Equity Residential Selling Suburban Chicago Apartments to Condo Converter

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Equity Residential Selling Suburban Chicago Apartments to Condo Converter

Thursday, February 09, 2006

By Jeff Mordock, Commercial Real Estate Direct Staff Writer Equity Residential has agreed to sell Bourbon Square, a 612-unit apartment complex in the Chicago suburb of Palatine. The Chicago REIT sold the property to a national condominium converter. The new owner will gradually convert the property into for-sale condominiums through a multiple-phase plan. Equity had placed the property on the market this fall through Holliday Fenoglio Fowler. Although an exact purchase price was not disclosed, the property sold for around $80 million, nearly $130,718/unit. Equity Residential carries the property on its books at about $47 million. The sale price would be in line with area comparables. Chicago-area apartments sold specifically for condominium conversions are selling around $134,189/unit. Bourbon Square has one-, two- and three-bedroom units ranging in size from 1,380 square feet to 1,440 sf. It is not known whether units will be reconfigured in a condo conversion. The property sits at 500 Constitution Drive, nearly 30 miles from downtown Chicago and 14 miles from O'Hare Airport. It was completed in 1985.