HOAleader.com - Tip of the Week - May 18, 2018
Published: Fri, 05/18/18
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Condo Deconversions Gain More Steam in Illinois
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In this week’s tip, our veteran writer Gabriella Filisko admits to learning something new.
“Imagine my surprise, as a writer about community associations, to hear that her neighbor’s 49-unit north-side Chicago condo building had been approached about being bought out, with the new owner turning the units into rentals,” she writes. The owners approved the sale, and the building is no longer a condo association.
Also imagine her surprise when another neighbor in the real estate management business said that’s happening a lot in Chicago.
This is pretty common in the Chicago area today, reports James P. Arrigo, an attorney at Rathje & Woodward in Wheaton, Ill., who has counseled and represented HOA and condominium associations ranging from 6 to 1,600 units for more than 14 years.
Indeed it is. In March, a Chicago law firm, Kovitz Shifrin & Nesbit, boasted that it had closed the largest deconversion in downtown Chicago history with deconversion of the 296-unit Century Tower condo building. KSN also listed four more deconversions in 2016 and 2017—totalling about 450 units—and said it’s working on 18 more transactions scheduled to close this year.
“The term we use here is deconversion,” explains Arrigo. “It often happens where a condo may have been converted to condos in the past and is converted back into apartments again. But it’s also used generically where units are being sold and the property is being used as a rental. It’s definitely growing.
“There’s a trend nationwide of a shortage of rental properties and a glut of condo properties available,” adds Arrigo. “There’s booming demand for rental properties. But I haven’t heard much about deconversion outside Illinois.”
The view from Florida shows some deconversion activity, according to Lisa Magill, of counsel at Kaye, Bender & Rembaum in Pompano Beach, Fla., who advises Florida community associations. “It’s not as frequent to convert a condo building to an apartment building,” she says. “But the fallout from 2008-2009 crash has enabled some property owners to obtain majority or high-majority control of buildings and turn them back into to a single-owner apartment complex.
“We’re also seeing more rehab of properties, especially beachfront, that are underutilized,” states Magill. “So you’ll see developers actively pursuing purchase of those, which means you’d have to terminate the condo association.”
Our new article, "Who Knew De-Condo-Izing (Actually, Deconversion) Was a Thing?" tells you all you need to know about the process and pros and cons of condo deconversions:
https://www.hoaleader.com/members/3723.cfm
Best regards,
Matt Humphrey
President
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Recent articles posted at HOAleader.com:
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Who Knew De-Condo-Izing (Actually, Deconversion) Was a Thing?
Imagine my surprise, as a writer about community associations, to hear that my neighbor's 49-unit north-side Chicago condo building had been approached about being bought out, with the new owner turning the units into rentals. The owners approved the sale, and the building is no longer a condo association.
Click here to read full article:
https://www.hoaleader.com/members/Who-Knew-DeCondoIzing-Actually-Deconversion-Thing.cfm
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Apps Aren't Taking Over the Condo/HOA World (But One Condo Manager Loves His!)
HOAs and condos could really benefit from an app created specifically for their community, but few are taking that step. In this week's tip, we discuss why.
Click here to read full article:
https://www.hoaleader.com/public/Apps-Arent-Taking-Over-CondoHOA-World-But-One-Condo-Manager-Loves-His.cfm
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Apps Could Help HOAs, But Few are Creating Them
Lou Haverty is on the board of a small condo building in Philadelphia. It's self-managed, but Haverty says he could see bringing on a management company in the future.
Click here to read full article:
https://www.hoaleader.com/members/Apps-Could-Help-HOAs-But-Few-are-Creating-Them.cfm
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Community Association Insurance Made Easy--and 10 Must-Have Endorsements to Save Money and Your Skin
Insurance is critical because a lack of coverage for an unexpected accident--aren't they all unexpected? The good news is that community association insurance isn't as complicated as you may think. In an in-depth webinar on May 31, we'll help you understand this critical tool for your condo or HOA.
Click here to read full article:
https://www.hoaleader.com/products/community-association-insurance-made-easy-a.cfm
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New Report: Expect to See More States Limit Fees for HOA Services
In this week's tip, we report on a trend that will likely continue into the future, according to a new report from community association management company Associa®.
Click here to read full article:
https://www.hoaleader.com/public/New-Report-Expect-See-More-States-Limit-Fees-for-HOA-Services.cfm
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