CBRE recently completed two condo deconversion sales in Chicago for a total of $9.2 million. In both transactions, Sam Haddadin and Justin Ross of CBRE represented the condo associations in the sale. The buyers of each property will deconvert the condo units and reposition them as rental properties.
In the first transaction, 4715 N. Malden Street, a 28-unit property in the Uptown neighborhood, sold for $4.8 million. Originally constructed in 1926, the vintage property is one block from the intersection of the Broadway and Lawrence Avenues intersection. The four-story property offers 20 one-bed, one-bathroom units and eight two-bedroom, one-bathroom units. It offers direct access to the Broadway commercial corridor and CTA transportation at the Wilson Red Line stop.
In the second transaction, 663 W. Melrose Street, an 18-unit property in the Lakeview neighborhood, sold for $4.4 million. The building was constructed as apartments in 1974 and converted to condos in 1981. It offers 15 one-bed, one-bathroom units and three two-bedroom, two-bath units. It is located less than a mile from the lakefront walking path at Lake Michigan and within easy walking distance of both Red Line and Brown Line CTA stops.
“These are both excellent value-add opportunities and the new owners will be able to upgrade units and add community amenities that will be a big draw for renters,” said Ross, first vice president with CBRE. “The rental market is still incredibly strong and in very popular markets on the north side we will continue to see investors target vintage properties for deconversion opportunities.”
“At the same time, owners are finding these transactions very appealing, as they typically result in above-market-rate prices for their units,” said Haddadin, vice president at CBRE.