Condo Deconversions a Growing Trend

This deconversion from condos to rentals reflects a growing trend in Chicago’s multi-family market.

CHICAGO—Avison Young has completed the sale of Kennelly Square, a 268-unit condominium building located in the Old Town neighborhood of Chicago. The buyer, Strategic Properties of North America, plans to convert the units into rental apartments. This strategy reflects a growing trend in Chicago’s multi-family market as investors and developers identify opportunities to meet strong demand for rental units. The purchase price was $78 million.

James Hanson and Richard Hanson, both Avison Young principals, along with Paul Cohen, senior vice president, all represented the Kennelly Square Condominium Association in the sale of the building. The Chicago-based team also oversaw all due diligence activities and worked with the homeowners’ association in the months-long process of presenting the offer to unit owners and securing approval for the sale pursuant to Section 15 of the Illinois Condominium Property Act.