CBRE has completed the condo deconversion sale of Shore Manor, a 90-unit condo property at 5858 N. Sheridan in Chicago. Becovic Management Group, LLC, a Chicago owner operator who is currently heavily invested in the neighborhood, picked up the Edgewater asset for $13.3 million.
CBRE’s Sam Haddadin and Justin Ross represented the 5858 N. Sheridan Condo Association in the sale.
“The opportunity to help condo associations like Shore Manor continues to exist,” said Haddadin. “Older buildings facing capital projects present a great opportunity for condo owners to get well above market value for their condos in a deconversion sale.”
Built in 1955 and converted to condos in 1977, the 12-story multifamily tower offers a mix of studio and one-bedroom units, with an average of 576 square feet per unit. The property offers opportunities for amenity upgrades, with two ground floor units that could be potentially converted into a fitness studio or club room.
Located in Chicago’s Edgewater neighborhood, the property allows for immediate access to Lake Michigan and public transportation. In 2018, CBRE sold the neighboring 188-unit 5815 N. Sheridan as a condo deconversion.
“This area of Chicago is ideal for condo deconversion opportunities,” said Ross. “It is a very popular area for its quality of life, but there are no real development sites available. A lot of the residential product is now dated and have become ripe opportunities for multifamily developers to reinvest in them and convert to rental apartments.”
This is Becovic Management’s third North Side multifamily deal in the past two years. The company purchased a 74-unit property in Uptown in 2018 and acquired an 11-building Rogers Park portfolio last September for $28.5 million.