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CHICAGO-It's no secret condominium converters have been driving up prices of multifamily rental properties. However, one brokerage firm has quantified the premium converters are willing to pay.

"Almost 5,000 units were sold for conversion in 2005, the majority of which were in the Near North Side and Loop areas," Marcus & Millichap Real Estate Brokerage in a recent report. "Prices for conversions in these areas are currently more than $175,000 per unit, trading at a 43% premium over non-conversion assets."

The median price per unit jumped 17% last year to $82,000, according to the report co-authored by national research manager Erica Linn and national client services manager James H. Holt. In addition to converters, institutional buyers were increasingly active in the market in 2005, they add.