The Co-op to Condo Conversion Specialists™
Shoreview Estates
- Client
- Shoreview Estates
- Date Converted
- 2006
- Location
- Minnesota
Property Information
| Location | Shoreview, MN |
| Number of Units | 72 |
| Year Built | 1973 |
| Year Converted to Condo | 2006 |
Before Conversion
As a Co-op
After Conversion
As a Condo
- Located about 15 miles from St. Paul, MN, the co-op was home to many empty-nesters who gave little thought to the declining values of the units until they or their family members could not sell or refinance the units at any price.
- Even with declining values, shareholders were asked to pay monthly fees to maintain the property and to meet payments on the underlying mortgage.
- Seniors in the co-op had no opportunity to participate in reverse mortgages (not allowed for co-ops and no equity existed).
- Immediately after the conversion, unit prices nearly doubled and the property was re-introduced as a value-based condominium with great conveniences like underground parking and storage space for owners.
- Although unit values nearly doubled, total monthly payments (condo fees, taxes and individual mortgage vs. co-op fees) for owners stayed the same or went down after conversion.
- The conversion opened the door for reverse mortgages and created the equity to allow owners to use this option.
Results from the Conversion of Shoreview
Value as a Cooperative (40% Increase) |
$58,000 |
Add: Obligation (Conversion Fees & Closing Costs) |
$6,000 |
Total Investment |
$64,00 |
Condominium Values after Conversion |
$110,000 |
Net Increase in Wealth (Equity) |
$46,000 |
PDF of Case Study: Shoreview Case Study