Largest Condo Deconversion in Illinois Goes to NY Investment Firm
CLK, LLC acquired the complex for $94 million, according to Cagan’s Realty, Inc., an affiliate of Cagan Property Management Inc. of Skokie, IL, which represented CLK in the transaction.
SKOKIE, IL—CLK Properties, which is headquartered in Woodbury, NY, has purchased the 154-building, 924-unit Heritage Village condominium complex here in what is believed to be the largest condominium deconversion program in the State of Illinois.
CLK, LLC acquired the complex for $94 million, according to Cagan’s Realty, Inc., an affiliate of Cagan Property Management Inc. of Skokie, IL, which represented CLK in the transaction.
The brokerage firm also worked closely with the condominium association and individual condominium owners to achieve the 75+% vote (702 votes) required by the State of Illinois to secure the transaction. Cagan’s managing broker Mirela Dulu and real estate broker Heather Gallagher facilitated the acquisition.
The property sits on six acres and was originally developed in 1973. Cagan Realty’s Dulu says the complex will be renovated in a staged, multi-year redevelopment that will modernize the individual units and common areas. Current residents will be able to stay in their units until their buildings come up for rehabilitation. Dulu expects an organized, orderly and transparent deconversion process.
The rehabilitation and repositioning program will be geared to making Heritage Village more competitive with properties in 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,” says 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.”
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 have been 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 more than 2,000 units plus an additional 304,000 SF of prime retail and office space.
Last October, CLK Properties reported it had acquired 5101-5115 Sheridan Rd. in Chicago. The deal involved three adjacent buildings, totaling 216 units situated one block from Lake Michigan, on Sheridan Rd and Foster Ave.