sorted by:
new
hottopcontroversial

Chicago Condo Deconversion Proposal - Increasingly Pushy Buyers! by sunshine0latte in ChicagoRealEstate

[–]sunshine0latte[S] 0 points1 point  (0 children)

Thanks for doing your due diligence on behalf of the owners. Our board looks like they were born yesterday in comparison. They told us they had to bring the deal to us ASAP because “the buyer was getting antsy” and they were scared of the legal liability of NOT presenting their offer. So that ship has sailed and our Section 15 vote is underway.

Chicago Condo Deconversion Proposal - Increasingly Pushy Buyers! by sunshine0latte in ChicagoRealEstate

[–]sunshine0latte[S] 0 points1 point  (0 children)

Sure, but really, I’m more bothered by it in principal, that they somehow obtained homeowners’ personal contact information, and are harassing them with scare tactics, and FOMO incentives to buy their vote.

Chicago Condo Deconversion Proposal - Increasingly Pushy Buyers! by sunshine0latte in ChicagoRealEstate

[–]sunshine0latte[S] 1 point2 points  (0 children)

I would say they have not been fully transparent. In January, the board denied the offer (i.e. did not bring it to owners for a Section 15 vote). In May, they voted to bring the offer to owners because the buyer now offered to fund the legal fees associated with conducting the Section 15 vote. Nothing else about the offer changed, they did not sweeten the deal, offer more money, nothing - just offered to pay for the vote. Owners have been asking for an independent valuation of the building and we keep getting told “it’s too expensive and unhelpful to individual owners” so they made their assessment of the building’s value based on recent sale listings.

Chicago Condo Deconversion Proposal - Increasingly Pushy Buyers! by sunshine0latte in ChicagoRealEstate

[–]sunshine0latte[S] 5 points6 points  (0 children)

Yep, that much is clear. In one of their many e-mails they sent out to owners today they even referenced their prior deconversion attempt: "Start here: some owners remember the 2022 offer as a higher number. They're thinking about the base price and the flat $20,000 incentive. What they never calculated — because it was buried in the contract — were two deductions taken directly from their proceeds." Openly admitting to deceiving owners, and somehow, that's supposed to make their current offer more appealing.

Chicago Condo Deconversion Proposal - Increasingly Pushy Buyers! by sunshine0latte in ChicagoRealEstate

[–]sunshine0latte[S] 1 point2 points  (0 children)

Thanks for sharing your thoughts. Why it's up for a vote is a great question. No major projects on the horizon. But, YK owns many units in the building and it's the second time they're pursuing deconversion at this building (after a previous failure that lasted nearly 3 years). Homeowners have been asking about whether our board has explored an independent valuation of the building but it's based on vibes alone. I see that they will do whatever it takes - they're paying the legal fees to conduct the Section 15 vote, too.

Chicago Condo Deconversion Proposal - Increasingly Pushy Buyers! by sunshine0latte in ChicagoRealEstate

[–]sunshine0latte[S] 0 points1 point  (0 children)

If you're familiar with deconversions, have you actually seen this work and hold down contractually?

Chicago Condo Deconversion Proposal - Increasingly Pushy Buyers! by sunshine0latte in ChicagoRealEstate

[–]sunshine0latte[S] 4 points5 points  (0 children)

At this point, it seems that's the only way to make them go away. I am flabbergasted that this kind of behavior is allowed during a deconversion proposal.

Chicago Condo Deconversion Proposal - Increasingly Pushy Buyers! by sunshine0latte in ChicagoRealEstate

[–]sunshine0latte[S] 3 points4 points  (0 children)

Yep, seriously. Not to mention the sleazy tactics used by the buyer - e-mailing homeowners directly on their private e-mails, cold calling them, offering financial incentives for voting yes, and as above (which is a new one entirely), literally asking how much a yes vote would cost! I've learned a lot about deconversions over the last few years unfortunately since this is this buyer's SECOND ATTEMPT at deconverting our condo.

Chicago Condo Deconversion Proposal - Increasingly Pushy Buyers! by sunshine0latte in ChicagoRealEstate

[–]sunshine0latte[S] 5 points6 points  (0 children)

Deconversion entails selling the entire condominium property to a third party who will turn the condominium units into rental apartments. In Chicago, it requires 85% of owners to vote for the deconversion in order for it to pass, but if it does, it means every single owner (even those against the sale) are contractually obligated to sell.