New Ordinance Could Raise the Bar for Deconversion Deals

With the condominium deconversion trend across Chicago showing little evidence of waning, investors who buy up residential condos in bulk may soon need to clear a higher bar. The City Council’s housing committee approved an ordinance that would increase the size of the majority needed to authorize the sale of all of a condo’s properties from 75% to 85%.

North Side Ald. Brendan Reilly, whose ward has seen a number of deconversion sales, introduced the ordinance in July. It’s slated for a vote at the Sept. 18 meeting of the full City Council.

Over the past five years, a few dozen Chicago condo associations have voted on bulk sales, in buildings that ranged from fewer than 20 units to several hundred. Attorney David Sugar, a Saul Ewing Arnstein & Lehr Chicago partner, told Crain’s Chicago Business that the increased majority would almost certainly slow the spread of bulk sales.

Pictured: The 449-unit River City, which represented the largest deconversion sale in Chicago history.

Connect Chicago Fall 2019 will take place Oct. 29 in Chicago. For more information, or to register, click here.

Subscribe to Connect Daily Chicago

For comments, questions or concerns, please contact Paul Bubny