Berkley Arms
2002
Hackensack, New Jersey
Property Information
Location | Hackensack, New Jersey |
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Number of Units | 120 |
Year Converted to Co-op | 1980 |
Year Converted to Condo | 2002 |
Before Conversion as a Co-op
Berkley had a HUD Underlying NON PAY-ABLE Mortgage.
Just before conversion to condos, units were selling for 1/3 of their original prices paid by shareholders 15 years prior.
The Co-op Association had to buy back 10% of the units from the Sponsor, but these units would not sell as co-ops.
After Conversion as a Condo
ROA Hutton negotiated with underlying lender for the right to prepay and re-duced pre-payment penalties.
Market values of the condos immediately increased THREEFOLD and have been climbing ever since.
Units, now sold as condos, provided nearly $1 Million in reserve for the Asso-ciation thereby eliminating the need for a special assessments.
Results From the Converstion of 109 Lefferts
Value as a Cooperative (40% Increase) | $32,000 |
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Add: Obligation (Fees & Closing Costs) | $33,000 |
Total Investment | $65,000 |
Condominium Values after Conversion | $168,000 |
Net Increase in Wealth (Equity) | $103,000 |