What to Know Before Buying a High-Rise Condo in Chicago
Buying a high-rise condo in Chicago is about much more than choosing a floor plan, view, and neighborhood.
When you purchase a condominium, you are buying both an individual residence and an ownership interest in a larger building. The condition of that building, its finances, reserves, insurance, management, rules, planned capital projects, assessments, and long-term maintenance can have a significant effect on your cost of ownership and the future marketability of your condo.
That is particularly important in Chicago, where high-rise condominiums range from historic lakefront buildings to modern luxury towers with extensive amenities and complex building systems.
Whether you are considering a condo in Streeterville, River North, the Gold Coast, Lakeshore East, Lincoln Park, the West Loop, South Loop, or another Chicago neighborhood, careful due diligence should extend well beyond the individual unit.
This guide from 360 Chicago Realty explains some of the most important issues Chicago condo buyers should investigate before purchasing a high-rise condominium.
1. Evaluate the Building, Not Just the Condo
A beautifully renovated condominium can still be located in a financially or physically troubled building.
Before purchasing a Chicago high-rise condo, evaluate two separate investments:
The individual condominium unit
and
The condominium association and building
A renovated kitchen, attractive flooring, spectacular lake view, or luxury primary suite may make a unit appealing, but those improvements do not tell you whether the condominium association has sufficient reserves, significant deferred maintenance, pending litigation, major capital projects, insurance problems, or a large special assessment under consideration.
A sophisticated condo purchase therefore requires both unit-level due diligence and building-level due diligence.
2. Review the Condominium Association’s Financial Condition
One of the most important steps when buying a Chicago condo is understanding the financial health of the condominium association.
Ask to review available financial information, including:
- Current operating budget
- Reserve balance
- Recent financial statements
- Regular monthly assessments
- Existing special assessments
- Delinquent assessments
- Planned capital expenditures
- Recent or proposed assessment increases
- Reserve studies, when available
A building with substantial amenities may legitimately have higher monthly assessments than a simpler building. The important question is not simply whether the assessment is “high.”
The better questions are:
What does the assessment include?
Is the association collecting enough money to properly operate and maintain the building?
Are sufficient funds being reserved for future capital expenditures?
Are major expenses likely to result in additional assessments?
A building with unusually low monthly assessments is not automatically a bargain. Inadequate funding today can potentially lead to significant assessments later.
3. Understand the Building’s Reserve Fund
A condominium association's reserve fund is money accumulated for major future repairs and replacements.
In a Chicago high-rise, those expenditures can be substantial.
They may include:
- Roof replacement
- Facade repairs
- Window projects
- Elevator modernization
- Plumbing systems
- Electrical systems
- HVAC equipment
- Garage repairs
- Fire-safety systems
- Balconies
- Structural repairs
- Waterproofing
- Common-area renovations
The size of the reserve account by itself does not tell the entire story.
For example, a building may have several million dollars in reserves but also face a major multi-million-dollar facade, garage, elevator, or mechanical project.
Conversely, a smaller reserve balance might be more understandable in a newer building with fewer near-term capital requirements.
The key question is:
Are the building's reserves appropriate relative to its age, condition and anticipated capital needs?
4. Investigate Special Assessments
A special assessment is an additional charge imposed on unit owners beyond their regular monthly condominium assessments.
Special assessments may fund major projects such as:
- Facade restoration
- Window replacement
- Roof work
- Garage repairs
- Elevator modernization
- Plumbing replacement
- Life-safety improvements
- Structural work
- Major mechanical-system replacement
Before buying a Chicago condo, determine whether there are:
Current special assessments
Approved but not yet collected assessments
Proposed assessments
Major projects that could reasonably result in future assessments
Also determine whether an existing special assessment will be paid by the seller at closing or assumed by the buyer. This should be clearly addressed during contract negotiations.
Do not stop at asking:
“Is there currently a special assessment?”
Also ask:
“Are there major projects being discussed that could result in one?”
