1 North Chestnut Avenue and Interra’s Patrick Kennelly (Interra, Redfin, Getty)
Arlington Heights is dropping extra owner-occupied condos to buyers who’ve turned them into leases.
For the second time in a month, a apartment constructing went via a so-called deconversion sale for $9.7 million as a purchaser made a proposal bulk buy accepted by unit house owners holding not less than 75 p.c of the property’s full worth, the Daily Herald reported.
Interra Realty’s Patrick Kennelly and Paul Waterloo brokered the deal for the 40-unit apartment constructing at 1 North Chestnut Avenue. They represented each the customer, who hasn’t but been recognized, and the property’s apartment affiliation within the negotiations.
The deal comes out to about $242,500 per unit, which, in accordance with an announcement from the brokerage that cited CoStar information, makes it the second-priciest sale value per unit of an Arlington Heights constructing up to now 5 years.
Interra additionally negotiated one other apartment deconversion sale within the village final month when the 34-unit constructing at 202-222 North Salem Avenue bought for $4.1 million, as a sluggish apartment market stretches into a brand new yr within the Chicago space whereas buildings structured as conventional residences maintain extra worth because of surging space rents than the collective worth of the identical items as condos.
The Chestnut complicated has 21 one-bedroom residences and 19 two-bedroom items. The customer plans to renovate the property and replace the residences.
Kennelly expects extra apartment deconversions to happen in suburbs comparable to Arlington Heights, which he stated has gained attract with buyers partially as a result of Chicago Bears plans to redevelop the shuttered Arlington Worldwide Racetrack into a brand new stadium and leisure district to the tune of $5 billion. The NFL group is underneath contract to the property for $197 million from Churchill Downs.
The Chestnut constructing can also be positioned throughout the road from the proposed $150 million Arlington 425 campus with industrial and residential area.
That mission’s developer, Bruce Adreani of Norwood Builders, slashed the variety of residences from 361 to 319 in addition to the quantity of business workplace area from 43,800 sq. ft to 7,900 final yr whereas struggling to get the constructing financed, in accordance with earlier experiences. Although Arlington 425 would nonetheless be the second-largest mission within the suburb in a long time, after the Bears mission ought to it go ahead.
— Victoria Pruitt
