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Repairs To Be Addressed After Historic $27 Million Deconversion Sale Of Edgewater High Rise

The sale of an Edgewater condo High Rise this past September made history as it adds to a list of high-profile deconversions by investors wanting to increase their apartment portfolio. The new owners are expected to address the necessary repairs that helped lead to the sale.

Deconversions of condo complexes into apartment building are a growing trend in Chicago and across the nation. Edgewater’s 12-story, 188-unit condo high rise 5815 N. Sheridan will join the list of historic buys in 2018 by companies looking to add the number of rental units they offer as the demand increases. It was sold to Brooklyn-based Greenstone Property Group for $27.2 million.

Other recent purchases in Chicago helped top last year as the highest grossing transactions of decoversions ever in the city. They include the sale of a 268-unit high rise for $78 million by New Jersey-based Strategic Properties of North America and the 292-unit high rise for $60 million at 182 W. Lake Street by Golub & Company.

The owners of 5815 N. Sheridan were looking for an option because they had issues selling their individual units due to a staggering $3 to $4 million in capital that was needed to make crucial repairs. Many of the unit owners felt that there was no other option because they would not be able to afford such a large special assessment. The building, which is primarily one-bedrooms, is only about half owner-occupied and the rest rentals.

In a meeting last summer, 80 percent of the owners chose to accept the purchase offer by Greenstone Property Group, 13 percent voted against while the rest did not cast a vote. According to Illinois law, at least 75% of the owners must be in agreement for the process to begin.

 

 


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