5. Read the Condominium Board Meeting Minutes
Board meeting minutes can provide valuable insight into what is actually happening inside a condominium association.
They may reveal discussions involving:
- Water intrusion
- Roof leaks
- Facade deterioration
- Elevator problems
- Plumbing failures
- Garage repairs
- Insurance issues
- Resident complaints
- Security concerns
- Litigation
- Budget shortfalls
- Assessment increases
- Upcoming capital projects
- Special assessments
- Building-rule changes
Reading recent meeting minutes can sometimes reveal issues that are not obvious during a showing.
Pay particular attention to problems that appear repeatedly over several meetings without resolution.
6. Understand the Illinois Section 22.1 Disclosure
Illinois condominium buyers should become familiar with the information commonly referred to as the Section 22.1 disclosure.
Under Section 22.1 of the Illinois Condominium Property Act, a resale buyer can obtain important condominium information, including condominium governing documents and information concerning assessments, reserves and anticipated capital expenditures.
This documentation can be an important part of Chicago condo due diligence.
A buyer and the buyer's attorney should review the applicable documents carefully during the contract review and due-diligence process.
7. Examine the Building’s Physical Condition
A high-rise condominium is a complex physical asset.
The individual condo may look excellent while expensive problems exist elsewhere in the building.
Areas worth investigating include:
Facade
Chicago buildings are exposed to substantial temperature changes, wind, moisture, snow and freeze-thaw cycles.
Masonry, concrete, sealants and exterior components can deteriorate over time.
Facade repair can become a significant condominium association expense.
Roof
Determine the approximate age and condition of the roof and whether major replacement or repair is anticipated.
Windows
Find out whether windows are:
- The responsibility of individual owners
- A condominium association responsibility
- Original to the building
- Previously replaced
- Scheduled for future replacement
Window replacement in a high-rise can be expensive and complicated.
Elevators
Ask about elevator age, modernization history and planned improvements.
Elevator modernization can represent a substantial capital project in older Chicago high-rises.
Plumbing
Older buildings may have aging risers, supply lines, drain systems or other plumbing infrastructure.
Ask about significant plumbing projects and recurring leaks.
Garage
Parking structures require maintenance too.
Concrete deterioration, waterproofing and structural repairs can create significant expenses.
Mechanical Systems
Understand the building's heating and cooling configuration and which portions are association versus unit-owner responsibility.
8. Investigate Building Insurance
Condominium insurance has become an increasingly important part of condo ownership and mortgage underwriting.
Buyers should understand the building's master insurance coverage and also obtain appropriate insurance for the individual condominium unit.
The condominium association's master policy and the owner's individual condo policy serve different purposes.
Ask your insurance professional to determine what the association's policy covers and what additional coverage is appropriate for your unit, improvements, personal property and liability exposure.
Insurance can also affect financing. A building that does not satisfy a lender's condominium-project insurance requirements can create difficulties for prospective buyers obtaining conventional financing.
9. Confirm That the Building Is Financeable
Buyers sometimes assume that if they qualify for a mortgage, they can finance any condominium they choose.
That is not necessarily true.
The borrower must qualify for the loan, but the condominium project may also be reviewed.
Depending upon the financing program and lender, project review can involve issues such as:
- Building insurance
- Physical condition
- Critical repairs
- Association finances
- Delinquent assessments
- Special assessments
- Litigation
- Commercial space
- Ownership concentration
- Hotel-like or short-term rental activity
For that reason, buyers using financing should involve their lender early—particularly when considering an unusual, older, mixed-use, heavily investor-owned or otherwise complex condominium building.
Do not wait until shortly before closing to discover that the building itself presents a financing problem.
10. Study the Monthly Assessment Carefully
Chicago condo buyers frequently compare buildings by looking only at the dollar amount of the monthly assessment.
That can be misleading.
