The Co-op to Condo Conversion Specialists™
109-18 Lefferts Condominium
- Client
- 109-18 Lefferts Condominium
- Date Converted
- 2007
- Location
- New York
Property Information
| Location | Queens, New York |
| Number of Units | 24 |
| Year Converted to Co-op | 1983 |
| Year Converted to Condo | 2007 |
Before Conversion
As a Co-op
After Conversion
As a Condo
- Even with no underlying mortgage, the unit values as a co-op were well below comparable condominiums.
- The Co-op suffered from a lack of sufficient working capital and was constantly behind in meeting its payments to vendors.
- Some shareholders were concerned that with the value of their units increasing by 60% to 80% as condominiums, their property taxes would also increase dramatically after conversion.
- Immediately after conversion (less than 30 days), an owner sold his unit as a condominium at a price that was for nearly 70% more than the co-op price.
- The conversion to condominium raised funds for working capital and capital reserves for future repairs and replacement of common areas.
- ROA Hutton was successful in working with the Queen’s Tax officials to assure that each owner was assessed the same as a condominium unit owner as they were as a co-op; resulting in no increase in property taxes due to the conversion.
Results from the Conversion of 109 Lefferts
Value as a Cooperative (40% Increase) |
$150,000 |
Add: Obligation(No underlying mortgage existed; fees & closing costs only) |
$12,000 |
Total Investment |
$162,000 |
Condominium Values after Conversion |
$250,000 |
Net Increase in Wealth (Equity) |
$88,000 |
PDF of Case Study: Lefferts Case Study