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Case Study

Cedarbrook

193-unit Morris Plains conversion

Property location

2350 NJ-10, Morris Plains, NJ 07950

193

Total Units

NJ

State

Cedarbrook

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

Yes (included in conversion obligation)

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

01

Suffered for years from slow sales and extremely low market values, never reaching late 1980s values as co-op units.

02

Was considered ineligible for competitive bank financing and being hostage to only a few expensive lenders.

03

High investor concentration with shareholders having limited exit strategies.

After conversion

The documented outcomes

Units that were selling for $55,000 as co-ops are now selling for over $180,000 as Condos, providing original owners with recovery and expansion of their investments.

The Hutton Group arranged Fannie Mae approval allowing buyers to purchase or refinance at the lowest rates available and with downpayments as low as 3%.

Higher condo values allowed owners to sell to owner-occupants creating a stronger sense of community.

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 Converted193
Underlying MortgageYes (included in conversion obligation)

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.
I for one was skeptical of the entire process of converting from Co-op to Condo, questioning and mostly fighting against every detail—especially the costs involved to shareholders who already were stretched to the very limit. However, Ill be the first to say that converting to Condo was a huge success and entirely beneficial to our owners. Weve seen selling prices go up beyond The Hutton Group's estimates, units have been selling quickly, and there seems to be a demand for units in our complex.

Kim Costa, Board President

We were in a never-ending spiral of few sales and low prices. Shareholders could not afford to sell their shares and the only recourse was renting. This resulted in individuals living in our units who did not have the same concern for our community. This lack of concern caused additional problems, which had a negative impact on the few sales that did occur. We needed an exit strategy that would increase values and sales. The Hutton Group provided that solution and we now are experiencing a minimum of double our previous sales. Five star rating to The Hutton Group!

Jack Black, Board Vice President

Property location

Cedarbrook

2350 NJ-10, Morris Plains, NJ 07950
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