A $1,200 monthly assessment that includes heat, gas, water, cable, internet, extensive amenities and building services may not necessarily be more expensive than an $800 assessment where several of those expenses are paid separately.
Evaluate:
Monthly assessment
minus
Services and utilities included
plus
Expenses you must pay separately
Then consider the building's financial health.
The objective is to understand the true cost of ownership, not merely the number printed on the listing.
11. Understand Property Taxes
Property taxes are another major component of Chicago condo ownership.
Review the property's recent tax history and determine whether the current owner receives exemptions that may not apply to you.
Also consider whether the current assessed value could change following a sale or future reassessment.
When comparing two condos, compare the total annual ownership cost rather than purchase price alone.
A useful comparison includes:
Mortgage payment + property taxes + assessments + insurance + parking + utilities + anticipated maintenance
12. Understand What Your Assessment Includes
Chicago high-rise assessments vary substantially because buildings offer different levels of service.
Depending on the property, assessments may include some combination of:
- Heat
- Air conditioning
- Water
- Gas
- Cable television
- Internet
- Door staff
- Security
- Building management
- Fitness center
- Pool
- Common-area maintenance
- Landscaping
- Snow removal
- Exterior maintenance
Luxury buildings with extensive staff and amenities generally cost more to operate.
Before comparing assessment amounts, compare what owners actually receive.
13. Evaluate Parking Separately
Parking can materially affect the value and usability of a Chicago condominium.
Determine:
- Is parking included with the condo?
- Is the parking space separately deeded?
- Is it assigned?
- Is it leased?
- Is valet parking used?
- Can the parking space be sold separately?
- Can it be rented to another resident?
- What are the monthly parking assessments?
- Are electric-vehicle chargers available?
- Can an EV charger be installed?
In neighborhoods such as Streeterville, River North, Gold Coast and Lakeshore East, parking can represent a meaningful component of a property's overall value.
14. Understand Rental Restrictions
Even if you intend to occupy the condo yourself, rental restrictions can affect future flexibility and resale value.
Ask whether the building has:
- Rental caps
- Minimum lease terms
- Waiting periods before renting
- Owner-occupancy requirements
- Restrictions on short-term rentals
- Move-in and move-out fees
- Lease approval procedures
A buyer who expects to convert a residence into an investment property later should investigate rental policies before purchasing, not afterward.
15. Review Pet Restrictions
Pet policies vary considerably among Chicago condominium buildings.
Check:
- Number of pets allowed
- Weight restrictions
- Breed restrictions
- Registration requirements
- Pet fees
- Elevator or common-area rules
Never assume that because one unit contains a dog, your pet will automatically comply with current building rules.
16. Investigate Renovation Restrictions Before Buying
This is particularly important when purchasing an older or dated Chicago condo with plans for renovation.
Condominium associations may regulate:
- Construction hours
- Contractor insurance
- Permits
- Architectural drawings
- Plumbing modifications
- Electrical modifications
- Flooring
- Soundproofing
- Structural modifications
- Demolition
- Debris removal
- Elevator reservations
- Construction deposits
- Work performed in common areas
Some renovations that appear straightforward can become considerably more complicated in a high-rise.
Before purchasing a condo requiring substantial work, understand both City of Chicago requirements and condominium association requirements.
17. Check Flooring and Sound-Transmission Rules
Many Chicago high-rise buildings regulate hard-surface flooring.
Replacing carpet with hardwood, engineered wood, tile or another hard surface may require:
- Board approval
- Specific underlayment
- Minimum sound ratings
- Acoustic testing
- Additional documentation
This can matter significantly if you are purchasing a condo specifically because you plan to replace existing flooring.
18. Examine the View—and Whether It Can Change
A spectacular Chicago skyline, lake or river view can command a significant premium.
But buyers should distinguish between:
The view you have today
and
the likelihood that the view will remain substantially unchanged.
Investigate nearby:
- Vacant parcels
- Surface parking lots
- Low-rise structures
- Proposed developments
- Development sites
- Zoning and development activity
No view should automatically be assumed permanent simply because it is unobstructed today.
