The move complicates Chicago-based Trilogy Real Estate Group’s plans to acquire all 277 condominiums in one of the three towers of the Optima Old Orchard Condominium complex on the west side of the Edens Freeway. I will. Trilogy, who already owns more than 60% of the units in the tower, wants to buy the remaining units, but a small, vocal group of residents oppose the deal.
Optima resident Rabbi Ralph Luebner called the proposed takeover of Trilogy a “hostile takeover” and said the deal would allow many elderly and vulnerable residents to buy their homes in a building known as Maple Tower. claimed to lose
It’s a debate that has disrupted many local condo properties over the past few years as large investors have pursued condo repurposing in cities and suburbs. Investors like Trilogy can profit from price discrepancies because the value hasn’t gone up.
But not all condo owners want to sell, so the deal is difficult.Some keep higher prices, others refuse to sell at any price, Often it’s out of an emotional attachment to a condo or a fear that you won’t be able to find a new place to live that’s affordable and comparable.
Illinois condominium laws give some protection by requiring a majority of owners (75%) to vote to approve a bulk sale. Chicago is the only other municipality in the state with a higher threshold. Approved 85% voting requirement 2019.
Skokie’s measures, which apply to all condos with 10 or more units in the village, may hamper Trilogy’s plans, but they may not stop it. Investors have been making acquisitions and conversions since Chicago approved his 85% rule three years before him. multiple buildings in the city. For example, in 2021, nearly 90% of the owners of his 51-story condominium tower in River North have voted to approve a bulk sale. Struggling to raise funds The $190 million deal is the largest deconversion in Chicago history.
“Obviously, 85 is higher than 75, but it can still happen,” said Asher Bronfeld, president of the Maple Tower Condo Board.
Skokie Mayor George Van Dusen told the board of directors that the village still needs to finalize the new ordinance, which will likely go into effect by the end of the year.
It’s unclear what the trilogy will do next. The company’s chief investment officer, Jesse Karasik, declined to comment today. In an interview earlier this month, Karasik said he was confident Maple Tower condo owners would approve the proposed sale to Trilogy whether the village’s vote requirement was 75% or 85%. said.
Bronfeld said he was neutral about the trilogy proposal. However, many people within the building have strong opinions about it. Among them are residents who view the transaction as an opportunity to sell their condo at a price never achieved through a traditional sale.
“Some people want to sell it, some people don’t want to sell it, and it creates a dispute between the owners,” Bronfeld said. “Not everyone will be happy.”