Townhouses Sold as a Coop

is it cooped with other townhouses or just the units that are in it?

i would kill the coop if i'm buying all the shares and want to live there myself and not flip it.

Just a coop of units in the same building.

Accountat informed me that if you eliminate the coop's corporation you incur the capital gains at the corporate level which is 35%.

I know the building. Tax & financing issues. Tax issue as you described. Financing issues - if >3 units, you might have to get a commercial mtge. If you don't dissolve the co-op corp, you don't enjoy the benefits of single-family tax rate (and cap - cap is more important).

BTW, if you're looking for a gut-job, vacant family in the low 3s, high 2s, you might consider buying a much larger property with rent-stabilized tenants and going the eviction route.

I'm not clear on what this refers to:

Did a few shareholders vote basically to implode their co-op by selling its entire assets to another buyer? I'd expect that to sell for a premium, not a discount.

Or is it something else?

I think one shareholder owns all the shares. If you google, you'll find examples of (different) shareholders selling out their shares to a developer in Manhattan (a famous example was a single-lady-co-op in the Beekman area).

A family owns all the shares to the townhouse and they rent it out, currently has multiple tenants with month-to-month leases. Now looking to sell the building so they are selling all the shares.

AH: There may or may not be a discount. Depends on if the sum is greater than the whole. In the past, the sum has been greater than the whole, but maybe not in this case. If it's a single-shareholder scenario, banks don't like to lend if they were to try to sell separate components.

This sounds really complicated. I would talk to a broker with some expertise in townhouses -- maybe Bill Marshall or Anne Snee at Corcoran?

ali r.
DG Neary Realty

I don't think OP should talk to the likes of Anne Snee - she's more of an end-user product TH person.

Talk to:
1) Dexter Guerreri (of Vanderberg)
2) Paul Knadbeck (sp?) of Massey Knakal
3) Wolf J of BHS

FWIW, all of them may have had a hand in the listing at some point so I don't know how much they can disclose.

Its listed with Vanderberg.....

FWIW, the market is quite efficient at pricing non-ideal TH situations I know that this fact doesn't help you when you want to bid on something.

I would assume this is a gut job (new mechanicals, new plumbing stacks, reconfig fplan, some preservation of details, all new fixtures, blabla) so ballpark (ballpark!) you're looking at 300/sqft minimum for reno costs if you are NOT GCing the job yourself.

And if you take on something like this, where you're taking it down to a sub-4 family TH, it's well worth it to do the barest minimum possible to get the new C of O and then get reassessed on taxes before embarking on the larger renovation. I can't guarantee a tax savings, but worth a try.

Ask James Gandolfini about how he feels about it after going thru it with 138 West 13th St when he tried to purchase it from Uma Thurman and Ethan Hawke 9who had first bought the every large triplex and then the other 2 units in the Coop). The irony (and me showing off here) is that when it first came on the market, at the Broker's Open house I specifically asked the listing broker if it was being offered as all the shares in the Coop or as Real Estate, and didn't get an answer - and it ended up being a big issue later.