This is especially important when paying a significant premium for Lake Michigan, Chicago River, skyline or park views.
19. Consider Floor Height
Higher floors often command premiums, but higher is not automatically better.
Consider:
- View
- Natural light
- Wind exposure
- Elevator travel
- Street noise
- Building orientation
- Nearby buildings
- Balcony usability
- Emergency access considerations
A well-positioned lower-floor condo with an excellent protected exposure can sometimes be preferable to a higher-floor unit facing another building.
20. Study the Unit’s Orientation
Direction matters in Chicago high-rises.
East-facing
Often provides morning light and, depending on location, Lake Michigan views.
South-facing
Often provides strong natural light throughout much of the day.
West-facing
Can provide beautiful sunsets but stronger afternoon heat and sun.
North-facing
Often provides more consistent indirect light but less direct sunlight.
Corner units can provide multiple exposures, additional windows and broader views, although pricing may reflect those advantages.
Evaluate the actual unit at different times of day whenever practical.
21. Look Beyond the Model-Home Effect
Fresh paint, staging, lighting and furniture can make a condo extremely appealing.
Look past presentation and inspect fundamentals:
- Window condition
- Water damage
- Ceiling staining
- Flooring condition
- Electrical system
- Plumbing fixtures
- HVAC equipment
- Appliances
- Doors
- Cabinetry
- Bathrooms
- Ventilation
- Storage
- Noise
A beautiful interior should not substitute for proper inspection and due diligence.
22. Pay Attention to Water Intrusion
Water can cause expensive damage in high-rise buildings.
Look for evidence around:
- Windows
- Exterior walls
- Ceilings
- Plumbing fixtures
- Mechanical areas
- Balconies
Ask whether the unit or surrounding units have experienced significant leaks and determine the source and whether repairs were properly completed.
23. Evaluate Noise
Noise is subjective and difficult to evaluate from photographs.
During a showing, stop talking for a moment and listen.
Consider:
- Street traffic
- Emergency vehicles
- Elevators
- Mechanical equipment
- Nearby units
- Hallways
- Dogs
- Construction
- Restaurants or nightlife
- Train noise
- Building equipment
If noise sensitivity is important, consider visiting the property at different times.
24. Understand Move-In Procedures and Fees
High-rise buildings frequently have specific move-in requirements.
These can include:
- Elevator reservations
- Move-in fees
- Refundable deposits
- Limited moving hours
- Approved moving companies
- Certificates of insurance
- Weekend restrictions
Understand these requirements before scheduling movers.
25. Investigate Storage
Do not assume storage is included.
Determine:
- Whether the unit includes a storage locker
- Approximate size
- Location
- Whether storage is deeded or assigned
- Whether bicycle storage is available
- Whether additional storage can be rented
Storage can be particularly valuable in smaller downtown Chicago condos.
26. Evaluate Amenities Based on What You Will Actually Use
Chicago luxury high-rises may offer:
- Pools
- Fitness centers
- Rooftop decks
- Resident lounges
- Business centers
- Screening rooms
- Guest suites
- Dog runs
- Package rooms
- Bike storage
- Valet services
- 24-hour door staff
Amenities can enhance lifestyle and resale appeal, but they also cost money to operate and maintain.
Do not pay a substantial premium for amenities you are unlikely to use without considering their effect on monthly assessments.
27. Investigate Management Quality
Good management can materially affect the ownership experience.
Consider:
- On-site management
- Maintenance responsiveness
- Building cleanliness
- Package handling
- Security
- Communication with residents
- Enforcement of rules
- Maintenance planning
Walk through the common areas carefully.
The condition of hallways, elevators, garage, lobby and service areas can tell you a great deal about how a building is operated.
28. Review Litigation
Pending litigation involving a condominium association deserves careful attention.
