Owners at a Gold Coast condominium tower narrowly rejected a $111M deconversion offer from a New York-based investor, Crain's Chicago Business reports. Had the owners of 1400 North Lake Shore Drive approved ESG Kullen's offer, it would have been the most expensive condo deconversion deal in Chicago.

Under Illinois law, 75% of condo owners in a building need to approve a deconversion offer. The vote at 1400 North Lake Shore fell just short — 74.6% of owners voted in favor of the deal.

While deconversions have become popular with investors seeking yields in the city's hot apartment rental market, they are harder to pull off in larger buildings like 1400 North Lake Shore, which contains 391 units. Marc Realty Residential has spent the past couple of years looking to deconvert River City, and reduced its offer from $100M to $89M in June. River City has 448 condos.

Deconversion votes also sow discord between owners who want to sell and others who say no amount of money would replace their neighborhood.

ESG Kullen sweetened its offer to $113M in the weeks leading up to the vote. It is unknown if the firm will raise its bid.

See Also: Lincoln Park Condo Association Narrowly Votes In Favor Of Deconversion