, Kea Grif the founder af Ciadel, the gan hedge fund and financial services company based in Chiago, pai $338 milion forthe penthouse at 220 Central Park South. Frequently, the ownesship of Manhattan's pene rowers shrouded secrecy, concealed through aumbered companies and com- plicated networks of intermediaries. And units often si largely empcy, revealing thee tue function a specalative wealth storage assets among the portfolio holdings ofthe global ele ‘A buildings slender proportion snot coincidental to this nancial function, ase allows indvidoal units of investnent ca become highly abstract and simplified. The ultra-thin proportion allows fewer units (often ust one) per flor essentially placing 2 ust alone in the sky and Aisentangling i fom messy interactions with the public and neighbors. ‘The very proportions help achieve a rtionles spa commodity that «canbe owned from afarand exchanged reaively easily ‘The epicenter ofthese towers is mideown Manhattan, whers they ‘command preeminent views ove Central Park: The fis of this new ph Tanx was Ones7, designed by Christan de Porta ad fished in 2014, With 92 condominium wit on top of 210-o0m hotel 1:8 len- dermes aio, and a height just over 1200 Feet (305 meters), twas the‘alles esi building inthe Western Henssphere upon complesion. ‘One of is two penthouses sold for more han $90 milion toa hedge fond ‘manager who, according tothe Wal Sree Jornal didnot plan to live there but vo hol tara investment.” In 205, Rafael Vitaly’ 432 ack ‘Avene surpased Onesy'shuight to become the tallest residential build- ing in the worl and the tallest building in New York City by coo height, With jee 204 unt, es 196 fet (426 meer) all witha 15 sleadens tio. stop residene sl for $95 lion. Towers currently inconstrction wil srpas 433 Parkby various mesures Scheduled for ‘completion in 2020, Cental Park Tower, designed by Advan Smith + Gordon Gill Architecture, will reach height of 1550 fee (472 meters) vith a2 dlendernese eto, SHOP Architects 191 Wes 70h Street's 4 foot(435-meter) 200 will noc overtake Central Pack Tower’, but itsxy slenderness ati wll surpass Highclf'sto make tthe slendeest tesidental tower inthe world 1 wil be he world’s second-talls es ‘ena building and willhave only iy-cight individual condominium tani, Soller unit will occupy entre Noor, while larger ones wil pan line floors. By offering vertal column of housing unis that are freestanding onl four sides, rrx Wes s7thSeret will achieve some of the spatial atsibuces of single family ome, but far from the unpredict- silty ofthe publ round pane. ‘While Manhattan ia center ofthis asset-based architectural ams git tnt the only location i which pencil towers re being bul. Callas Hovse in Melbourne has slenderness ratio of 116 and 2 rot igh of 669 fet (204 meters). The ICE Condos, completed in 2015 in "Toronto, havea slendernes rato of just over 1:15 Marina rr, 2018 in Diba ato of greater than 1 1;and The Pia, zoroin Panata City, aratio of 3, Financialicons Cultural an institution flies with unique and highly differentiated form, materiality, and sale have assumed s heightened Snancil role inthe era of finance capitalism, More than ever, ths architecture seers steuued to attracting investment This funtion is famously enshrined asthe Bilbao Effect, by which Frank Gehry’s undulating, taium- ‘esuildingsn many cits in the wold ae o longer offces—a change ‘hac has happened during ee ascent of nance capsalism. This change symbolically announces the shi from an emphasis on wealth accumula ‘ion through production to wel sccamlation through nancial spec- ‘lation, The extremism in scale and proportion san important change in itl but invokes architectural and technologial mutations along ‘other rants to male that change viable. Icons fnd novel ways o bend, contort, and shine. Changes to elevator cabling and structural systems sllow pencil towers to stand. Excavation steategies alongside dynamie LLED lighting make underground wealth vaults posible. The fonction ‘of building as nance necessitates comprehensive transformation of liose al hings architeetarl