1. Why should I buy my unit?

2. Will my unit increase in value?

3. How do I resell my unit?

4. What is the reserve fund?

5. Why are the estimated common expenses outlined in the property report higher than our current expenses?

6. What is the condition of the infrastructure of The Garland Building Office Condominium?

7. Does The Garland Building Office Condominium need to install sprinklers?

8. How long will the last major tuckpointing job on the building last?

9. Are the public restrooms on my floor being renovated?

10. Who will handle unit owner construction? As an owner, will I have to manage the work?

 

Why should I buy my unit?
Similar to buying a home rather than renting, owning rather than leasing your office unit offers a number of advantages. These benefits include:

• Building equity instead of paying rent

• Enjoying significant tax advantages

• Investing for appreciation

• Controlling your work environment

• Locking in a prime location

• Facilitating organizational plans such as succession strategy and estate planning

Because The Garland Building Office Condominium offices are well-priced, a purchase now should become more financially advantageous over time.

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Will my unit increase in value?

• Historically, real estate has been an excellent investment.

• Office properties in Chicago have demonstrated stable appreciation over time, and we believe the same will hold true with your office condo.

• This neighborhood is enjoying a real renaissance; as an owner, you should benefit from its increased popularity.

• If you make improvements to your unit, you stand to benefit in resale value.

• Office condominiums are a growing market segment in Chicago and around the country, as more office users realize the benefits of ownership; you are entering this market at its early stages and stand to benefit from its growth.

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How do I resell my unit?
Selling your office unit is no different than selling your home. You would either sell your unit directly to a purchaser, or hire an office broker to handle the sale for you. As the office condominium market in Chicago expands, more brokers are focusing on this opportunity and will be able to help market the benefits of ownership.

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What is the reserve fund?
The estimated common expenses outlined in your Property Report fall into two categories:

• Annual operating expenses, day-to-day expenses such as janitorial, security, utilities and ordinary repairs that are currently part of your rental cost.

• The replacement reserve fund, intended for more substantial future expenses — such as fan replacements, roofing or facade repairs — commonly referred to as capital expenditures.

LM Consultants, an independent national consulting firm, inspected every facet of The Garland Building Office Condominium infrastructure to estimate the future need for major system replacements. Because of the significant capital improvements completed over the past few years and the current improvements undertaken as part of this conversion, LM concluded that The Garland Building Office Condominium is in good shape. As part of its review, LM projected that in the next 10 years — from 2006 through 2015 — $1.25 million will be needed for capital improvements. This expenditure breaks down to just $0.04 per square foot per month.

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What expenses are included in the Owners Assessments? What is NOT covered?

• L.J. Sheridan & Co. has consistently — and conservatively — prepared annual operating budgets that allow for variations in expenses and managed those changes to avoid volatility.

• The projected assessments include:

  • Operating Expenses: Common Area Maintenance, Building Insurance (Owner is to maintain their own property insurance), the reserve fund discussed above.

• They DO NOT Include: Electricity used by light and plug-ins within the unit. This is sub-metered throughout the building and billed ack to tenant in their monthly Assessment invoice.

 

In each case, these expenses are part of the normal cost of doing business in Chicago and that these expenses would occur regardless of whether the office environment was leased or condominium.

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What is the condition of the infrastructure of The Garland Building Office Condominium?
The infrastructure of The Garland Building Office Condominium is in excellent condition, thanks to a large investment in recent years.

• Since 1998, the previous owners spent more than $10 million on capital improvements such as tuck pointing, HVAC replacement (more than 50 percent of the building fan systems were replaced), an emergency generator and a multitude of other capital replacements.

• The Developer spent another $5 million through 2007 for elevator modernization,  new ADA restrooms, life safety and other improvements.

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Does The Garland Building Office Condominium need to install sprinklers?

• In 2004, Chicago passed a life safety ordinance requiring that high-rise buildings satisfy certain life safety requirements or install sprinklers. The ordinance focuses on recommendations of the National Fire Protection Association regarding building compartmentalization, communication systems and access to exits.

• The Garland Building Office Condominium commissioned Environment Systems Design (ESD), an internationally recognized engineering consulting firm, to inspect the life safety systems at Garland and compare them to the ordinance requirements.

• ESD recommended certain life safety improvements that will fulfill the ordinance requirements without the need to install sprinklers. These repairs include making improvements to the west stairwell electric closet and fire-hose riser, permanently securing transom panels, installing firefighter phones in the stairwell and performing other minor repairs.

• This work has been completed at the expense of the current owner.

• With these improvements, ESD has advised that The Garland Building Office Condominium does not need to be sprinkled. ESD’s report has been filed with the City of Chicago and is available in the Office of the Building for review.

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How long will the last major tuckpointing job on the building last?

• As stated in the reserve schedule in the Property Report, the exterior cladding is expected to last more than 20 years; thus no significant expenses for tuckpointing are projected in the next 20 years.

• Note that the common expense budget maintains a line item for routine annual expenses that sometimes occur as a result of Chicago’s harsh winters.

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Are the public restrooms on my floor being renovated?

• New men’s and women’s handicapped-accessible restrooms have been completed on certain floors.

• In most cases if they are accessible within one floor of a non-updated bathroom.

• The other public restrooms in the building have recently been inspected and basic enhancements — such as new blade-handle faucets, replacement plumbing fixtures, exhaust improvements, lighting and paint —are being added where deemed appropriate.

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​Who will handle unit owner construction? As an owner, will I have to manage the work?
L.J. Sheridan & Co. has built out nearly every unit at The Garland Building since 1991 and will continue to provide this service to you as an owner. As part of the condominium regulations, there will be an approved list of knowledgeable general contractors as well as electricians and HVAC technicians and other subcontractors, all of whom are especially familiar with the building.

 

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