Sunday, September 2, 2018

Buena Park Condo Building The Latest Deconversion From Condos To Apartments

A 34-unit condo building in Buena Park is the latest Uptown residence to undergo deconversion, the process in which a single developer buys all or most of the units in a building and converts them into rentals.

The building at 744 West Gordon Terrace is four stories tall, and was bought in August for $8.2 million. The units are a mix of studios, one-bedrooms, and two-bedrooms. It was built in 1974. The deal broker, Interra Realty, says that all the condos have in-unit washer/dryers, and the building has private outdoor space and a heated underground parking garage.

Deconversions are happening all over the city in areas where there is a demand for rentals. One market analyst estimates that there have been 2,000 units converted since late 2016, at an estimated price of $437million. A quick Google search shows deconversion sales in Evanston, Rogers Park, Albany Park, Edgewater, Old Town, Lakeview, Lincoln Park, and the Gold Coast.

In Uptown, there have been more than a few, including 921 West Sunnyside, 4630 North Beacon, and 732 West Bittersweet. According to Joe Smazal, managing partner of Interra, deconversions make sense because "the creative deal structure allows investors to acquire a large number of units in areas of high rental demand with a limited supply of available apartments. A bulk deconversion sale also offers condo owners a premium sale price above what they could achieve by selling their units individually."

According to Interra, the unit owners at 744 Gordon Terrace sold their units for prices approximately 50% higher than they would have gotten if they had sold them individually.

1 comment:

  1. I can remember a time long ago, when all the rentals were being kicked out and paid off so that buildings could go condo. What a difference time makes.