NY Investor Completes Record Condo Deconversion Buy on Chicago’s Lake Shore Drive
The transaction marks the highest sale price achieved for a bulk condo sale in the history of Chicago, according to CBRE, which brokered the deal. New ownership will deconvert the property back to apartments.
CHICAGO—ESG Kullen of New York City has closed on the historic condo deconversion of the 391-unit 1400 N. Lakeshore Drive complex here in a deal valued at $107 million.
The transaction marks the highest sale price achieved for a bulk condo sale in the history of Chicago, according to CBRE, which brokered the deal. New ownership will deconvert the property back to apartments.
CBRE’s Sam Haddadin and Dan Cohen represented the 1400 N. Lakeshore Drive Condo Association and association president Michael B. Arrington in the sale.
Located on Lakeshore Drive, the property is a few blocks from Oak Street Beach and within walking distance of a host of retail, dining and public transportation options.
Completed in 1927 and converted to condos in 2006, 1400 N. Lakeshore Drive offers multiple unit sizes, with 79% of the property comprised of studios and one-bedroom units, ranging between 284 square feet and 768 square feet. The remaining 21% of the property is two-bed/two-baths or three-bed/two-bath units. The building has received several capital improvements in recent years, including façade repair in 2017 and updated elevators in 2016, and offers a large rooftop deck for residents.
“This is a historic deal for the Chicago multifamily market,” says CBRE’s Haddadin. “There has never been an opportunity quite like this, and, as a result, condo owners were able to achieve a new high-water mark for condo deconversion pricing in Chicago.”
The deconversion deal closed on Nov. 22 and took about a year-and-a-half to complete, according to a report in Crain’s Chicago Business.
Back in April, ESG Kullen, acquired 189 units and the majority ownership at the Cobblestone on the Lakes fractured residential condominium property in Fort Myers, FL.
ESG Kullen, which is active in the South Florida distressed and value-add multifamily investment markets, secured $33 million from Pembrook Capital Management LLC of New York City in connection with that deal.