Lake View Condo Deconversion Trends, Values & Taxes

Have you heard about Lake View condo buildings turning back into rentals and wondered what it means for your home’s value? You are not alone. Deconversions can change resale timelines, taxes, and neighborhood supply, so it pays to understand the rules and signals early. In this guide, you’ll learn how condo deconversions work in Chicago, why Lake View is a target, how values can shift, and the smart steps to protect your plans. Let’s dive in.

Condo deconversion basics in Chicago

Chicago’s 85% vote rule

Inside the City of Chicago, a bulk sale that would terminate a condo building requires approval from 85% of unit owners, unless your governing documents require more. The City Council raised the threshold in 2019 to make forced sales more difficult for dissenting owners, a change summarized in this legal overview of Chicago’s 85% deconversion rule. Statewide, the Illinois Condominium Property Act still sets a 75% standard, and it also defines objection rights and payout rules for owners who do not vote in favor of a sale. You can review the statute text in the Illinois Condominium Property Act.

How a deconversion happens

A typical process looks like this: an investor or broker approaches your board with an offer to purchase all units, the board explores terms with counsel, and owners later vote on a sale. If the required percentage approves, the sale binds all owners, closings are organized, and the buyer renovates and leases units as apartments. For a clear overview of timelines and board duties, see this practitioner outline of how deconversions work in practice.

What dissenting owners may receive

If a sale passes and you object in writing on time, state law entitles you to receive from the sale proceeds the greater of a fair appraisal of your interest or the outstanding balance of a bona fide mortgage used to buy or refinance the unit, less unpaid assessments. The law also provides for certain relocation expense reimbursements under federal standards. These protections are detailed in Section 15 of the Illinois Condominium Property Act.

Why Lake View sees them

Rental demand favors investors

Chicago’s multifamily market has seen solid renter demand and mid-single-digit vacancy, which supports investor appetite for buying entire condo buildings and repositioning them as rentals. Recent market summaries cite vacancy around the mid-4% range in 2025, highlighting the strong fundamentals that drive these offers. You can see the broader context in Chicago multifamily market insights.

Older buildings with big repairs

Many North Side condo buildings from the 1960s to 1980s face costly upgrades for windows, elevators, roofs, and mechanicals. When reserves are low or special assessments loom, bulk buyers see opportunity. Coverage of Chicago’s trend points to deferred maintenance and investor ownership levels as common triggers, as noted in this market driver summary and this broker analysis of owner motives.

Local case: 420 W Belmont

A well-known Lake View example is the 207‑unit tower at 420 W Belmont, purchased in a bulk sale and later repositioned as rentals. Trade coverage shows how large, vintage lakefront buildings attract investor attention and capital. Read more about the 420 W Belmont deconversion.

How deconversions affect values

During a vote, resale can stall

When a building is considering a bulk sale, uncertainty can slow unit resales. Buyers and lenders may hesitate, and some mortgages become harder to underwrite if a single investor controls many units. Practitioner accounts describe owners feeling stuck during this period; see this overview of the limbo effect during deconversions.

Neighborhood supply and pricing

When condos become apartments, the overall condo supply shrinks. That can support values in nearby, comparable condos if demand stays steady, though results vary by building type and condition. Broker commentary shows that some owners receive premiums in a bulk sale while others see little uplift, as discussed in this neighborhood effects summary.

Taxes and assessments can shift

After a bulk sale or major price change, the Cook County Assessor may reexamine values for the building and similar properties. Because condo taxes are calculated using your unit’s percentage of ownership, changes at the building level can affect your bill. For methodology and appeal timing, review the Assessor’s guide on how condos are valued.

Red flags and owner actions

Signs your building is a target

• High investor concentration or a small group controlling many votes. See this local report on ownership concentration risks.
• Chronic underfunding of reserves or repeated large special assessments.
• Broker solicitations or letters seeking to buy multiple units.

Steps to protect your position

• Review and, if feasible, amend your declaration or bylaws to add guardrails, such as limits on non‑owner occupancy or unit concentration, with guidance from experienced condo counsel.
• Keep reserves funded and budgets transparent. Strong financials can reduce pressure to sell.
• If your board receives an offer, get independent legal and valuation advice early, and make sure owners understand their rights and timelines. For practical checklists, see this guide to navigating deconversion proposals.

Buyer checklist in Lake View

Documents to review

• Recorded declaration, bylaws, and amendments to confirm voting thresholds, percentage interests, and any resale or occupancy rules. The statutory framework for sale and objection rights is in the Illinois Condominium Property Act.

Questions to ask

• What is the owner‑occupancy rate, and does any person or entity hold many units? High concentration can raise deconversion risk. Local reporting has flagged these as common signals of investor control, as noted in the ownership concentration discussion.
• Are there recent special assessments, a reserve study, or pending litigation? Healthy reserves and clear maintenance plans are good signs.
• Are there any notices about bulk sale solicitations or a vote? If yes, expect longer timelines and talk to your lender and attorney early. For process pointers, see this step‑by‑step overview.

What this means for your move

If you own in Lake View, a potential deconversion can affect timing, pricing, and taxes. If you are buying, focused due diligence can help you avoid surprises and protect resale value. In either case, clear information and steady negotiation make all the difference.

If you want a data‑driven read on your building or a buyer’s checklist tailored to your target block, connect with Alejandro Trujillo for local guidance with investor‑level insight.

FAQs

What is a condo deconversion in Lake View?

• A deconversion is a bulk sale of all units in a condo building to a single buyer who usually terminates the condo and operates it as rentals under Chicago’s governing rules.

What vote is needed in Chicago to deconvert a condo building?

• Inside Chicago, 85% of unit owners must approve a bulk sale unless your documents require more, as summarized in legal guidance on the city’s rule.

How can a deconversion affect my unit’s resale value?

• During a pending vote, uncertainty can slow sales and financing, which may pressure prices; afterward, reduced condo supply can support nearby values depending on building quality and demand.

If I object to a deconversion, what can I expect to receive?

• If you object on time, Illinois law provides the greater of a fair appraisal of your interest or your qualifying mortgage balance from sale proceeds, less unpaid assessments, plus certain relocation cost protections.

What should buyers check to avoid deconversion risk?

• Review the declaration and bylaws, reserves and assessments, owner‑occupancy rate, any unit concentration by one entity, and any notices of solicitations or votes before you submit an offer.

Are property taxes likely to change after a bulk sale?

• They can, because the Assessor may revalue the building and apply your unit’s percentage interest, which can change your tax bill in the following assessment cycle.