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Reasons Why Condo Deconversion Could Make Sense for You
September 20, 2022

Reasons Why Condo Deconversion Could Make Sense for You

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Reasons Why Condo Deconversion Could Make Sense for You
Why Condo Deconversion Could Make Sense for You?

Are you a condo owner considering your next move? Are you on the board of your HOA and considering selling? In the past year or so, as the demand for rental units has increased, a new phenomenon has emerged – “condo deconversions.” This is when all of the condominium units in a building are converted to apartments. Now, I bet you’re wondering how does this work? The deconversion process is initiated when a buyer makes an offer to purchase all of the units in the association. The buyer then converts the property into apartments.


  • You make more money – Eliminate the hassle with listing your home (sellers make 20-50% above residential value)
  • Cheaper fees – Cheaper Commission and Attorney Fees (15-30% less fees due to bulk sale)
  • Option to rent unit – You don’t have to move (and process takes six months for you to decide your next move)

Multifamily is a hot sector of Chicago commercial real estate. Due to a number of factors a large portion of the population are remaining renters for longer. Rents are at an all-time high, vacancies are low, and interest rates remain at historically low levels. Building owners are aware and refinance/hold their properties or are demanding premiums. This combination is fueling investors/lenders to actively pursue alternatives to the traditional purchase of apartment buildings. Further proof is the glut of city-wide new construction apartment projects. Net, net, not all investors are developers (and want to avoid this risk), this is how the idea of bulk condo acquisitions came about.

Investors do not look at a bulk condo acquisition the same way a residential buyer would look at a condo purchase. For the investor, the analysis is based on a cash flow model, not on a comparative analysis on the individual condos. They look at the potential cash flow of the property and apply their expenses to determine value. The value of the property as a whole often outweighs the value of the individual condos therefore demanding premiums above residential pricing.


This is the time to be considering this option. Looking to find out more about condo deconversions? Contact: 773-327-4975 or by email at [email protected].

Written by:
Mary Gibala
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