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$111M Gold Coast Deconversion Plan Comes Up Short
ESG Kullen’s plan to buy 1400 N. Lake Shore Dr., a 391-unit residential condominium in Chicago’s Gold Coast neighborhood failed to win enough support from unit owners. Crain’s Chicago Business reported that 74.6% of unit owners voted in favor of the $111-million deal, a tally that fell short of the 75% minimum needed under state law.
The New York City-based investment firm, whose holdings include 3,500 apartment units, intended to turn 1400 N. Lake Shore’s condos back into apartments. It would have been the largest condo deconversion deal the city has seen.
Crain’s reported that deconversion has swept through Chicago because of the strong rental housing market, in which many residential buildings in the city are worth more today as rentals. ESG Kullen’s offer would have equated to $410 per square feet, well above the $300 per square foot that some units at the property had achieved recently.
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