1400 N. Lake Shore Drive, Chicago

CHICAGO—ESG Kullen of New York City has closed on the historiccondo deconversion of the 391-unit 1400 N. Lakeshore Drive complexhere in a deal valued at $107 million.

The transaction marks the highest sale price achieved for a bulkcondo sale in the history of Chicago, according to CBRE, whichbrokered the deal. New ownership will deconvert the property backto apartments.

CBRE's Sam Haddadin and Dan Cohen represented the 1400 N.Lakeshore Drive Condo Association and association president MichaelB. Arrington in the sale.

Located on Lakeshore Drive, the property is a few blocks fromOak Street Beach and within walking distance of a host of retail,dining and public transportation options.

Completed in 1927 and converted to condos in 2006, 1400 N.Lakeshore Drive offers multiple unit sizes, with 79% of theproperty comprised of studios and one-bedroom units, rangingbetween 284 square feet and 768 square feet. The remaining 21% ofthe property is two-bed/two-baths or three-bed/two-bath units. Thebuilding has received several capital improvements in recent years,including façade repair in 2017 and updated elevators in 2016, andoffers a large rooftop deck for residents.

"This is a historic deal for the Chicago multifamily market,"says CBRE's Haddadin. "There has never been an opportunity quitelike this, and, as a result, condo owners were able to achieve anew high-water mark for condo deconversion pricing in Chicago."

The deconversion deal closed on Nov. 22 and took about ayear-and-a-half to complete, according to a report in Crain'sChicago Business.

Back in April, ESG Kullen, acquired 189 units and the majorityownership at the Cobblestone on the Lakes fractured residentialcondominium property in Fort Myers, FL.

ESG Kullen, which is active in the South Florida distressed andvalue-add multifamily investment markets, secured $33 million fromPembrook Capital Management LLC of New York City in connection withthat deal.