Two More Downtown Condo Deconversion Opportunities Go On The Market

540 North Lake Shore Drive, Chicago
Courtesy of CBRE
540 North Lake Shore Drive

Two vintage downtown condo buildings have been placed on the market as deconversion opportunities in a highly competitive apartment market. The condo association at 540 North Lake Shore Drive retained CBRE to market the 150-unit building to buyers. Condo owners at Flats on LaSalle at 1140 North LaSalle Drive in the Gold Coast retained Kiser Group to sell their 250 units.

Built in 1914, 540 North Lake Shore Drive was rehabbed in 1977 into a mix of 150 studio, one- and two-bedroom apartments, and converted to condos in 1992. Location is the big draw here and the building includes amenities like a sun deck with views of Lake Michigan and Navy Pier, an exercise room, a bike room and an on-site doorman.

The eight-story Flats on LaSalle was originally built in 1924 as a luxury hotel. It was later rehabbed into a mix of studio and one-bedroom units and converted into condos in 2006. The small unit sizes mean prospective investors can see better returns on the buildings as rental plays, with speed to market being another factor in construction-heavy Gold Coast and River North. Kiser Group Senior Director Michael D'Agostino said Flats on LaSalle should see heavy investor interest.

"Rarely can you find a Gold Coast apartment building with this scale for less than $200K/unit," D'Agostino said.

D'Agostino is marketing Flats on LaSalle along with Lee Kiser, Ken Naslund and Jake Parker. Martin Stern is brokering 540 North Lake Shore Drive.

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