Here’s a deal that sounds pretty good on its surface, but bears some close scrutiny by homebuyers to determine what’s really on the table. The Enterprise Companies promises substantial savings on property taxes at its University Commons loft conversion, an 834-unit project at 1000 W 15th St in the University Village neighborhood.
In a recent ad, the developer touts up to $5,000 in tax savings each year for eight years (as well as rebates of up to $3,000 on closing costs). On the builder’s Web site, Enterprise promises savings of “up to $6,000.” If you read the fine print on this page, however, it’s clear that no one is sure how much, if any, potential savings buyers might realize. And it’s clear that despite the ads and Web promotion, the project has not yet been approved for the Illinois Property Tax Assessment Freeze program, which caps the assessed valuation of a historic property for eight years at its level during the year rehabbing began (we have no reason to believe U Commons won’t be approved, but a buyer focused on the big cash figure could easily miss this detail).
Only initial condo owners who occupy the units as primary residents can reap the full benefit, and figuring out just what that benefit might equal is at this point, impossible. We’d love to hear from buyers and builders who have experience with this program at developments involving other historic buildings. Click on “Comments” below to let us know how the tax freeze worked, or didn’t, for you.
Last we checked, by the way, construction was proceeding apace at University Commons, which covers five city blocks around 1000 W 15th St. The loft condos are priced from the $280s for two-bedrooms, from the $380s for three-bedrooms and from the $520s for duplexes.