GENE BIONDI WAS HIGHLIGHTED IN A FORBS 2017 ARTICLE WRITTEN BY CONTRIBUTING WRITER, OMRI BARZILAY, TITLED “WHY CO-OPS MAY BE A THING OF THE PAST.” IN THE ARTICLE, BIONDI DEFINES THE ATTRIBUTES OF BUYING INTO ONE OF THESE ESTABLISHED AND ARCHITECTURALLY SIGNIFICANT BUILDINGS.
According to Gene Biondi of Coldwell Banker Residential Brokerage, “The sale of Co-Op properties in Chicago can be a bit slower than condos..." But the 2018 Spring Market has been energetic. Biondi has recently had three Co-Op properties at 227-237 E. Delaware go on the market—and two of them have almost immediately gone under contract. Biondi's love of architecture and Co-Op living was made obvious in the 2017 article when he said that the buildings have "...uniquely beautiful architectural details and wonderful interior space.“
A Co-Op is a corporation that owns a group of housing units—as well as the common areas—for the use of all the residents within that building. The individual participants own a share in the cooperative, which entitles them to occupy an apartment (or town house) as if they were owners, to have equal access to the common areas, and to vote for members of the Board of Directors—which manages the cooperative.
A cooperative differs from a condominium project in that the owners of the condominium units actually own their airspace and a percentage interest in the common area. In a cooperative there are often restrictions on transfer of shares such as giving priority to other members, limits on income or maximum sales price.
Although the market may be a bit slower for co-ops, Biondi still sees many benefits in purchasing one, ”The HOA fees are higher but conveniently include property taxes. The idea—in the Midwest—of buying shares instead of actual square footage, is a common setback and the myth that everyone will know the potential buyer’s business becomes another deterrent. However in reality, co-ops are well managed, with only the management company aware of the potential buyers financial status, so sensitive information is kept confidential. There are no rentals, which keeps property values elevated and the old myth of ‘only paying cash for op-ops’ is untrue. Most financial institutions will lend to the buyer with twenty-five percent down.”
Let me know if you have any questions. I'm happy to help and available for all of your Real Estate needs.
Gene Biondi, Residential Broker
Coldwell Banker-Gold Coast
[c] 773.519.1340
