“Along with condo deconversion opportunities, bulk condo sales are also desirable investment options for both larger institutional buyers and local investors,” said CBRE’s Zaring. “In this instance, we were able to draw interest from both pools of investors with a broad-based marketing plan. We should continue to see more transactions of this type come to market, with the size of the deals varying from middle-market to large-scale.”
Flats on LaSalle is located in Chicago’s Gold Coast neighborhood and is only a few blocks from the Magnificent Mile. The building includes 250 micro studios and one-bedroom units.
AHC bought the 100 units in 2011 for $4.5 million from the bank that foreclosed on the converter. The value of the units more than doubled in roughly five years.
“Investors are looking for value-add deals with strong upside potential and purchasing condo properties is one place where they can find it,” said Ross, first vice president with CBRE. “This deal is a perfect example of that. Investors want to buy a property that they can renovate and reposition, and we are seeing assets come to market across all sizes that are allowing them the option.”
About CBRE Group, Inc. CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.