New Jersey-based CLK, LLC has acquired the 154-building, 924-unit Heritage Village Pointe condominium complex in Des Plaines, Illinois and will orchestrate the largest condominium deconversion program in the state of Illinois. Cagan’s Realty, an affiliate of Cagan Property Management, represented CLK in the transaction and worked closely and diligently with the condo association and individual owners to secure the $94 million transaction.
Cagan’s managing broker, Mirela Dulu, and real estate broker, Heather Gallagher, facilitated the acquisition. According to Dulu, CLK’s long-term plans are to complete a comprehensive, multi-million-dollar modernization and repositioning of the asset to make it competitive in a market that serves the Northwest suburbs including Des Plaines, Park Ridge, Northbrook, Glenview and Wheeling.
“Investors like CLK typically pay a premium to take control of an entire development like Heritage Village Pointe,” said Dulu. “Given the property’s location in the local marketplace and the lack of new development opportunities, this represents a great opportunity for CLK to further increase its growing portfolio.”
The property, which sits on six acres and was originally developed in 1973, will be renovated according to a staged, multi-year redevelopment schedule that will modernize the individual units and common areas for future rental residents. Current residents will be able to stay in their units until their buildings come up for rehabilitation. Dulu expects an organized, orderly and transparent process.
The process of facilitating a condominium deconversion can be a long, arduous process as a purchaser and its representatives must work to secure sale commitments from at least 75 percent of unit owners. It took Dulu and Gallagher months to assemble the owners of 702 of the units to vote to accept CLK’s offer.
According to Dulu, investors and unit owners were motivated in part by the above-market purchase price offer per condominium as well as the prospect of expensive monthly assessments that would be required for deferred maintenance at the property.
New York-based investment firm CLK Properties entered the Chicago market in 2014 and since that time has acquired over 2,000 units plus an additional 304,000 square feet of prime retail and office space.