Condo Deconversions Gain Steam
Condo deconversions continue to provide investors with an opportunity to quickly capitalize on rent growth brought on by a preference of renting over buying.

When The Real Deal was looking for insights on the practice, we helped facilitate interviews with Taylor Johnson clients Joe Smazal of Interra Realty and Steven “Sonny” Ginsberg, co-founder of Chicago-based law firm Ginsberg Jacobs LLC. Smazal said the deals can be a win-win for buyers and sellers. In April, he closed a 117-unit sale in Lakeview where the condo owners realized a 60 percent premium over the average price paid recently for units in the building. The pendulum can swing the other way, however. In the Real Deal story, Ginsberg warned how units can sometimes become devalued when multiple owners want to sell at the same time, giving buyers an advantage if 75 percent of unit owners sign off on a sale as required by state law.