Pittsfield Village (The Village)
2009
Ann Arbor, MI
Property Information
Location | Ann Arbor, MI |
---|---|
Number of Units | 422 |
Year Built | 1950 |
Year Converted to Condo | 2009 |
Before Conversion as a Co-op
The Co-op’s underlying (blanket) mortgage carried a high rate (almost 10%) and the financial markets made refinancing improbable.
Unit values dropped so low that owners were unable to sell without having to bring cash to closing.
No financing was available for purchase or refinancing of units.
After Conversion as a Condo
Under Hutton’s conversion plan, owners were able to lock in rates at 5%, reducing their monthly carrying costs by hundreds of dollars.
As part of the conversion, units appraised for almost 40% more as condos. 25 units sold immediately.
Hutton brought in two lenders who provided FHA & Fannie Mae loans, up to 96% loan-to-value.
Results From the Converstion of 109 Lefferts
Value as a Cooperative (40% Increase) | $52,000 |
---|---|
Add: Obligation (Fees & Closing Costs) | $4,500 |
Total Investment | $56,500 |
Condominium Values after Conversion | $73,000 |
Net Increase in Wealth (Equity) | $16,500 |