Back HomeRise of Condo Conversions
As people are turning to Manhattan as a market for investments, landlords are considering the conversion of their rental properties to condominiums. This gives the landlord the opportunity to cash in on the asset and for the prospective buyer to consider an investment in the real estate market (2).
Both current rentals and commercial property landlords are looking into condo conversion. In Gramercy, Cabrini Medical Center, a hospital that has been vacant since 2008, is now being converted into pre-war condos. These are said to be finished by end of year, complete with luxury amenities including a pool and private terraces (3). Other places around the area include the former Lying-In Hospital, a maternity ward on Second Avenue, which has morphed into Rutherford Place, a rental-turning-condominium” (3).
Photo via The New York Times
The first step to the conversion is to submit pricing applications to see if this is a project to further pursue (1). However, Starr Associates Attorney Shaun Pappas states that “testing the market was historically frowned upon because it’s non-binding, and you’re stirring up a pot when you’re not necessarily planning on moving forward with it” (1). So, unless the landlord is ready to commit, there could be the possibility of a lawsuit. Ronda Kaysen of the New York Times suggests that “the simplest route to owning a home might be to find one already for sale, make an offer and buy it” (2).
Written By Kylie Keller
(1) The Real Deal
(2) The New York Times
(3) The New York Times
