Chicago Condo Owners: Are you being faced with the possibility of condominium deconversion?
As many of you likely know, there is a growing trend in the Chicago real estate market to deconvert condominium buildings into apartment buildings. The demand for renting apartments in Chicago is rising so, in return, many real estate developers are looking to cash in on this demand by converting previously owned condominium buildings into rental properties. In fact, selling an entire building may result in a higher price for each condo owner.
Many developers are willing to pay a premium over the current market prices to secure an entire condo building because rental apartments are worth more than condos in today’s Chicago real estate market. In instances where condo owners do not want to sell or move locations, developers are oftentimes willing to lease back the units to the original owner if that owner is interested in remaining in and renting their unit after closing.
If you are faced with this decision, note that in Illinois a certain percentage of votes by the condo owners is needed to force a sale of an entire building. Typically, 75 percent of the unit owners are needed to bind all of the condo owners to a building sale. The remaining 25 percent of the unit owners who voted against the deconversion are then forced to sell their condos. The 75 percent minimum is established by the Illinois Condominium Property Act (765 ILCS 605/) and may vary depending on your condo association bylaws. Therefore, if you are worried about the sale of your condo building or simply want to know more about the process, please reach out to your condo association members and ask for a copy of the condo declarations and bylaws.
If you are looking for the statutory language of the Illinois Condominium Property Act, I have attached a link for your reference.
Ald. Pat O’Connor