Case Study

San Tomas Estates

96-unit San Jose conversion

Property location

1335 Phelps Ave, San Jose, CA 95117

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.

Year Built

1971

Underlying Mortgage

No underlying mortgage; fees and 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

Located in the suburbs of San Jose, CA, this co-op had a sister complex that was a condominium wherein units were selling for $100,000 more than the co-op units next door.

There were only two (2) lenders that were willing to offer share loans to buyers or existing shareholders wanting to refinance. There was virtually no choice as to terms, rates or costs.

The co-ops aged governing documents was not as effective in the enforcement of house rules as the members would like.

After conversion

The documented outcomes

Immediately after the conversion was approved, units at the co-op sold for much more than previous asking prices and in a shorter time period. Values after conversion were even higher.

The Hutton Group and its Primary Lender arranged for Fannie Mae approval which provided competitive rates and terms for the conversion and beyond.

The Hutton Group helped the association adopt updated condominium governing documents with clearer enforcement provisions.

Project record