Evanston co-op apartments half the price of a condo purchase ($160,000 vs $300,00!)

The living room at 1585 N Ridge, Unit 411, Evanston, IL 60201. We sold the large one bedroom, one bathroom unit pre-MLS for $130,000 Eric Rojas, Broker, Kale Realty

Cooperative apartments in Evanston might be the value you have been looking for in our relatively expensive Chicago and North Shore housing markets. Is a co-op apartment for you?

- 41 co-op apartments sold in Evanston over the last 12 months.
- The median price of a sold co-op is about $165,000.
- Over the same period 397 condos sold with a median price of $300,000.

Check out some of the differences purchasing into a co-op apartment building.

Contact me to buy, sell, rent or invest in Chicago and near suburban real estate. erojas@kalerealty.com

We recently sold three Evanston Co-Op apartments... ask me about Co-Ops!

 

The kitchen at 1585 Ridge Avenue, Unit 310, Evanston, IL 60201 pictured above. The two beds, one bath Unit 310 sold for our list price of $149,900. We worked with three separate Co-Op apartment sellers in the same building earlier this year. All photos Eric Rojas, Broker, Kale Realty or VHT.com

We recently sold three Evanston co-op apartments. Apartment cooperative (co-op) ownership is different than condo ownership. We help you understand the difference so you don't make a Co-OOOPS!

"You’re buying shares in the nonprofit corporation that owns the building. You’ll receive stock instead of a title as you would with a traditional home purchase" as described by Rocket Mortgage. The nonprofit corporation has much more control and "leeway" concerning the apartment building rules, regulations and final decision in approving a sale of those company shares.

The living room at 1585 Ridge Avenue, Unit 411, Evanston, IL 60201 pictured above. We sold the large one bed, one bath unit to a well qualified buyer for $130,000 prior to the unit hitting the MLS.

Some "Pros" to buying a co-op in Evanston or Chicago can be the price and stability. Due to often stricter rules and stricter conditions buying into a co-op the purchase price can be lower than market rate condos. Those stricter rules can also be a PLUS for a shareholder who wants a stable building with no renters (or no pets for example) and less owner turn-over. 

The main difference in purchasing and selling a co-op apartment is the current shareholders can accept or deny a purchaser based on their finances and their intended use of the unit.  For instance the managing shareholders may require a full cash purchase or 20%- 50% cash down for a purchase (much stricter than a mortgage lender for example) for a purchase or a certain level of current income. Additionally they may only allow shareholders to live in the unit (and not a roommate without shareholder status). The nonprofit conducts an interview with prospective shareholders and can deny their purchase if the whole package does not meet shareholder qualifications.

The kitchen at 1585 Ridge Avenue, Unit 302, Evanston IL 60201. We sold this two beds, one bathroom co-op apartment sold for $170,000 including a garage parking space.

There is no interview process in a condo building. Generally if you can buy a condo with cash or you qualify for the mortgage... you CAN buy it.  Current owners cannot deny you based on finances or require more money down. A condo purchaser/ owner is subject to the home owners association by-laws and rules and regulations but the purchase and sale are less restrictive processes.

Ask us about buying and selling co-op apartments!  We have experience in helping buyers and sellers understand the ins and outs of making a transaction happen! Eric Rojas, Broker, Kale Realty erojas@kalerealty.com

North Center small multi-unit sales down in 2024, prices up slightly

 

A view of original two-flats and a new construction home in North Center. Several of these may be single family home conversions now. We also see a two-flat has been torn down for new construction. All photos Eric Rojas, Broker, kale Realty

41 small multi-unit buildings (two-four flats) have sold from January 1st to October 4th of this year.  The median price of these sales is about $790,000. In 2023, 57 unis sold with a median price of $775,000 over the same period. in 2022, 69 units sold with a median price about $780,000.  Unit sales are down significantly like most housing types. Low inventory has been the main culprit as owners hang on to their low mortgage interest rates from a few years ago.

