The Enclave
2012
Fairlawn, Ohio
Property Information
| Location | Fairlawn, Ohio |
|---|---|
| Number of Units | 104 |
| Year Converted to Co-op | 2004 |
| Year Converted to Condo | 2012 |
Before Conversion as a Co-op
Owners who wanted to sell were unable to do so because of the cooperative form of ownership and the related monthly fees.
As a Co-op, owners could not refinance and take advantage of historically low interest rates since no lender was willing to finance Co-op shares.
The Co-op was bleeding from negative cash flow due to defaulting members not paying their fees.
After Conversion as a Condo
As part of the conversion, units were sold at top prices. Monthly common charges were reduced to levels of comparable condo units in the market.
Through conversion, Hutton was able to secure Fannie Mae approval and shareholders were able to finance their conversion with low interest rates that reduced their monthly costs.
Units are selling well as condominiums, thereby improving cash flow and monthly fee collections.
Results From the Converstion of 109 Lefferts
| Value as a Cooperative (40% Increase) | $80,000 |
|---|---|
| Add: Obligation (Fees & Closing Costs) | $5,600 |
| Total Investment | $85,600 |
| Condominium Values after Conversion | $120,000 |
| Net Increase in Wealth (Equity) | $34,400 |