Investor Buys Chicago Condos, Plans Conversion

Beal Properties, a Chicago-based private real estate investor led by principal Bill Silverstein, has acquired 445 W. Wellington Ave., a 15-story condominium building in Chicago’s Lakeview East neighborhood for $30 million. The seller was the Wellington Place Condominium Association.

The buyer plans to turn the 65-year-old building’s 117 condos back into rental apartments. All the units contain one bedroom and one bath. Common amenities include a rooftop deck, laundry room, parking, storage and a bike room.

The sale price equates to an average $256,410 per condo, which represents a roughly 50 percent premium over individual sale prices in the area, according to Interra managing partner Joe Smazal. David Goss and Jon Morgan, Interra co-founders and managing principals, along with Smazal, represented both the buyer and seller in the deal.

Condo Deconversion on a Roll

“With more than a hundred condo owners, this transaction was challenging,” Smazal said. “The deconversion trend will continue as demand for apartment buildings, especially in desirable North Side neighborhoods, keeps outpacing the available supply of buildings for investors.

“The deconversion trend still has legs, but there are headwinds—rising interest rates and slower rent growth—that should create a sense of urgency for associations which are considering a deconversion,” Smazal noted.