On again, off again Gold Coast condo deconversion is back on again

New York-based ESG Kullen finally won approval for its $92M plan to convert 2 East Oak back to rentals

Jul.July 18, 2019 03:00 PM
ESG Kullen’s Eric Granowsky and 2 East Oak Street

ESG Kullen’s Eric Granowsky and 2 East Oak Street

ESG Kullen is cleared to close its latest Gold Coast condo deconversion after running into a roadblock last month.

Condo owners at 2 East Oak Street voted to accept the New York firm’s $92 million offer buy all 309 units in the building with plans to convert them back into rentals, according to Crain’s.

Illinois law requires at least 75 percent of building ownership to vote in favor of a bulk sale in order for the deal to go through.

Only 68.6 percent of ownership at 2 East Oak approved of the plan in the first round of voting, but the condo board decided in late June to keep counting ballots for another three weeks since 12 percent of owners hadn’t voted. The board this week released a final tally showing 76.1 percent of owners in favor and 18 percent against.

Deconversions have been growing in popularity in recent years from investors seeking to get a bigger piece of Chicago’s hot rental market.

ESG 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 condos at 1140 North LaSalle Drive.

[Crain’s]John O’Brien

Related Articles

Wolf Point East at 313 W. Wolf Point Plaza and Nema Chicago at 1210 South Indiana Avenue (Credit: Hines, Nema Chicago)

Over 10K new apartments could flood Downtown Chicago by 2022. But there’s a catch

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

Landing CEO & founder Bill Smith and one of Landing's apartments at 30 E. Adams St.

Membership-based leasing platform Landing uses $20M Series A round to expand to Chicago

7250 S. Shore Drive and 6752 S. Michigan Avenue

Financially-distressed housing nonprofit selling 13 South Side properties

628 Harrison Street and 922 North Boulevard in Oak Park (Credit: Google Maps, Realtor.com)

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

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

Developer Sam Goldman and an original rendering of the apartment building at 7000 N. Glenwood Ave. 

To avoid rezoning battle, developer cuts Heartland Cafe redevelopment plans in half