My building is being converted to condos

As long as it's not being converted to a Coop then I'd continue to explore.
Condo's tend to be new developments though.

If it's a going to be a Coop either run as fast as you can or stay as a renter so that you still have renters rights. Coop owners are really just renters with no rights or advocates.
Unless, of course the sponsor is going to give you an insiders price bribe like they were doing in the 80's early 90's. Then you can "flip" your apartment and make a lot of money fast. Pass the coop scheme onto someone else.

But would that be ethical...?

:)

First of all, why would it not be ethical. The LL got the price at which he was willing to make the transaction, else he would not have offered it.

2nd, of course old construction converts to condo. It probably would have happened in the 80's too except that going co-op had a lot of tax benefits for the owner at the time it happened. (you will see that co-op conversions dropped like a rock when the tax benefits ended.) Look at 845 WEA, 905 WEA, etc.

Also, look up conversions here in the files. West81st wrote a lot about it I think a couple years back.

The answer is usually simple. Unless you are getting a great insider price, buying the condo would be the same as buying a condo elsewhere and you should shop and compare. I think few current tenants end up buying in a condo conversion.

Also, if you are not a stabilized tenant they might kick you out if you don't buy.

Make sure the price is a a discount to market and takes into consideration the state of your apartment, especially if it will not get upgraded. In all liklihood insiders buy their apartment as is with an option to upgrade.

There's a story in today's paper about condo conversions.

http://www.nytimes.com/2010/07/11/realestate/11cov.html

Octaboy, see http://www.ag.ny.gov/publications/COOP%20CONDO%20Conversion%20Handbook%202-13-08.pdf

Thanks all,

Via the gossip mill, the building is going condo. I am a rent stabilized tenant with a modest nest egg. Hope to have 100k socked away by the time the units are offered for sale (approximately three years.)

My building is a class A hotel so lots of rent stabilized tenants.

A 1BR qith 1100/sf might be too rich for my blood but will save my pennies and hope for a discount that will make the purchase price within reach.

O

Or negotiate a buyout, and use the funds to buy in a less expensive neighborhood ... but keep in mind that the price will be taxable as ordinary income.

Get ready for years of construction. If you can't handle that then take the buyout and move on with your life.
If you can handle the construction then stay as long as you want and when you're ready to leave (if ever) then get a buyout then.

If you can handle the payments on your current place at the sale price but don't have the downpayment, you could always take the buyout and use it for the downpayment on a similar place elsewhere.

That is why insider prices exist in the first place. That you might be there for an indefinite # of decades at a RS price is something the sponsor would rather not have.

Be prepared to have to put a decemt amount down if you are among the early buyers. New Fannie Mae guidelines are a real pain if the sponsor owns more than 10% of the apartments...even if it's not new construction.

Long time RC/RS tenants may be paying significantly less in rent than the monthly maintenance costs of the apartment after conversion. Its a great negotiating tool, so find out what the maintenance on your apartment will be and see if the sponsor loses money every month you stay as a rental tenant. If that's the case you will do really well if you want to purchase.

The sale of the building has been reported in the press. Thanks again to all who offered advice. As an update, the tenants of the building (especially the RS) are pretty nervous about the sale. Most people are freaking out about the possibility of getting kicked out either legally or otherwise.

Should be an interesting ride.....

O

http://www.cityrealty.com/new-york-city-real-estate/carters-view/gluck-azogui-reportedly-buy-666-west-end-avenue-72-million/33222

At least the building has "consistent fenestration".

Get yourself a lawyer to represent the renters, and also to negotiate a good buyout deal as the insider group.

Do not trust anything the sponsor says or puts in the offering plan. Make sure they are on the hook to fix/replace anything that needs fixing.

Expect your real estate taxes to be very high - do not trust their estimates in the plan.

and yes, be prepared for lots of construction - and you should be compensated for living with that (as a buyer).