CLK Pulls Off State's Largest Condo Deconversion
The Chicago City Council toughened up the regulations governing condo deconversions, but out in the suburbs, interested buyers still have an easier path. New Jersey-based CLK secured, as required by state law, the support of more than 75% of the owners at Heritage Village Pointe condominium complex in Des Plaines to acquire its 154 buildings for $94M and transform them all into apartments. In Chicago, such deconversions require 85% support.
Although several Chicago deconversions have been more valuable, at 924 units, CLK's buy is the largest ever in the state, company officials said.
CLK plans to modernize and reposition the units, constructed in 1973, and bring them up to the standards of competing assets in nearby Northwest suburbs including Park Ridge, Northbrook, Glenview and Wheeling, according to Cagan’s Realty Managing Broker Mirela Dulu, who along with her colleague Heather Gallagher represented CLK in the deal.
"Investors like CLK typically pay a premium to take control of an entire development like Heritage Village Pointe,” Dulu said. “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.”
It will take CLK several years to modernize the 6-acre property, which has a significant amount of deferred maintenance, and current residents won't have to move until their buildings get rehabilitated, she said.