Sub. Condo Conversions Get Second Chances

Rockwell Partners just bought most of Huntington Condominiums in suburban Naperville.

CHICAGO— Rockwell Partners , a Chicago-based real estate investment and property management firm, recently acquired a portfolio of 313 units at the Huntington Condominiums residential complex located in west suburban Naperville. Another 43 units, or 12% of the total, were sold as condos by previous ownership after February 2007. As reported in GlobeSt.com, this is not the only recent purchase of a west suburban complex that had tried a conversion into condos, only to be derailed by the housing crisis . But the strength of the suburban rental market makes the new owners confident that infusions of capital will improve the performance and value of these properties. Rockwell Partners’ principal Jason Fishleder tells Globe St.com that the company, which concentrates on redeveloping multi-family, mixed-use and commercial properties in the Chicago metropolitan area, paid an affiliate of Inland Real Estate Group of Cos., Inc. $34 million for its portfolio, located on a 21-acre site just east of downtown. “We believe that there are plenty of improvements that can be made to the common areas,” he adds, which include a clubhouse, two pools, tennis courts and a recreational park. The company also plans to update in-unit finishes and features in the 16 other buildings, and take over the property management responsibilities for the 1970s-era complex. Rockwell currently manages about 2,500 units. In addition, “the ultimate plan is to buy back the units that were sold as condos and convert them into apartments,” he says, although that process will probably take a couple of years. “We want to help those condo buyers get out of a difficult situation.”