SR123, Home Buyer in 60601

Question about 1201 s prairie ave, Chicago

Asked by SR123, 60601 Wed Feb 5, 2014

All their listings say that the condos were built in 2007. why are they selling them now and why is their HOA and taxes so low compared to other buildings around

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Take note that the taxes and assessment monthly you are looking at does not include parking assessments or parking taxes. Also, it is a developer that is trying to sell the units so they will often make the monthly payments as attractive as possible, it is a fairly new building so probably nothing much is needed right now but eventually the monthly assessment may increase to cover regular maintenance and reserves for the future. Taxes estimate to 1.5% to 2% of the purchase price as this is what they may be in the near future (about). This is fairly easy to see and get a good idea, although prices are often firm on things like this a good broker can negotiate other things for you such as finishes or and help you sort through the many options for your use now and future resale and basically make sure you are not being taken to the cleaners. Let me know any questions anytime.
0 votes Thank Flag Link Sat Mar 1, 2014
The Grant has been "turned over" and is no longer under developer control. The assessments are set by the Home Owner Association and cover the true actual annual operating costs for the building plus the Reserve Deposit.

Taxes for garage parking spaces are about $550/year and assessments are about $25/month.

The 1.5-2% estimate for real estate taxes is an excellent rule of thumb, and is the calculation that your mortgage lender will use when establishing the tax escrow portion of your mortgage.

In this particular building they will not negotiate on finishes or on price. 14 units have closed in The Grant in 2014, all at list price, with parking included.

When it comes to a Realtor, knowledge is important but experience has a value that can only be gained with time.

Be sure you're working with a Realtor who understand not only the market as a whole, but the specific neighborhood/s and building/s you're interested in.
Flag Sat Mar 1, 2014
SORRY! I just realized that I didn't answer your question about the relatively low taxes and assessments in the building.

Assessments are determined by the developer and are set when the building Declaration and Survey are first recorded. Assessments reflect the percentage of ownership that each unit has out of the entire 100%, and are based on a number of factors including square footage, view, floor height, and are set for each unit relative to all others in the building. For instance, a high floor with a west view that includes the city skyline might be determined to be more valuable than a south view.

The total of all of the assessments is equal to the annual operating budget of the building plus another 10% which is deposited into the reserve account each year and ear-marked for future repairs or improvements.

A newer building will have less maintenance and lower annual operating costs than an older building and so the assessments are usually lower in newer buildings. If/when assessments are increased they will increase proportionately for every unit in the building.

Taxes are also based on the fact that the building is new and hasn't yet been reassessed by Cook County. We have a triennial re-assessment calendar in Cook County. The City of Chicago was reassessed in 2013 and increases in taxes will show up on the 2nd 2013 tax bill which will be issued summer/fall 2014 and due 30 days after issuance. Given the healthy sales in the building I would expect to see an increase in real estate taxes for units in The Grant.

I hope I've answered your questions - let me know if you've got others and I'll do my best to get you complete and correct answers! Sara
0 votes Thank Flag Link Fri Feb 28, 2014
1201 S Prairie is a South Loop high rise called The Grant. It has 298 Units and 53 stories. The building features a rooftop lounge, sundeck and indoor pool as well as a children's playroom and catering kitchen.

There are currently NO resale units available. Resales would be offered by unit owners who purchased from the original developer when the building was first offered for sale in 2007.

There are currently 13 units under contract, waiting to close, and 10 units for sale by Related Realty, a national firm which purchased unsold units in bulk from the original developer when they went under.

Related has units for sale which were finished by the original developer which they call CLASSIC FINISH. The Classic Finish features wood floors and cabinets and granite. Other units which had not been finished when they acquired the building are being finished in a more modern style which they call the SIGNATURE FINISH. The Signature Finish features white cabinets, quartz countertops and grey wood-look floors.

The Grant is a quality building in a location with protected east views (across train tracks, Lake Shore Drive and the lakefront). It is dog and family-friendly, and is an excellent option with easy access to the Museum Campus, Soldier Field, the lakefront, and all that the South Loop and City of Chicago have to offer.
0 votes Thank Flag Link Fri Feb 28, 2014
This is a good building. The old developer went into foreclosure. The remaining units were bought by Related. They have redone a lot of the units as well as the common areas. Although its not built new today, its recently redone.

I would be happy to discuss more about the building with you.
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0 votes Thank Flag Link Wed Feb 5, 2014
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