The go-go days of condo deconversions in Chicago may be coming to an end, and Seminary Properties and Management may have closed a deal just in time.
The firm acquired a 32-unit condominium in Edgewater, paying the condo association $5.1 million for the right to convert all of the units to rentals. Monarch Realty Partners’ Bill Baumann and Brian Semel co-brokered the sale.
The property at 5653 N. Magnolia Avenue was built in 1925, and was only 75 percent owner-occupied, with many owners opting to rent out their units.
The condo owners that comprised the Association at Magnolia Court agreed to sell their shares. Seminary Properties did not previously own any units in the building
The sale comes in just under the wire. The current city law says that 75 percent of condo owners in a building must agree to a bulk sale in order for the building to change over. An ordinance to increase that to 85 percent goes before the full City Council on Wednesday. Last week, the committee on housing and real estate unanimously approved the increased amount.
Deconversions have become a popular Chicago investment as the rental apartment market took off and continues to soar downtown. Last year, Monarch Realty also advised on another Edgewater deconversion deal, that one an 80-unit building that sold for $13.4 million also brokered the deal.