Kovitz Shifrin Nesbit attorneys recently represented a Chicago condominium association in the sale of all of all units in the condominium to a third party. KSN attorneys Kelly C. Elmore and Scott A. Weinstein (working with the underwriting, examining and closing teams), closed all 87 residential units and 57 parking units in 5 days. The sale of the Lincoln Park property was approved by a vote of the unit owners under Section 15 of the Illinois Condominium Property Act. KSN attorneys also crafted a contract that allowed the Association unit owners to receive a refund of all operating and reserves accounts, allowed the unit owners to remain as tenants on the property and to receive reimbursement for a portion of legal fees incurred on the transaction.
The “Section 15 sale” is a process in which a buyer makes an offer to the owners to purchase all of the units in the association and, with few exceptions, requires the approval of not less than 75% of the ownership of the common elements.
Many developers are acquiring condominium buildings for the purpose of converting them into apartment buildings. The conversion of condominium associations into apartment buildings that can be rented at steadily increasing market rental rates is a phenomenon that has surged in recent months, providing a profitable venture to many local and national investors.
Kovitz Shifrin Nesbit attorneys have extensive experience handling Section 15 sales and de-conversion transactions. They have closed on the bulk sale of units in a number of small, mid and large sized condominium associations. KSN is uniquely set up to handle these types of transactions due to its in house resources and full service departments, including an experienced Condominium Corporate Practice Group, Corporate/Real Estate Practice Group, as well as an in house title agency. The KSN condominium department advises Board members and unit owners during the contract negotiation, while the closing team and real estate legal team prepare all the necessary documentation for the closings, facilitating the execution of the individual unit closings.
If your condominium association is considering a de-conversion or sale of all units in the building, please contact Kovitz Shifrin Nesbit at 855-537-0550 or visit www.ksnlaw.com.
Please note: Kovitz Shifrin Nesbit will be presenting a Section 15 sales and de-conversion symposium on Wednesday March 8th, 2017 from 6:00-7:30pm at Loyola University Schreiber Center (16 E Pearson St, Wintrust Hall, Chicago, IL 60611).
The symposium will feature KSN attorneys David Bendoff, Kelly Elmore, Ryan Shpritz, and Scott Weinstein as they discuss the de-conversion trend, challenges presented in Section 15 sales, their experiences in handling these transactions, best practices, and more.
Space is limited to 60 attendees (first-come, first-served basis). Click here to register.