Lakeview condo owners to test deconversion market with $36M offering

The condo owners will see if the deconversion market is still hot

TRD CHICAGO /
Aug.August 15, 2019 12:30 PM
The Barry Quad condo complex 

The Barry Quad condo complex in Lakeview will hit the market at $36 million

A group of Lakeview condo owners is seeking to cash in on the deconversion craze by offering up their three-building complex for $36 million.

The condo association for the complex known as Barry Quad is seeking a buyer for its 115-unit property spread over three courtyard-style, walk-up buildings in Lakeview East, according to Kiser Group, the brokerage who is listing the development. If it sold at asking price, the complex would trade for about $313,000 a unit.

With the deconversion play, the condo owners are seeking to cash in on the hot demand for rental properties in Chicago, while also avoiding the cool housing market that has been particularly cruel on condo re-sales. The owners are also betting on continued interest in local condo deconversions, after investors have spent years and hundreds of millions buying up some of the city’s biggest condo complexes.

“The primary drivers behind deconversion sales include stagnant condo resales and high demand for apartment buildings,” said Kiser Group broker Andy Friedman. “There are no signs of change in the near future.”

Kiser Group’s Friedman and Jake Parker will play up the complex’s location and status as a relatively rare listing for a large walk-up building. Many of the biggest condo deconversions in Chicago have been for high-rise multifamily buildings.

Over the last 10 years, only one Lakeview walk-up with over 100 units has sold, according to Kiser Group.

Barry Quad is comprised of three buildings in the 800 block of West Barry Street. The largest of the buildings includes 69 units, two courtyards, a swimming pool, two saunas, gym and rooftop deck. The two other buildings are on the opposite side of Barry Street.

Condo deconversions have been popular in Chicago for a number of years, and the market does not appear to be slowing down. Just this week, a group of investors made public their plans to buy out the owners of the 70-story Lake Point Tower, Chicago’s only residence east of Lake Shore Drive. The deal could cost $600 million, making it the biggest deconversion deal in Chicago’s history.

But condo deconversion deals are notoriously tricky to close. The largest deal in the city’s history was supposed to be ESG Kullen’s
bid to buy a 391-unit Gold Coast building for $112 million, but the on-again-off-again deal is back on the rocks, according to Crain’s.

New York-based ESG Kullen is also working on another Gold Coast deconversion that could go for $92 million.

Late last year, Marc Realty Capital and The Wolcott Group paid $90.5 million for the iconic River City complex in the South Loop, which is being turned into rentals. That is currently biggest deconversion deal in the city.


Related Article

arrow_forward_ios
ESG Kullen’s Eric Granowsky and 2 East Oak Street

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

Optima CEO David Hovey Sr. and COO Tara Hovey with renderings of Optima Lakeview (Credit: Optima and 44thward)

Optima rolls out plan for 246-unit rental building on Lakeview’s Treasure Island site

Brothers Jon and Julian Mickelson and 606 East Woodland Park Avenue

After buying bulk of Bronzeville condo complex, two brothers decide against deconversion

Alderman Tom Tunney (44th) and Ann Sather restaurant at 909 West Belmont Avenue (Credit: 44th Ward)

City development gatekeeper cashes in big time on personal real estate deal

ESG Kullen’s Eric Granowsky and 2 East Oak Street

Chicago Cheat Sheet: $92M Gold Coast deconversion hits roadblock…& more

Zach LaVine and 1746 West Surf Street (Credit: Getty Images)

Bulls guard Zach LaVine looks to flip Lakeview mansion

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

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

Astoria Tower and Crescent Heights’ Russell Galbut (Photo by Sonya Revell)

Crescent Heights sets deconversion for South Loop condo building

arrow_forward_ios