No Excess Inventory Due To Condo Conversion

Inspite of the increase in condo conversions there not much surplus in residential units in downtown. Most of these conversions are taking place in buildings, which are less than 5-year old. Compared to the resale units the conversion condos are more luxurious, larger and affordable. Any building that is not making profit is being converted into condos.

Chicago is heading for a successful year in residential sales. Apartment building that doesn’t produce profit through rentals are giving way to condo conversions, which are much more profitable in this hot market.

Condo conversion is the quickest way to make money, and taking the advantage of low interest rates the condo converters are able to bring the product to the market quickly. The 52-story Park Millennium, which is being converted has sold two-thirds of its 480 units in just 90 days.

Along with new apartments that are being converted there are also aging office buildings like the Palmolive building in North Michigan Avenue and former Wards Headquarters on West Chicago Avenue that are being converted for residential purpose.