Co-ops ease restrictions on LLCs

New York /
Apr.April 10, 2012 01:30 PM

Co-ops are finally descending from their perch above the reality of the New York City real estate industry and are reducing restrictions on buyers into their tightly held communities. According to Habitat magazine, more co-ops are reversing previous policies and allowing LLCs and family estates to buy units in buildings in an effort to remain attractive to buyers as the price of real estate soars in the city.

In the past, co-ops resisted those ownership structures for two reasons: a corporate buyer might use it as a pied-a-terre and diminish the sense of communtiy the co-op covets, and the entities are harder to hold responsible for unpaid maintenance or damage fees.

But as the price of co-ops has grown 89 percent in the last decade, the type of buyers snapping up co-op shares has changed. They are often celebrities or other people who possess enormous wealth and want anonymity and can benefit from a reduced risk of a residency audit for tax purposes. Still, the co-op boards often require a point person for an entity who can be immediately contacted in the case of damages or unpaid fees.

“It’s a reflection of the changing times,” said Siim Hanja, a senior vice president at Brown Harris Stevens. “It’s not another artist who moves in when someone retires and moves upstate. It’s someone from Italy with $100 million net worth.” [Habitat Mag]


Related Articles

arrow_forward_ios
85 Jay Street in Dumbo and 515 West 29th Street in Chelsea (Photos via Winick, SCDA Architects)
Here are the new developments offering the most buyer incentives
Here are the new developments offering the most buyer incentives
Assemblyman N. Nick Perry and Sen. Brian Kavanagh (Getty, iStock, NY State Assembly)
New bill would force co-op boards to explain rejections
New bill would force co-op boards to explain rejections
James Whelan, Stuart Saft and Senator Liz Krueger (Whelan by Evan Gutierrez, Kruger via NY Senate, iStock) 
Legislators accidentally propose huge tax hike for co-ops
Legislators accidentally propose huge tax hike for co-ops
328 Sackett Street was the most expensive property this week. (Elliman)
Brooklyn luxury condo contracts catch up to townhouses
Brooklyn luxury condo contracts catch up to townhouses
(Getty, iStock/Illustration by Alexis Manrodt for The Real Deal)
Condo, co-op boards mull vaccine mandates for building workers
Condo, co-op boards mull vaccine mandates for building workers
17 West 54th Street and Stuart Froum (Google Maps, Linkedin)
Renovation of stately co-op pits gum surgeon against board
Renovation of stately co-op pits gum surgeon against board
Guo Wengui and the Sherry-Netherland penthouse at 781 Fifth Avenue (Photos via Wikipedia Commons; Getty Images and Douglas Elliman)
Ensconced in the penthouse and entangled in lawsuits
Ensconced in the penthouse and entangled in lawsuits
(iStock)
Manhattan home sales experience record decline
Manhattan home sales experience record decline
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...