A North Side apartment landlord has paid $30 million to take over a Lakeview condominium building and turn it back into rental housing.
An affiliate of Beal Properties acquired the 117-unit building at 445 W. Wellington Ave., another in a growing list of Chicago condo buildings to convert to apartments. Built as a rental property in 1953, the building was converted to condos in the late 1970s and now is returning back to its original state.
Condo deconversions, as they are called, make sense these days because apartment values have soared over the past several years, and many condo buildings now are worth more as rentals.
They’re complicated deals—getting dozens of condo owners to agree on a price and other terms is a major challenge—but they are becoming increasingly common as investors, brokers and lawyers figure out how to pull them off, said Joe Smazal, managing director at Interra Realty, the Chicago brokerage that arranged the Wellington sale. A few years ago, many investors worried that they would waste a bunch of time and money chasing deals that would end in frustration.