The owners of Treehouse in the Woods, a 220-unit townhouse complex tucked into Round Lake, are looking to unload the entire community in one shot, pitching it as a turnkey rental play for a deep-pocketed buyer. The ask: $59.5 million for the 27.5-acre site, which the sellers are framing as a faster, lower-risk way to create single-family-style rentals than slogging through a ground-up subdivision.
Brokers working the deal say the pitch is tailor-made for build-to-rent investors who would rather modernize existing townhomes and freshen up amenities than start from bare dirt. “In the suburbs, rents are strong,” one broker said, noting that roughly half of the complex is already leased. Those details and the listing were reported by CoStar.
Unit Mix And Neighborhood
Treehouse in the Woods dates back to the mid-1990s and is made up mostly of two- and three-bedroom townhouses, many with attached parking and balconies, according to local property listings. Neighborhood MLS pages show individual units actively listed for sale or rent, underscoring the development’s footprint in Round Lake. Those listing details are reflected on Coldwell Homes and other property sites.
How A Bulk Sale Would Work
A buyer aiming to turn the condos into a pure rental community cannot simply write a check and call it a day. Any bulk acquisition requires a supermajority vote of current owners, a process that often gives holdouts considerable leverage. Fans of deconversions say these deals can let owners cash out at a premium while giving investors the scale to address long-delayed maintenance, but the vote threshold is crucial. As reported by CoStar, Illinois law requires about 75% approval for a bulk sale, while the bar in Chicago is roughly 85%. That math will help determine what kind of offers a buyer can realistically make for the Round Lake complex.
Where This Fits In The Market
The Round Lake listing slots into a broader wave of suburban condo and townhouse conversions that surged over the last decade as investors chased single-family and townhome rental product. Industry observers say deconversions have cooled at points because of rising interest rates and other headwinds, yet steady suburban rent growth has pulled investors back toward existing stock. Analysts and brokers have highlighted similar transactions in the Chicago region as examples of that pattern, according to The Real Deal.
What Comes Next
Chicago-based 33 Realty is handling the marketing and lists condo deconversions as one of its brokerage specialties, so Treehouse in the Woods is very much in its wheelhouse. Owners interested in the process, along with institutional buyers eyeing bulk deals, can find contact information and the firm’s pitch materials at 33 Realty.
