Strategic Properties of North America's $74M bid to deconvert Kennelly Square condominiums into apartments is the highest-priced deconversion deal in Chicago, but it may not hold the top spot for long. New York-based investor ESG Kullen has a $111M offer for 1400 North Lake Shore Drive, Crain's Chicago Business reports. Condo owners in the building are voting on the offer. If they accept, it will easily be the highest price ever paid for a condos-to-apartments deconversion.
The 21-story, 391-unit building was a rental property until RDM Development paid $65M for it in 2006. RDM spent an extra $31M on renovations and converting the apartments to condos, but gave up the unsold units in a deed in lieu of foreclosure in 2010.
The building's condo board hired CBRE to sell the property last year, as the condo deconversion trend was on the cusp of exploding.
The lakefront has emerged as a market for condo deconversions. The condo board at 540 North Lake Shore Drive retained CBRE to market that building to sellers in April. Condo owners at Flats on LaSalle in River North hired Kiser Group to find a buyer.
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