Prolific condo deconverter Strategic Properties has picked up a 38-story tower in Streeterville that was in contract to be sold to another buyer.
The New Jersey-based investor acquired the 309-unit tower at 2 E. Oak Street for an undisclosed price, just months after original buyer ESG Kullen was slated to close on the condo, according to Crain’s. Strategic finalized the deal in March, the outlet reported.
Though it’s unclear when Strategic entered into negotiations, Crain’s reports that New York-based ESG Kullen had pushed back its scheduled closing date multiple times.
ESG Kullen had initially agreed to buy the asset in the summer for $92 million, among the largest condo deconversion deals in city history.
But large condo deconversions are expected to taper down in Chicago this year. The city passed an ordinance last year that 85 percent of condo owners had to agree to a takeover, up from the prior 75 percent. And although rental units are a better investment these days, deconversion deals are complicated and fraught with headaches.
Strategic has been among the few highly-active shoppers in recent months. Apart from its contract buy at 2 E. Oak, it recently acquired a large Streeterville apartment complex last month for an undisclosed amount (the building was listed for $160 million). Strategic has deconverted three condo buildings in Chicago, including a $44 million deal at 21 E. Chestnut St. [Crain’s] — James Kleimann