The Co-op to Condo Conversion Specialists™
Berkley Arms
- Client
- Berkley Arms
- Date Converted
- 2002
- Location
- New Jersey
Property Information
| Location | Hackensack, New Jersey |
| Number of Units | 120 |
| Year Converted to Co-op | 1980 |
| Year Converted to Condo | 2002 |
Before Conversion
As a Co-op
After Conversion
As a Condo
- Berkley had a HUD Underlying NON PAY-ABLE Mortgage.
- Just before conversion to condos, units were selling for 1/3 of their original prices paid by shareholders 15 years prior.
- The Co-op Association had to buy back 10% of the units from the Sponsor, but these units would not sell as co-ops.
- ROA Hutton negotiated with underlying lender for the right to prepay and re-duced pre-payment penalties.
- Market values of the condos immediately increased THREEFOLD and have been climbing ever since.
- Units, now sold as condos, provided nearly $1 Million in reserve for the Asso-ciation thereby eliminating the need for a special assessments.
What Owners Say About Their Conversion
“I'm happy to report that our conversion experience showed ROA to be professional, committed to our pro-ject, knowledgeable and fortified with the experience that only comes from having successfully converted other associations.”
Brigit Ruvolo
Property Manager
“The Conversion to Condo was WONDERFUL! I am very happy! It is a very positive thing for the community. As a Co-op it was very difficult to sell. Units would sit on the market for months. Now, as a Condo they sell in a matter of days - if not hours. There is nothing negative to say about the results of converting.”
Betty Garcia-Former
Board Member
Results from the Conversion of Berkley Arms
Value as a Cooperative |
$32,000 |
Add: Conversion Obligation(Including underlying mort-gage, fees & costs) |
$33,000 |
Total Investment |
$65,000 |
Condominium Values after Conversion |
$168,000 |
Net Increase in Wealth (Equity) |
$103,000 |
PDF of Case Study: Berkley Arms