Multifamily N Illinois

Marcus & Millichap brokers $10.3M deconversion sale

Marcus & Millichap brokers $10.3M deconversion sale,ph1

Marcus & Millichap has brokered the $10.3 million deconversion sale of 227 E. Walton Place, a 13-story multifamily building in Chicago’s Streeterville neighborhood. The buyer, a group of private investors based in California, plans to convert the property’s 25 condos back into rentals.

Working out of Marcus & Millichap’s Downtown Chicago and Chicago Oak Brook offices, Kyle Stengle, Austin Weisenbeck and Sean Sharko, senior vice presidents of investments, and Brewster Hague, associate, facilitated the transaction. The sale price equates to $412,000 per unit.

“The incredible demand for apartments in Streeterville made this property extremely desirable to investors,” said Stengle. “Our extensive deconversion experience led to a successful transaction so the buyer could quickly add these units to the rental market. The individual condo owners were also pleased with the final sale terms, which produced a fair market price that would be difficult for them to attain individually.”

The Harry Weese-designed building was built in 1956 and sits a half block west of Lake Shore Drive and one block south of Oak Street Beach. Twenty units in the building provide 1,325 square feet of living space with two bedrooms and two baths. The other five comprise three one-bedroom and two three-bedroom units. Most residences have been recently updated with granite countertops, maple cabinetry and hardwood flooring. The property also offers 19 parking spaces and additional private storage in the basement.

“The building will satisfy renters who want spacious living downtown at a more reasonable rate than a similar-sized unit in a newly constructed building,” said Stengle. “We also provided a plan to improve amenity spaces like the rooftop deck and party room—features desired by many downtown renters that will create additional value for the buyer.”

The proximity to public transit and numerous retail, restaurant and cultural attractions adds to the property’s appeal, noted Stengle. Residents are a short walk from high-end retailers at Water Tower Place and along the Magnificent Mile. Dining options, from four-star international restaurants to small pubs, abound in Streeterville, and popular entertainment destinations like Navy Pier and The Museum of Contemporary Art Chicago are just blocks from the building.