Litigation does not automatically make a building undesirable, but buyers should understand:
- Nature of the litigation
- Potential financial exposure
- Insurance coverage
- Expected resolution
- Possible impact on financing
- Possible impact on future assessments
Your attorney and lender should evaluate material litigation when appropriate.
29. Compare Recent Sales Within the Building
Chicago is highly building-specific.
Two condos located a block apart may command significantly different prices because of:
- Building reputation
- Assessments
- Financial condition
- Amenities
- Views
- Unit size
- Floor
- Parking
- Renovation quality
- Architecture
- Management
- Location within the neighborhood
For that reason, comparable sales inside the same building can be particularly valuable.
Then expand the analysis to competing buildings offering similar properties.
30. Calculate the True Cost of Renovation
A dated condo selling for $100,000 less than a renovated condo is not necessarily the better value.
Estimate:
Purchase price
plus
Renovation
plus
Design and professional fees
plus
Permits where applicable
plus
Building construction fees/deposits
plus
Temporary housing if necessary
plus
Contingency
Then compare that total with renovated units already available.
Renovation can create substantial value, but the numbers should be analyzed before the purchase.
31. Use Appropriate Professional Advisors
A high-rise condo transaction can involve several disciplines.
Depending upon the property and transaction, a buyer may benefit from working with:
- Real estate consultant or broker
- Real estate attorney
- Mortgage professional
- Home inspector
- Insurance professional
- Accountant or tax professional
- Architect or designer
- General contractor
- Engineer
The appropriate team depends on the complexity of the property and your plans after closing.
Chicago High-Rise Condo Buyer Due-Diligence Checklist
Before purchasing a Chicago high-rise condominium, consider investigating the following:
The Unit
- Purchase price and comparable sales
- Square footage and floor plan
- Views and exposure
- Natural light
- Windows
- HVAC
- Plumbing
- Electrical
- Appliances
- Flooring
- Water intrusion
- Noise
- Storage
- Parking
- Renovation requirements
The Condominium Association
- Monthly assessments
- Assessment history
- Reserve balance
- Current budget
- Financial statements
- Special assessments
- Planned capital expenditures
- Board meeting minutes
- Reserve study, if available
- Delinquencies
- Litigation
- Master insurance
- Management
The Building
- Roof
- Facade
- Windows
- Elevators
- Plumbing infrastructure
- Mechanical systems
- Garage
- Balconies
- Common areas
- Amenities
- Security
- Package handling
Rules and Restrictions
- Rental restrictions
- Pet restrictions
- Renovation rules
- Flooring requirements
- Move-in procedures
- Leasing requirements
- Parking restrictions
Location
- Walkability
- Public transportation
- Grocery stores
- Restaurants
- Lakefront access
- Parks
- Traffic
- Nearby development
- Potential future view obstruction
Financing and Closing
- Condo project eligibility
- Lender review
- Appraisal
- Attorney review
- Inspection
- Insurance
- Property taxes
- Closing costs
- Existing special-assessment responsibility
Popular Chicago Neighborhoods for High-Rise Condo Buyers
Streeterville Condos
Streeterville offers one of Chicago's largest concentrations of high-rise and luxury condominium buildings.
Buyers are attracted by proximity to Lake Michigan, the lakefront, Michigan Avenue, Northwestern Memorial Hospital, Navy Pier and downtown Chicago.
The neighborhood contains everything from established residential towers to newer luxury developments.
Because building age, assessments, amenities and financial condition vary considerably, building-specific due diligence is especially important when buying a Streeterville condo.
River North Condos
River North combines high-rise residential living with restaurants, galleries, entertainment and access to the Chicago River.
Condominium options range from converted loft buildings to luxury towers.
Buyers comparing River North condos should consider nightlife, traffic, noise, views, parking and proximity to future development in addition to the individual residence.
Gold Coast Condos
Chicago's Gold Coast contains both historic residential buildings and modern high-rises near Lake Michigan, Oak Street, Rush Street and Michigan Avenue.
