CBRE recently brokered the sale of 519 W. Melrose Street, a 58-unit condo property, for $14.9 million to SRE Holdings in Chicago. CBRE’s Sam Haddadin and Justin Ross represented the 519 W. Melrose Condo Association in the deconversion sale.
Known as the Metro on Melrose, the property was originally constructed in 1967 and converted to condos in 2006. The property consists of primarily one-bedroom/one-bathroom units, with an average of 519 square feet. Located in Lakeview, the property is surrounded by a plethora of dining and retail options and is only a 10-minute walk to the Belmont CTA station, which services the Red, Brown and Purple lines.
“Condo deconversions continue to be a popular trend in the Chicago market,” said Haddadin. “They are complex transactions, but in most cases, ownership is finding them to be a great option for their building if it fits the right profile.”
“Most of the owners in the building bought their units from the conversion developer in 2006. Property values plunged after the housing market collapse in 2009. Owners who wanted to move out frequently chose to become unintentional landlords rather than sell at a loss,” said Ed Hayes, the Metro on Melrose Condominium association treasurer who coordinated efforts on behalf of owners. “Although there were some challenges educating a few owners of the current market value of their property, and also some challenges dividing the building’s sale price to individual units, the deal ended up being very popular among owners. 82 percent of ownership voting in favor of the transaction in the first and only vote.”