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condominium conversion

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condominium conversion

The process of converting a building with tenants, or a cooperative building with tenant-shareholders, into a community of individual owners of specified units and common owners of all common areas. Many states have laws protecting tenants in a building scheduled for conversion. Protections may include lengthy notice periods regarding the plans to convert,prohibitions against drastic rent increases designed to force tenant flight from the building, an exclusive period during which only the tenant may purchase the unit before exposure to the general market,and special protections for the elderly and disabled.



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Developer Harry Jeremias is facing a foreclosure suit on the Jasper, the Ismael Levya-designed condominium conversion in Murray Hill, after defaulting on $83 million in loans and failing to complete the sale of the property to European investors.
By leaving a mortgage on the building, the sponsor can make as much profit as a condominium conversion without being required to utilize a portion of the sales proceeds to satisfy the mortgage.
Early in 2007, a lot of the submarkets here were adversely affected by large numbers of vacant units in failed condominium conversions, which were being reintroduced into the market as rentals.
 
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