Case Study

1543 West 1st Condominium

59-unit Brooklyn conversion

Property location

1543 West 1st Street, Brooklyn, 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

Although Brooklyn real estate values were up, the prices for the co-op units in the building were declining or stagnant.

The Co-op lacked sufficient financing options which only a few banks willing to lend to purchasers or owners wanting to refinance.

The Co-op had limited reserve funds and needed money for renovation of the elevator.

After conversion

The documented outcomes

At conversion, units were appraised at nearly $100,000 more as a condominium than as a co-op. Immediately after conversion, owners put units on the market at these higher condo prices.

The Hutton Group arranged for Fannie Mae approval and shareholders were given the opportunity to finance their conversion with low interest rates that significantly reduced their monthly costs.

The conversion provided the funds which will be used for the elevator and other capital projects.

Project record

Documented project scope

The source record does not provide a complete financial return table for this project, so only verified scope details are shown.

Units Converted59

Underlying MortgageNo underlying mortgage existed; fees & closing costs only

No unknown, estimated, or unavailable values are displayed.

Community voices

What residents say

Comments from board members and owners help show how the conversion was experienced inside the community.

“Hutton made the conversion of our building to a condominium a reality despite the difficulties caused by the current state of the economy, changing regulations and the mortgage market. The team at Hutton is professional, competent and superbly effective in getting the job done.”

Sofya Golkhovaya, Board President

“We wanted to own our units with individual deeds. We knew The Hutton Group were the experts and they addressed every issue with detailed precision. Those who financed were able to secure low-rate Fannie Mae loans based on full condominium values that appraised at prices much higher than as co-ops.”

Roman Rozenberg, Board Member

Property location