The Co-op to Condo Conversion Specialists™
Figueroa Arms
- Client
- Figueroa Arms
- Date Converted
- 2015
- Location
- California
Property Information
| Location | Los Angeles, CA |
| Number of Units | 75 |
| Year Converted to Condo | 2015 |
Before Conversion
As a Co-op
After Conversion
As a Condo
- Unit values were 1/2 or less than they were at the market height with some owners being up-side-down with their mort-gage vs market value of the units. Some owners were forced into foreclosure, further reducing unit values.
- There were no lenders that were willing to finance new purchasers or refinance existing member loans. Units sold all cash at depressed prices.
- Years of unpaid property taxes, deficit spending and three mortgages had the co -op facing foreclosure.
- The conversion created immediate market acceptance and lift prices by at least 80%. Owners who wanted to sell can now afford to payoff their loans thereby reducing the foreclosures in the building and increasing unit prices.
- As condos, units now qualify for loans with unlimited lenders. Fannie Mae project approval will provide the best terms and support higher unit values.
- Hutton arranged a new Group Loan for the condominium HOA that paid off all obligations and left cash for reserves.
Results from the Conversion of Glenview Condos
Value as a Cooperative |
$75,000 |
Condominium Values after Conversion |
$145,000 |
Net Increase in Wealth (Equity) |
$70,000 |
PDF of Case Study: Figueroa Arms Case Study