Looks like the biggest deconversion in Chicago history will actually go through

ESG Kullen reportedly landed equity and debt financing for 1400 North Lake Shore Drive

Jan.January 30, 2019 04:30 PM

1400 North Lake Shore Drive and ESG Kullen’s Eric Granowsky (Credit: Gold Coast Realty and Multifamily Forum)

ESG Kullen’s planned historic deconversion of a Gold Coast condo building is back on after the firm secured financing for the deal.

The New York-based investor pulled out of the deal last month when it couldn’t get financial backing for it, but now has lined up equity and debt financing, according to Crain’s.

The acquisition of the 391-unit building at 1400 North Lake Shore Drive and conversion back into apartments would break the record for most expensive condo deconversion set just last month when Marc Realty Capital and the Wolcott Group closed on a $90.5 million deal for the 449-unit River City complex in the South Loop.

ESG failed in its first attempt last year to get the required share of ownership to agree to the bulk sale of their condos. It won approval weeks later, only to pull out of the deal five months later. Building owners this week held another vote on a slightly higher offer from ESG, with 92 percent approving it, according to Crain’s.

In addition to the 1400 North Lake Shore Drive deal, ESG bought another Near North Side condo building with plans to convert the complex back into rentals. The firm paid $38 million for the 250-unit Flats on LaSalle building at 1140 North LaSalle Drive. [Crain’s] John O’Brien

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