The Co-op to Condo Conversion Specialists™
Columbia Heights
- Client
- Columbia Heights
- Date Converted
- 2006
- Location
- Viriginia
Property Information
| Location | Arlington, Virginia |
| Number of Units | 102 |
| Year Converted to Co-op | 1942 |
| Year Converted to Condo | 2006 |
Before Conversion
As a Co-op
After Conversion
As a Condo
- Older cooperative with minimal market acceptance in an otherwise healthy suburban market outside of Washington DC even with NO underlying mortgage to support.
- Few lenders would provide financing to purchasers or owners seeking refinancing options.
- During Conversion preparation, ROA Hutton engineers discovered a non-conforming use of part of the Co-op’s land.
- Since there was no underlying mortgage, the few shareholders with share loans to refinance, the conversion costs were out-of-pocket.
- Unit values increased over 3-fold immediately after closing. Although condo values for the converted units eventually declined with the overall market, units still doubled in value.
- Hutton arranged Fannie Mae approval which allowed buyers to purchase or refinance at the lowest rates available and with downpayments as low as 3%.
- Hutton funded the re-plating to allow for zoning approval which paved the way to the conversion of the cooperative to a condominium under Virginia law.
- Hutton and the Co-op Board agreed upon a fee structure that allowed the Co-op to subsidize the conversion fee which allowed many to close with cash.
Results from the Conversion of Columbia Heights
Value as a Cooperative |
$70,000 |
Add: Obligation (Fees and Closing Costs only and partially subsidized by the Co-op. No underlying mortgage existed) |
$3,000 |
Total Investment |
$73,000 |
Condominium Values after Conversion |
$190,000 |
Net Increase in Wealth (Equity) |
$127,000 |
PDF of Case Study: Columbia Heights