CLK Properties closes on massive condo deconversion in Des Plaines

The investment firm paid $94M for the 924-unit suburban complex

Feb.February 11, 2020 11:47 AM
Co-founder, President and CEO of CLK Properties Craig Koenigsberg, Heritage Village Pointe in Des Plaines (Credit: Google Maps)

Co-founder, President and CEO of CLK Properties Craig Koenigsberg, Heritage Village Pointe in Des Plaines (Credit: Google Maps)

CLK Properties has closed on the latest condo deconversion deal in the Chicago area, this one at a massive suburban complex in Des Plaines.

The investment firm paid $94 million for the 924-unit Heritage Village Pointe, according to Crain’s. The deal works out to $102,000 per unit, about twice what condo owners had been getting for each unit in recent sales, according to the report. It marks the largest deconversion, by unit count, in the Chicago area. Heritage Village was built in the 1970s and is comprised of 154 buildings, with six units per building.

CLK entered the Chicago market about five years ago and now owns over 2,000 apartments in the area. The New York-based company acquired four residential buildings in 2018 for $36 million near Northwestern University.

The condo deconversion wave in recent years took advantage of the booming local rental market.

In Chicago, the pace has slowed considerably, particularly after city officials in the fall upped its condo deconversion requirement to 85 percent of owners needed to approve a bulk sale. The statewide threshold is 75 percent.

Still, deconversions have not dried up altogether. Last month, two Oak Park condo buildings sold for a combined $12.4 million.

ESG Kullen also recently closed on the priciest condo deconversion in Chicago history, paying $107 million for a 391-unit Gold Coast building. [Crain’s]Jacqueline Flynn

Related Articles

Mayor Lori Lightfoot (Credit: Getty Images)

Chicagoans flee to their second homes

854 W. Webster Ave. (Credit: Redfin)

Here are the priciest resi sales in Chicago this week

From left: Lendlease CEO Steve McCann, and Magellan CEO David Carlins, with a rendering of the Cirrus and Cascade projects (Credit: Lendlease/Magellan/bKL Architecture via Curbed)

Lendlease, Magellan land $283M in construction financing for resi towers project

(Credit: iStock)

Chicago is No. 3 city for single women to buy a home: study

924 N. Clark Street and owner of the mansion, Rishi Shah

Revealed: What accused fraudster Rishi Shah paid for one of Chicago’s grandest mansions

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

EquityBuild's Shaun and Jerome Cohen and one of the corporation's properties at 7549-7559 South Essex Avenue (Credit: Google Maps)  

Ponzi scheme fallout: South Side has thousands of distressed apartments

Chairman and CEO of Taylor Morrison Sheryl Palmer and Townhouses at Riverbank Crossing in Geneva

With Chicago area home sales down, homebuilder Taylor Morrison is out