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Chicago

ESG Cullen inks $111M deconversion deal for Gold Coast condos

The company is looking to bring a 21-story, 391-unit tower into the rental market

1400 N. Lake Shore Drive
1400 N. Lake Shore Drive

ESG Cullen is jumping head-first into Chicago’s condo deconversion frenzy with a $111 million deal to acquire a 21-story tower in the Gold Coast.

The nine-figure price tag for the 391-unit masonry complex at 1400 North Lake Shore Drive would represent the most expensive condos-to-apartments play in the city’s history, according to Crain’s.

The 91-year-old tower was built as a hotel before being converted to private homes.

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Deconversions have become increasingly common — especially in the Gold Coast — as surging rental demand has outpaced the growth in condo values. ESG Cullen’s deal is at least the third Gold Coast deconversion to emerge in as many months.

In April, the board representing a 250-unit condo building at 1140 North Lasalle Street announced they were looking for a developer to bring the homes into the rental market, saying they were asking around $40 million for the property.

And last month, Marc Realty made a $30 million offer to convert a 68-unit condo tower into apartments at 110 East Delaware Place. [Crain’s] — Alex Nitkin

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ApartmentsCondo Deconversion