Case Study

109-18 Lefferts Condominium

24-unit Queens conversion

Property location

109-18 Lefferts Blvd., Queens, New York

Total Units

State

Property details

Context that shaped the conversion

These project specifics help explain why the conversion path and results differed from one building to another.

Underlying Mortgage

No underlying mortgage existed; fees & closing costs only

The transformation

From constraints to outcomes

Each project began with a specific set of financing, legal, or market challenges and moved through a different path to a successful outcome.

Before conversion

The constraints

Even with no underlying mortgage, the unit values as a co-op were well below comparable condominiums.

The Co-op suffered from a lack of sufficient working capital and was constantly behind in meeting its payments to vendors.

Some shareholders were concerned that with the value of their units increasing by 60% to 80% as condominiums, their property taxes would also increase dramatically after conversion.

After conversion

The documented outcomes

Immediately after conversion (less than 30 days), an owner sold his unit as a condominium at a price that was for nearly 70% more than the co-op price.

The conversion to condominium raised funds for working capital and capital reserves for future repairs and replacement of common areas.

The Hutton Group was successful in working with the Queens Tax officials to assure that each owner was assessed the same as a condominium unit owner as they were as a co-op; resulting in no increase in property taxes due to the conversion.

Project record