“Many homeowners' associations are realizing that a significant value premium can be achieved through a deconversion sale,” says James Hanson, an Avison Young principal in the firm's Chicago office.
CHICAGO—The tremendous demand for rental units in many Chicago neighborhoods has led an increasing number of condominium owners to sell their buildings to apartment developers. Over the past 24 months, ending July 15, there have been more than 20 so-called “deconversions” announced in Chicago, according to a new report from Avison Young's Chicago office. These include buildings ranging from fewer than 10 units to over 300 units, mostly in hot rental markets such as Old Town, Lincoln Park, and the Gold Coast. These properties are generally older buildings constructed from the 1960s through the 1980s.
“There is considerable demand for rental housing in Chicago and across the country,” says James Hanson, an Avison Young principal in the firm's Chicago office. “Many homeowners' associations are realizing that a significant value premium can be achieved through a deconversion sale versus the sale of an individual unit as a condominium. The whole is worth much more than the sum of its parts.”
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
