Restrictions on Condominium Conversions

By: Michael Polentz

While the condo demand is high, it is especially so for condo conversions, since transforming an existing structure to individual condos is cheaper, quicker and generally less risky than building one from the ground up. A condominium conversion is the process whereby a piece of rental property, such as an existing apartment building, hotel or commercial property, is transformed from a property wholly owned by a single title holder to individual units put up for sale to the public.  Aside from the product demand, attractive economic incentives are also driving land owner and developer-converters towards the condo conversion market. Conversions have been cited as a way for owners to turn a substantial profit. For developers, a conversion represents the opportunity to turn a quick profit, since the aggregate value of individual for-sale units far exceeds the value of the property when it is placed for sale as an apartment building.

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pursuant to New York DR 2-101(f)

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