(To read more on the multifamily market, click here.)

CHICAGO-Multifamily operator H. A. Langer & Associates got its full $20-million asking price for 1140 N. LaSalle St., a 250-unit rental building that likely will be converted to condominiums by HEN Development. On the market for a year, the 77-year-old Near North Side asset commanded a 5% capitalization rate, reports Sperry Van Ness' Jeff Mucha.

The property's unit mix--222 studio and 28 one-bedroom units--made it a difficult marketing assignment despite a 100% occupancy rate and location. "This will be a ground-breaking conversion due to the small unit sizes," says Mucha, who represented both H. A. Langer & Associates and HEN Development. "But I believe condo buyers will accept smaller units due to the charm and location of this property as well as a very low sales price-point for the condos."

HEN Development is banking on a large number of buyers coming from within the building, Mucha adds, based on the historic high occupancy and retention rates. "The developers plan to offer current residents purchase opportunities that allow very affordable monthly payments similar to their current rent payment," he says.