Manhattan Condos - New Developments - Conversions - Resales

What is a Condop?

What is a Manhattan Condop ?

A condop is a residential building or portion that includes cooperative and condominium ownership structure. The condominium has a residential cooperative unit separate from the commercial unit and or garage unit. During the late 1980's several new developments were built as "condops" they were "hybrids" because the developer had an underlying mortgage on the residential portion of the project. The residential unit is legally a cooperative. Owners are shareholders in a corporation.

The Boulevard 2373 Broaway

A condo can not have an underlying mortgage. I was an original owner/shareholder in one of the first luxury condops constructed on Broadway on the upper west side.

I often get calls from other brokers about The Boulevard since I'm a resident broker that sells there. Many agents think a condop is a coop with condo rules. In many condop buildings that is true but the rules have nothing to do with what makes the building a condop.

Prior to the Bush tax cuts coops were only allowed to receive 20% income/revenue from non maintenance. The retail/commercial revenue could only be 20% of the building's income. Some developments and conversions may have been structured as condops for tax purposes.

The 80/20% IRS rule no longer applies to coops but today there are still new condops. In new construction, in the offering plan, if the developer/sponsor leaves the purchasers/ shareholders/owners with an underlying mortgage the building is usually a condop. The underlying mortgage is included in the maintenance allocated proportionally to each apartment sold as shares.

New construction condops include The Azure and 1 Carnegie Hill on the Upper East Side and 305 West 16th street, a brand new luxury designer condop building in Chelsea and there is a new condop in Harlem.

Many condops have right of 1st refusal, they are investor friendly and have the same unlimited sublet policy and amenities usually found in condos.

The Savanah, 250 West 89th Street

 

A condop can offer the best of both worlds. It can offer rules and amenities of a condo, tax deduction, lower closing costs (no NY state mortgage recording tax) like a coop because a coop is not considered "real property" it is considered "personal property." Condops are usually valued in between a coop and a condo.

There is an advantage to buying a condop if you can find one in the neighborhood and price range you require.

 

 

 

Contact me to purchase or sell in The Boulevard, The Savannah or any other Manhattan condop, coop, condo or new development.

 

courtesy of:

Mitchell Hall, Associate Broker

The Corcoran Group

Condos and Condops on Upper Broadway

 
   

________________

©Mitchell Hall 2006-2016

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Blogging about Manhattan Real Estate since 2006

Mitchell Hall (Licensed as Mitchell J Hall)

Licensed Associate Real Estate Broker
Office (212) 877-6268 | iPhone (917) 312-0924
MHALL@Corcoran.com

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Comment balloon 20 commentsMitchell J Hall • September 20 2011 10:10AM
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