Case Study

Shoreview Estates

72-unit Shoreview conversion

Property location

4045 Hodgson Rd, Shoreview, MN 55126

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

1973

Underlying Mortgage

Yes (With Underlying Mortgage)

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 about 15 miles from St. Paul, MN, the co-op was home to many empty-nesters who gave little thought to the declining values of the units until they or their family members could not sell or refinance the units at any price.

Even with declining values, shareholders were asked to pay monthly fees to maintain the property and to meet payments on the underlying mortgage.

Seniors in the co-op had no opportunity to participate in reverse mortgages (not allowed for co-ops and no equity existed).

After conversion

The documented outcomes

Immediately after the conversion, unit prices nearly doubled and the property was re-introduced as a value-based condominium with great conveniences like underground parking and storage space for owners.

Although unit values nearly doubled, total monthly payments (condo fees, taxes and individual mortgage vs. co-op fees) for owners stayed the same or went down after conversion.

The conversion opened the door for reverse mortgages and created the equity to allow owners to use this option.

Project record