What are the Benefits of Converting Properties into Condominiums?
I recently had a conversation with an individual who serves on the board of directors of a co-operative. This director and his board had been approached by a developer who was interested in converting their co-operative into a condominium, and his simple question was “What are the benefits to us if we convert?”
Many co-operatives are considering converting to a condominium for a multitude of reasons. Conversion can offer increased resale ability of the units, the ability to obtain financing more easily, as well as to come within the condominium statutes and laws which are, in many instances, better suited to community association development then landlord tenant law is as it relates to co-operatives.
In addition to co-operatives, developers are interested in converting marinas, industrial parks, parking garages, old warehouses (i.e., “lofts”), apartment buildings, as well as mobile home parks just to name a few of the ever increasing real estate properties which are being transformed from a leasing situation to fee ownership in the form of a condominium. The owners of these various types of properties now find it financially feasible to convert them into condominiums.
In short, there is a substantial movement not only in Michigan but around the country towards conversions of various real properties into condominium units with the intended benefits of condominium development and operation. Of course the owners of these properties should retain an experienced condominium attorney before considering the conversion process to insure that it is done in a proper fashion which will maximize the benefits to the members of the properties.