“Along with condo deconversion opportunities, bulk condo sales are also desirable investment options for both larger institutional buyers and local investors,” Zaring said. “We should continue to see more transactions of this type come to market, with the size of the deals varying from middle-market to large-scale.’
The Chicago Gold Coast property is only blocks away from the city’s Magnificent Mile, and features 250 micro studios and one-bedroom units. Arthur Hill bought the property five years ago in 2011 for $4.5 million, roughly doubling its return with the sale.
“Investors are looking for value-add deals with strong upside potential and purchasing condo properties is one place where they can find it,” Ross said. “This deal is a perfect example of that. Investors want to buy a property that they can renovate and reposition, and we are seeing assets come to market across all sizes that are allowing them the option.”