4146 N Campbell, Chicago IL 60618 in North Center sold for $579,900 by
Eric Rojas, Broker, Kale Realty erojas@kalerealty.com
All photos property of VHT.com or Eric Rojas, Broker, Kale Realty

The purchase of small multi-units offer flexible options for property owners.  You can live in one unit and rent out the remaining units (traditional lease or possible vacation rental business). New Additional Dwelling Unit (ADU) city ordinances may help you realize further investment opportunity by adding a basement apartment or backyard "coach house" unit depending on allowable zoning capacity. You may opt to convert the multi-unit to a single family home (popular choice with two-flat purchases in North Center). Some multi-units are completely torn down for brand new single family home construction.

While some areas in the city face stricter ordinances that slow down demolition or conversion of multi-units, the North Center community area faces less scrutiny. Despite higher than average median purchase prices and relatively higher interest rates North Center is still a popular area to convert two-flats to single family homes or tear down completely and build a new house.

  

Client buys Mid-Century gem in Flossmoor, median price up 15%

 

Built in the 1950s this super cool ranch sits on a large corner lot close to Flossmoor downtown and Metra station. Photos Eric Rojas, Broker, Kale Realty

Earlier this year we helped our clients secure a sprawling Mid-Century ranch home at 934 Gardner Road, Flossmoor, IL 60422 for $450,000. Our buyers shed their long time East Lakeview condo for greener pastures (a big yard and garage!). However, they faced the decision of convenience vs commute.  With the influence of long-time friends they realized Flossmoor provides easy Metra access to our clients' offices in downtown Chicago. Not only that... there are some cool houses and a cute downtown!

Flossmoor features a traditional downtown with a Metra station to downtown Chicago. 

Flossmoor single family home sales

Median price of a sold home in Flossmoor is up 15% over last year. 79 single family homes sold from January 1st to October 3rd with a median price about $365,000. 77 homes sold over the same period of 2023 with a median price of about $320,000. A whopping 129 homes closed over the same period of 2022 with a median price of $325,000. In 2021, 150 single family homes sold with a median price of $290,000.

Contact Eric Rojas, Broker, Kale Realty to buy, sell and rent real estate on the North Side of Chicago AND the suburbs. erojas@kalerealty.com

New Northwest Side "preservation ordinance" hurts small multi-unit owners

 

A Logan Square preservation ordinance along "The 606" elevated park trail on the North Side has inspired similar ordinances in adjacent areas. Photo Eric Rojas, Broker, Kale Realty 

The new "Northwest Side housing preservation ordinance" is problematic to me. This was rushed through the city council with little public debate. I don't know why Alderman continue increase taxes and regulations on small business and property owners. Do they think owning real estate and business in the city is a walk in the park? We're all greedy? My biggest issues are:

1. A tenant right to first refusal to purchase a multi-unit building when an owner wants to sell. The tenant buyers can force a contract with the owner BUT do not have to prove financial ability to purchase nor have to deposit more than 5% of the purchase price. The process can hold up sales for minimum but in effect much longer.

2. The tenant right of first refusal may be assigned to a 3rd party, further complicating sales for property owners.

Here's a summary of these issues in the ordinance:

Notice Timeframe & Right Of First Refusal Timeframe: 1-2 Units: 30 day notice required prior to sale, 15 day right of first refusal 3-4 Units: 30 day notice required prior to sale, 30 day right of first refusal 5+ units: 60 day notice required prior to sale, 90 day right of first refusal Timeframe to close if tenant ROFR is exercised: 5+ units: 120 days to exercise right of first refusal 1-4 units: 60 days to exercise right of first refusal.

"If purchaser purchases a rental property AND USES ANY PUBLIC FUNDS IN THE PURCHASE, then the rental property shall be maintained as affordable housing for no less than 30 years".

Financial assurances; deposit. The owner may not require the tenant association to prove financial ability to perform as a prerequisite to entering into a contract. The owner shall not require the tenant association or tenant(s) under Section 5-11-070060(b)(3), to pay a deposit of more than 5 percent of the contract sales price in order to make a contract. The owner must refund the deposit in the event of a good faith failure of the tenant association or tenant(s) to perform under the contract.

View the area and major points below. In my opinion there should be exemptions AT LEAST for owners with fewer than a dozen units... or some sort of compromise. These are often live-in owners or they invested and lived in a building than moved on to another home while keeping the rental building.

Chicago CityScape

WTTW also reports