Case Study

Columbia Heights

102-unit Arlington conversion

Property location

5565 Columbia Pike, Arlington, VA 22204

102

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 and Closing Costs only and partially subsidized by the Co-op

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

Older cooperative with minimal market acceptance in an otherwise healthy suburban market outside of Washington DC even with NO underlying mortgage to support.

Few lenders would provide financing to purchasers or owners seeking refinancing options.

During Conversion preparation, The Hutton Group engineers discovered a non-conforming use of part of the Co-ops land

Since there was no underlying mortgage, the few shareholders with share loans to refinance, the conversion costs were out-of-pocket.

After conversion

The documented outcomes

Unit values increased over 3-fold immediately after closing. Although condo values for the converted units eventually declined with the overall market, units still doubled in value.

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

The Hutton Group funded the re-plating to allow for zoning approval which paved the way to the conversion of the cooperative to a condominium under Virginia law.

The Hutton Group and the Co-op Board agreed upon a fee structure that allowed the Co-op to subsidize the conversion fee which allowed many to close with cash.

Project record