September 13, 2019
With the condominium deconversion trend across Chicago showing little evidence of waning, investors who buy up residential condos in bulk may soon need to clear a higher bar. The City Council’s housing committee approved an ordinance that would increase the size of the majority needed to authorize the sale of all of a condo’s properties from 75% to 85%.
North Side Ald. Brendan Reilly, whose ward has seen a number of deconversion sales, introduced the ordinance in July. It’s slated for a vote at the Sept. 18 meeting of the full City Council.
Over the past five years, a few dozen Chicago condo associations have voted on bulk sales, in buildings that ranged from fewer than 20 units to several hundred. Attorney David Sugar, a Saul Ewing Arnstein & Lehr Chicago partner, told Crain’s Chicago Business that the increased majority would almost certainly slow the spread of bulk sales.
Pictured: The 449-unit River City, which represented the largest deconversion sale in Chicago history.
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