Chicago & Midwest CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
Gold Coast Condo Conversion Hits the Sales Market as Rental Property
ESG Kullen has hired JLL to sell The Deco, a 389-unit apartment high-rise at 1400 N. Lake Shore Dr. built in 1929 and formerly a condominium tower, reported Crain’s Chicago Business. In a difficult transaction that seemed on the verge of collapse multiple times, a group led by ESG took over the building in late 2019, buying out the condos for $107 million, the most ever paid in a condos-to-apartments deal in Chicago.
It’s unclear what the 21-story tower would fetch in a sale, but rising interest rates and economic uncertainty could limit what investors are willing to pay for the property, Crain’s reported.
A sale would provide an important data point for investors that specialize in condo deconversions, as they’re known. The deals became popular several years ago as a form of housing arbitrage, allowing investors to profit from the growing pricing gap between condos and apartments, which were rising in value at the time.
- ◦Sale/Acquisition
