Interra Brokers $30M Condo Deconversion Sale in Chicago
CHICAGO — Interra Realty has brokered the $30 million deconversion sale of a 15-story condominium building in Chicago’s Lakeview East neighborhood. The property is located at 445 W. Wellington Ave. The buyer, Beal Properties, plans to turn the 65-year-old building’s 117 condos into rental apartments. All 117 units contain one bedroom and one bath. David Goss, Jon Morgan and Joe Smazal represented both the buyer and the seller, Wellington Place Condominium Association. Under the Condominium Property Act in Illinois, condo unit owners can elect to sell a condo property if 75 percent or more are in agreement. Sellers then have the option to either move out or lease back the unit from the new owner.
“The deconversion trend will continue as demand for apartment buildings, especially in desirable North Side neighborhoods, keeps outpacing the available supply of buildings for investors,” says Smazal. “The deconversion trend still has legs, but there are headwinds (rising interest rates and slower rent growth) that should create a sense of urgency for associations which are considering a deconversion.”