There are many “accidental landlords” out there. These proud owners of a condominium rental unit continue to deal with leasing and tenant management, condominium board politics, and special assessment responsibilities. We feel your pain.
A condominium deconversion sale strategy provides a graceful opportunity for all unit owners to sell, with expense savings and often at market premium pricing. As if expense savings and a higher market value were not reasons enough to pursue a condominium deconversion, this sale strategy also eliminates any barriers of unit sale associated with a non-warrantable condominium building.
Condominium deconversions continue to trend in the Chicago multifamily investment market. When an entire building of individual condominiums is sold at one time, significant closing cost savings are realized. A single team of professional real estate brokers (like us), attorneys, and other third party service providers provides savings through economies of scale when compared to the hiring of individual teams for individual condominium unit sales. Additionally, current multi-family apartment investors look favorably upon new supply with low construction risk in constrained markets, like Chicago. The competitive interest in this asset class is pushing value as apartment above value as condominium in many cases.
A deconversion strategy is not without its challenges, but the process obstacles are not insurmountable with the right team. It is important to note that though the condominium board has a fiduciary duty to unit owners, unit owners themselves can call a meeting regarding this opportunity. A meeting to conduct business by the unit owners can usually be called by a majority of the board members, or by a set percentage of unit owners. If you are a condominium unit owner who is interested in hearing more about this opportunity, please contact us today, we would be happy to discuss this sale strategy in more detail.