Chicago Conversion Condos

In the past condo units in Chicago were mostly purchased by the wealthy or retired. But now demand for Chicago condos is very high amongst young singles, college students and those looking for a starter home. Condos have a lot of advantages - they include parking spots, swimming pools, workout facilities, cleaning services, as well as good security. This has lead to increased demand of condos and now such properties are easy to find in any neighborhood and in any price range.

Conversion of old apartment buildings into condos is very common. Most of these conversions are taking place in buildings which are less than 5 years old. Compared to the resale units, the conversion condos are more luxurious, larger and affordable. It is a popular option to turn any building that is not making a profit into condos.

Condo conversions are a very profitable business for developers in Chicago, because they provide a very quick way of turning a building around, plus the interest rates are typically low for loans on such projects. Once finished, condominiums are sold out quickly; for example, the 52-story Park Millennium, which is currently being converted, has sold two-thirds of its 480 units in just 90 days. Other reasons for the wave of condo conversions are urban housing shortages, low mortgage rates, and soft office leasing markets. As a result, historic downtown office buildings find new life as luxury condos.

The number of condo conversions in Chicago in recent years is still far from the peaks that were reached in the 1980's when tens of thousands of rental apartments were converted into condominiums. This year nearly 2,000 rental apartments are expected to be converted and sold as condos.

The main advantages for buyers are that Chicago condo conversions allow them to buy in locations that are otherwise unavailable because the areas are built out, and also because they are more affordable. Condos present a much better alternative than paying rent, since rents in downtown high-rises are now averaging $2 per square foot a month. On top of that, after a condo conversion, the property is greatly improved and usually there are no more improvements that need to be made. The 401 East Ontario Street building was converted to a condominium project, where the apartments, which range in price from $165,000 for a 700-square-foot one-bedroom to $492,900 for an 1,800-square foot three-bedroom, are not otherwise being renovated unless buyers purchase a separate renovation package. Basically, through condo conversions, buyers get apartments at cheaper per-square-foot prices than in new buildings.