Condo deconversion craze continues with 2 new deals in the works in Gold Coast

Developers ESG Kullen and Strategic Properties could spent $150M turning two condo buildings back into apartments

TRD CHICAGO /
Jun.June 26, 2019 09:00 AM
From left: 1250 North LaSalle, ESG Kullen President Eric Granowsky and 2 East Oak

From left: 1250 North LaSalle, ESG Kullen President Eric Granowsky and 2 East Oak

The condo deconversion craze continues in Chicago, with developers looking to spend a total of more than $150 million turning two Gold Coast condo buildings into rentals.

New Jersey-based Strategic Properties of North America has a deal to pay $60 million for a 202-unit condo building at 1250 North LaSalle Drive, according to Crain’s. New York-based ESG Kullen, meanwhile, is offering to pay $92 million for 309 condos at 2 East Oak Street.

Illinois law requires at least 75 percent of building ownership to approve a deconversion. Owners at 1250 North LaSalle already approved the sale, and the deal is expected to close next month, according to Crain’s. The results of a vote to sell 2 East Oak will be released this week.

The proposals show the condo deconversion trend is not abating, as the demand for rental units continues to surge alongside climbing rents.

ESG Kullen has been active on the deconversion front, paying $112 million for a 391-unit building on North Lake Shore Drive in what is the priciest such deal in city history. The firm also recently paid $38 million for 250 condo units at 1140 North LaSalle Drive.

Earlier this year, Strategic Properties landed a $33 million refinancing of a former Lincoln Park condo building it deconverted in 2016. [Crain’s] — Joe Ward


Related Articles

arrow_forward_ios
10 E. Ontario Street tower, whose condo owners rejected a buyout bid by Strategic Properties of North America (Google Maps)

These River North condo owners couldn’t be deconverted

These River North condo owners couldn’t be deconverted
A photo illustration of 2 E. Oak Street and ESG Kullen’s Eric Granowsky (Credit: Google Maps, iStock)

May I cut in? New buyer claims 2 E. Oak condo deconversion deal

May I cut in? New buyer claims 2 E. Oak condo deconversion deal
Co-founder, President and CEO of CLK Properties Craig Koenigsberg, Heritage Village Pointe in Des Plaines (Credit: Google Maps)

CLK Properties closes on massive condo deconversion in Des Plaines

CLK Properties closes on massive condo deconversion in Des Plaines
628 Harrison Street and 922 North Boulevard in Oak Park (Credit: Google Maps, Realtor.com)

Two condo deconversions close in Oak Park

Two condo deconversions close in Oak Park
1400 North Lake Shore Drive & ESG Kullen’s Eric Granowsky (Credit: Google Maps)

ESG Kullen lands big loan on priciest Chicago condo deconversion

ESG Kullen lands big loan on priciest Chicago condo deconversion
Marc Jacobs store at 11 E. Walton St., Marc Jacobs (Credit: Getty Images and Google Maps)

Another one bites the dust: Marc Jacobs closes Gold Coast location

Another one bites the dust: Marc Jacobs closes Gold Coast location
2 East Oak

Gold Coast condo deconversion blocked by furious condo owners

Gold Coast condo deconversion blocked by furious condo owners
Interactive Map: Tracking every Chicago condo deconversion deal

Interactive Map: Tracking every Chicago condo deconversion deal

Interactive Map: Tracking every Chicago condo deconversion deal
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...