The Co-op to Condo Conversion Specialists™
Mountain Club Condos
- Client
- Mountain Club Condos
- Date Converted
- 2005
- Location
- New Jersey
- Building Website
- Visit online
Property Information
| Location | Parsippany, New Jersey |
| Number of Units | 702 |
| Year Built | 1968 |
| Year Converted to Condo | 2005 |
Before Conversion
As a Co-op
After Conversion
As a Condo
- A large complex (702 Units) converted from rentals in 1988, the co-op units never recovered in sales prices from the decline in the early 1990’s. Owners were forced to rent due to low resale values, making the community more tenant-concentrated than was desired.
- As a co-op, owners were limited in their options to refinance or get home equity loans since unit values remained low compared to the loan amount they needed.
- There was significant deferred maintenance in the complex and virtually no reserves to fund the necessary work.
- After conversion, unit values doubled and market absorption significantly improved. Investor owners were able to sell their units to owner-occupants at higher prices thereby increasing the owner occupancy levels in the community.
- As part of the conversion, ROA Hutton secured Fannie Mae & FHA approval which provided the best available mortgage terms for years to come.
- Almost $2.5 Million was raised through the conversion, allowing owners to borrow their share in conversion loans.
Results from the Conversion of Mountain Club
Value as a Cooperative |
$110,000 |
Add: Obligation (Underlying Mortgage, Fees & Closing Cost) |
$39,500 |
Total Investment |
$149,000 |
Condominium Values after Conversion |
$200,000 |
Net Increase in Wealth (Equity) |
$51,000 |
PDF of Case Study: Mountain Club Case Study