The Co-op to Condo Conversion Specialists™
Delmar Condominiums
- Client
- Delmar Condominiums
- Date Converted
- 2007
- Location
- New York
Property Information
| Location | Rego Park, Queens, New York |
| Number of Units | 36 |
| Year Converted to Co-op | 1981 |
| Year Converted to Condo | 2007 |
Before Conversion
As a Co-op
After Conversion
As a Condo
- Unit values were stagnant in an otherwise rising real estate market for the past five (5) years.
- The Co-op was unable to obtain a 2nd mortgage with favorable rates or terms; the banks required high reserves and onerous prepayment penalties.
- As a co-op, some owners were unable to refinance or secure home equity loans since unit values remained low compared to the loan amount they needed.
- Soon after conversion, units as condominiums are selling at nearly twice (2X) the prices they sold for as co-ops.
- Unit owners were able to finance their share of the 1st and 2nd mortgages at very favorable interest rates and NO prepayment penalties.
- During the conversion, every owner had the opportunity to finance up to 95% of their unit’s CONDOMINIUM VALUE, allowing them to “cash-out” their new found equity without selling their unit.
Results from the Conversion of Delmar
Value as a Cooperative |
$138,000 |
Add: Conversion Obligation (Including underlying mortgage, fees & costs) |
$32,000 |
Total Investment |
$170,000 |
Condominium Values after Conversion |
$255,000 |
Net Increase in Wealth (Equity) |
$85,000 |
PDF of Case Study: Delmar Case Study