Deconversion Market ‘Still Has Legs’ in Chicago Area

GURNEE, IL—The nearly 200-unit Deer Creek Condominiums complex here has been sold for $18.5-million in a deconversion sale.

The Deer Creek Condominium Association sold the property at 1600, 1700 and 1800 Wedgewood Drive to the Laramar Group of Chicago.

The deal was reported by 33 Realty. The firm’s Sean Connelly and John Meyer represented Deer Creek Condominium Association in the transaction.

Built in 1983, the 198-unit Deer Creek features one- and two-bedroom units as well as three recently converted three-bedroom, three-bath penthouses. With heated underground parking, pool, fitness center, soccer fields and tennis courts, Deer Creek offers an amenity rich environment that homeowners today seek. It is 85% occupied.

“Deer Creek has great potential to raise rents to market levels as units become available for renovation,” added Meyer.

While deconversions seem to be falling out of favor, the executives at 33 believe the “market still has legs.”

“We feel, as do our clients, that the trend is far from over. Associations looking to de-convert continue to reach out,” Connelly notes. “Being choosey is the key to success when handling these types of assignments. We look for deals with a high probability of completion and then we employ a proprietary, step-by-step sale process that increases the likelihood of a close.”

33 Realty reports it currently has more than $160 million in transactions under contract and is now working on the luxury renovation of 182 West Lake St. in Chicago and leasing 2845 Belden also in Chicago.

The firm was recently awarded the management assignment for The Fields at 400 West Diversey in Chicago and Upshore, a 149-unit midrise located at 4555 North Sheridan Rd. in Chicago.