A Chicago based real-estate investor has acquired a 58-unit condominium building in Lakeview in a deal that defines the importance of timing is everything. The deal was made possible due to owners of the building approving the sale just 16 days before the city established an ordinance making such “condo de-conversions” much more difficult to approve.
A new ordinance which requires owners of 85% of a condo building owners now must approve a bulk sale of the property to a single investor, raising the requirement from 75% previously. Condominium de-conversions have spawned controversy and battles within condo buildings around Chicago, with some owners eager to cash out, while other owners being unwilling to sell for various reasons.
The property was built in 1967 and operated as a rental property until another developer converted it to condos around 2006 during a peak in the condo market. In 2018 after a period known as the “condo bust” and apartment rent values sky-rocketing, an investor approached the board with an offer. After a period of analysis, the board hired CBRE to market the property for a de-conversion.
Sam Haddadin and Justin Ross of CBRE brokered the sale, which closed in late January. The Lakeview deal was SRE’s first condo de-conversion but more could be on the way as Chicago's rental market stays hot.