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| The Conversion of your cooperative corporation is
proposed as a solution to a staggering reduction in values of units in
the existing cooperative ownership structure. It is also a desired
vehicle in which to assure prompt and successful sale of units, which a
Sponsor may continue to own. Moreover, selling Shareholders will be able
to liquidate their property at higher values. |
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By converting the cooperative units into condominiums, the
inherent value of each Shareholder's investment will increase.
Moreover, the target market would expand to include those who
would never consider purchasing a cooperative because of high
maintenance costs. Maintenance fees will be reduced to under
one-half (1/2) of their current levels, thus reducing the stigma
of high cooperative maintenance fees. |
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One concern that existing Shareholders will have is the
ability to maintain the status quo, if they are not desirous or able to
redeem their units. This could be the case where a Shareholder may have
purchased his unit as a cooperative at a very high price and leveraged
such purchase at the time of sale. At current market values, these
Shareholders may not be able to find lending institutions to provide
sufficient mortgages to liquidate their share loan and have sufficient
cash to redeem their unit from the Cooperative. In those rare cases, ROA
Hutton will develop a strategy to allow these shareholders a certain
period of time, post-conversion, to either sell their units as a
condominium or to refinance their obligations once unit values are
further enhanced through a post-conversion market plan. |
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Please
Call us at any time with questions concerning your
Conversion. 1.888.676.5070
You
can reach us by Email at: roahelp@roahutton.com
Send
e
mail to roahelp@roahutton.com
with questions or comments.
Copyright © 2003 ROA HUTTON |
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