Archive for the ‘Condo Conversions’ Category

Chicago Condo Conversions

Saturday, March 28th, 2009

Chicago condo conversions are a dying breed now that the real estate market went into a nose dive. In the late 90’s a few firms were converting condos in Chicago but there weren’t a lot of them.  As the decade and century ended, it seemed like out of nowhere every mom and pop was converting their buildings to condominiums.

Today it’s different.  The cost for buying an apartment building, renovating it and then lifting the price to sell the units as condos is not possible.  Primarily the reason behind this is the amount of condos that are selling at a discount right now.  The Chicago condo market is filled with short sale condos and foreclosed condos causing this huge wholesale condo market.  It will take several years to remove this wholesale market before condo conversions come back in Chicago.  Until then there is a huge amount of conversion inventory that needs to be moved.  There were dozens of developers that were in the middle of conversions when the market tanked sending the developments into a standstill. Today this product is sitting there unsold and at a tremendous discount from two tears ago when it came to a screeching halt.

You can buy condos today from converted units for a 20%-30% discount from what they were selling at in 2006.  I’ve seen deals that are beyond comprehension.  One of the reasons a developer will come down on his price is the bank that hold the loan is at a point of not renewing it.  Banks will give a developer a loan for a certain amount of time.  If the number of condo units is not sold by a particular time, the bank will demand repayment of the loan immediately.  This will put the condo developer in a sticky situation of having to dump a number of units at a discount to meet their quota for the bank.  There are so many developers in this situation today.  You can go in a buy a block of condos at a huge discount, sometimes thirty and forty cents on a dollar if the developer is in that type of trouble.

Chicago condo conversions will come back someday, but not soon.  I predict it will take about five years to clear up this mess with the foreclosures going on today.  There are so many foreclosed condo units that it’s just about impossible to keep up.  The banks have condo inventory like never before.  Until that happens, we won’t be seeing too many condo conversions in Chicago soon.

CONDO CONVERSIONS in CHICAGO

Monday, February 9th, 2009

In 1990, Brian Kuzdas, founded Brookshire Investments, a small commercial real estate company in Hickory Hills, Illinois.  He had a dream of providing quality, affordable home ownership to individuals and families who thought they could only afford to be renters.  In 1997, he purchased his first apartment building.  The project was his first condo conversion in Chicago.

As the industry began to change, Brookshire Investments needed a website name that was easy to remember and in 1999, OwnACondo.com became that website.  At the time, Brookshire focused on its own projects needing only a handful of Realtors to sell its condo conversion in Chicago and the surrounding suburbs.

Six years later, in 2005, a new direction was taken and OwnACondo.com was soon to doing more than condo conversions in Chicago and the surrounding communities.  OwnACondo.com was approached by a development group to market and sell a 347 unit apartment complex in Palatine, Illinois that was converted to condominiums.  After careful analysis, OwnACondo.com decided to accept the contract and sold all 347 units within a six-month period.  The realization was apparent, that other developers need a real estate company that specialized only in condominiums.  OwnACondo.com took its success and decided to become a full-service real estate brokerage specializing in condominiums, handling the sales for its in-house conversion division and the entire Chicagoland market as well.

In January 2006, efforts were focused to marketing the brand OwnACondo.com.  The name was placed on billboards, on the right field wall of The World Champion Chicago White Sox, in radio commercials, major Chicago newspapers and magazines, resulting in thousands of leads.  The company grew from 12 realtors in January 2006 to almost 80 today.  OwnACondo.com is known as “the best place to buy and sell condos.”

OwnACondo.com is dedicated to serving the needs of condominium buyers and sellers.  We are committed to constantly reaching for higher levels and creating better ways to service our clients.  We are driven to provide the best condo selection, financing and education, resulting in the highest quality customer experience.

Originally, OwnACondo.com’s target market was primarily first time buyers with a condo conversion product that typically ranged in the low one hundred thousands.  Our market then shifted to become anyone interested in buying or selling a condominium.  Today, OwnACondo.com has broaded the focus to include helping those who have fallen victim of the foreclosure, through rent-to-own programs.  As we head into the next few years, we are committed to constantly shifting our focus on the target market.

Call us today if you are interested in buying, selling, renting-to-own or condo conversion in Chicago and its surround communities.