Shoreview Estates
2006
Shoreview, MN
Property Information
Location | Shoreview, MN |
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Number of Units | 72 |
Year Built | 1973 |
Year Converted to Condo | 2006 |
Before Conversion as a Co-op
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 as a Condo
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.
Results From the Converstion of 109 Lefferts
Value as a Cooperative (40% Increase) | $58,000 |
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Add: Obligation (Fees & Closing Costs) | $6,000 |
Total Investment | $64,00 |
Condominium Values after Conversion | $110,000 |
Net Increase in Wealth (Equity) | $46,000 |