The big difference between the two apartments, in my head, isn't the third bedroom (although I realize for my kids, especially my daughter, that is the big difference). It's also not the lower square footage, although I think to Manina that makes a big difference. If anything, I am in a "less is more" mood lately in terms of square footage. For me, the difference is whether we have a dining area.
Here are the floor plans, for comparison. I'll keep you posted on what we decide.
The apartment we have been assigned.
The alternative option under consideration.
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