Older buildings may offer distinctive architecture and larger traditional floor plans, while newer properties may provide more contemporary amenities.
Financial and physical due diligence becomes particularly important when evaluating older Gold Coast condominium buildings.
Lakeshore East Condos
Lakeshore East offers a concentration of newer high-rise residences surrounding Lakeshore East Park, with convenient access to the lakefront, Chicago River, Millennium Park and downtown.
Buyers frequently compare Lakeshore East with Streeterville and River North when seeking newer construction and extensive amenities.
West Loop Condos
The West Loop has experienced substantial residential development and offers modern condominiums near restaurants, Fulton Market and downtown employment centers.
Buyers should pay particular attention to surrounding development because neighborhood density and views can change as new projects are constructed.
South Loop Condos
The South Loop offers a broad range of high-rise condominiums with convenient access to downtown, Grant Park, Museum Campus and the lakefront.
Building age, amenities, assessments and proximity to transportation vary substantially throughout the neighborhood.
Frequently Asked Questions About Buying a Chicago High-Rise Condo
What should I check before buying a condo in Chicago?
In addition to inspecting the individual condo, investigate the condominium association's finances, reserves, assessments, insurance, meeting minutes, planned capital projects, litigation, building condition, rules, rental restrictions and renovation requirements.
What are condo assessments in Chicago?
Condo assessments are regular payments owners make to the condominium association to fund building operations, maintenance, services, amenities and reserves. What is included varies by building.
What is a special assessment?
A special assessment is an additional charge to condominium owners beyond regular assessments, generally used to fund a particular expense or capital project.
How important are condominium reserves?
Reserves are an important indicator of a condominium association's ability to fund major repairs and replacements. The appropriate reserve level depends on the building's size, age, condition and anticipated capital expenditures.
Can a condo building affect my mortgage approval?
Yes. Mortgage underwriting can involve both the borrower and the condominium project. Insurance deficiencies, critical repairs and certain other project characteristics can potentially affect conventional financing.
Should I read condo board meeting minutes before buying?
Yes. Available meeting minutes can provide valuable information about building maintenance, financial concerns, capital projects, resident issues and potential assessments.
Can I renovate a Chicago high-rise condo?
Often yes, but renovation is typically subject to condominium association rules and applicable municipal requirements. Obtain the building's construction and renovation requirements before committing to a major renovation.
Are higher condo assessments always bad?
No. Assessment levels should be evaluated relative to what they include, the services and amenities provided, the building's financial condition and its long-term capital needs.
Is parking included when buying a Chicago condo?
Sometimes, but not always. Parking may be deeded, assigned, leased or sold separately. Confirm the exact ownership structure and ongoing parking assessment.
Which Chicago neighborhoods have high-rise condos?
Chicago has significant high-rise condominium inventory in neighborhoods including Streeterville, River North, Gold Coast, Lakeshore East, South Loop, West Loop and portions of Lincoln Park, among others.
A Better Way to Buy a Chicago High-Rise Condo
A condominium should not be evaluated solely by its countertops, finishes, view or asking price.
The strongest purchase decisions consider:
The Unit
The Building
The Association
The Financials
The Location
The Future Capital Requirements
The Total Cost of Ownership
At 360 Chicago Realty, our approach goes beyond the transaction. We help clients evaluate real estate from multiple perspectives—including acquisition, investment considerations, property condition, renovation potential and construction-related considerations.
If you are considering buying a Chicago high-rise condo, particularly in Streeterville, River North, Gold Coast, Lakeshore East, Lincoln Park, West Loop or surrounding Chicago neighborhoods, contact 360 Chicago Realty to discuss your objectives and the property you are considering.
360 Chicago Realty Real Estate Consulting Beyond the Transaction
*This guide is provided for general informational purposes and is not legal, tax, lending, engineering, insurance or accounting advice. Buyers should consult appropriately qualified professionals regarding their individual transaction.*