Bensonhurst co-op converted to condo

September 20, 2011 04:18PM

Residential Ownership Alternatives Hutton has converted a 59-unit Brooklyn
co-op at 1543 West 1st Street in Bensonhurst into a
condominium, according to a statement released today. According to
Hutton, unit values have jumped overnight from as low as $160,000 for
a one-bedroom unit to $255,000 when appraised as a condo.

“Every unit in the building is now a condominium and qualifies for
Fannie Mae financing,” Jack Boyajian, president of ROA Hutton and the
Hutton Group, said in the statement.

As a co-op, the building had been suffering from declining prices in a
market that was appreciating for condos, according to the statement, as
co-op unit prices were much lower than a few years ago and financing
options were limited and expensive.

“Our owners in the building wanted to have the deeds to their units
and own real estate rather than shares in a corporation,” said Sofya
Golkhovaya, the board’s president. After Hutton provided each owner with
their comparative assessment of co-op versus condo ownership, the
shareholders voted overwhelmingly to convert their interests to
condominiums.

The completion of the conversion was delayed several times due to
unexpected changes in the mortgage market and the regulatory landscape
created through the Dodd-Frank Act, according to the statement.

The participating owners are also saving money every month after
converting to a condo. “With pre-planning suggested by Jack
Boyajian, the building has the extra money required to complete
necessary repairs to our elevator as well as put some additional funds
into our reserves,” said Rimma Drel, the board secretary.

Hutton has also so far managed the conversion of two other co-ops in
Queens in 2007 109-18 at the Lefferts Condominium and again in 2008, at the Delmar
Condominium in Forest Hills. “While we have converted thousands of
units throughout the country, it is particularly satisfying to create
equity and value in another community here in New York where co-ops
are prevalent,” Boyajian said. “It is an important trend that other
co-ops will have to consider as part of their strategy to respond to
current market conditions.” Hutton has been responsible for converting
thousands of units in in New York, New Jersey and Florida as well as other states since 1992. — Miranda
Neubauer