DECONVERSION is the process of selling an entire condo property to a third party who will turn the condo units into rental apartments. 33 is well-versed in deconversion and actively works with a select group of lawyers and financial institutions who can expertly navigate the nuances of condo deconversion.
The Opportunity is NOW:
Demand for rental housing has never been greater. Economic factors and lifestyle preferences have made renting attractive to a large portion of the population. This is especially true in Chicago and its surrounding suburbs. With rising construction costs and a limited supply of land, developers simply cannot meet demand for rental housing. As a result, rents are at an all-time high and vacancies are low.
For condo owners and associations now is the time to consider converting your condos into individually rented apartment units. Motivated investors are paying above market value for condo buildings. Choosing to bulk sell to an investor positions each owner to receive the most value for their unit and having the right representation throughout this process is key.
Find out if a deconversion is right for you
While individual owners may have unique drivers for selling their unit, choosing to deconvert has numerous advantages including:
- You get more money. On average group sales receive 20-60% above residential value.
- You keep more of it. On average owners pay 15-30% less on commission and attorney fees.
- You avoid expenses. Investors will buy as-is and you avoid the cost of repairs and renovations.
- You can choose to stay in your home. Enjoy the flexibility of renting if you stay. If you choose to relocate, 33 Realty has a dedicated team of residential brokers and leasing agents who can help you find a new home.
Recent Deconversion Sales
Why choose 33?
33 Realty has handled unit sales and de-conversion transactions for buildings as small as 6 units and as large as 300 units. Most recently 33 Realty’s investment brokerage team facilitated a $18,500,000 deconversion sale of 198 condo units at Deer Creek located at 1600, 1700, and 1800 Wedgewood Drive in Gurnee, IL. Consisting of three 66-unit buildings situated on 33 acres, Deer Creek was built in 1983 and converted to condos in 2007. This is the largest condo deconversion sale in Lake County to date.
33 Realty’s investment brokerage team is a seasoned group of brokers who’ve spent decades building relationships with vetted real estate investors. Not only can 33 Realty connect you to the right buyer but we can also push for top value and flexible closing timelines. Through our marketing process, we will drive the most competitive pricing possible, help you navigate the internal association process and communicate with the condo owners along the way.
I had the opportunity to work with John and Matt at 33 Realty during our de-conversion and they made it all run smoothly! They were both very responsive to all our questions and concerns during the process from beginning to end. They went above and beyond to meet our needs making sure everyone was satisfied.Amy Montalbano, Deerfield Gardens Condominium Association, Deerfield, IL 36 Units
Sean and Mark at 33 Realty were very helpful and supportive during the condo deconversion process. They met with us multiple times, appraised our building, and answered lots of questions before we signed on with them. Working with 33 ensured we got the best value for our units and had optimal terms on the closing.Sarah Forneo – Winchester Condominium Association
We spoke to multiple brokerages about the Deconversion of Deer Creek prior to choosing 33. Ultimately, we chose them because of their team approach, experience in the field and their ability to work through complicated deals with patience and professionalism to make the entire association comfortable with the process. In the end, not only were we able to achieve a great price for the ownership, but we were able to move forward with just under 90% of the association voting in favor of the offer.Jeff Steinberg & Robert Oliver - Deer Creek Condominium Association
This will vary by location, size of unit, condition of unit, and amenities. In general, we’ve seen sellers make 15-40% more by way of condo deconversion.
No. This can vary, but in general, buyers are willing to lease back the units for short term or longer term leases to the owners. Each owner would have the option to lease back or move out at closing.
That is not a problem and your current tenant would not be affected. Any lease in place would be honored and transferred to the buyer.
Attorney fees, broker commissions, and closing costs are much cheaper than when you individually sell a condo. On average, these fees are 20-40% cheaper on a bulk sale.
The percentage of votes needed vary by association. Please review your condo declarations & bylaws for the exact vote needed. Typically, 75% is needed, however we have seen some as low as 66.67% and as high as 100%. In Chicago, 85% of unit owners must vote in favor of deconversion for the sale of the entire building to be approved.
Reserves transfer to the new buyer. That said, we have almost always negotiated with buyers to allow the condo owners to keep the reserves. Those reserves are typically used to help offset closing costs, attorney fees, or realtor commissions.