COOP that owns retail floor

Maybe I'm dumb, but I have no idea what this means.

I think I remember an ad for a co-op like that. A small building in Tribeca, maybe.

The co-op's income from the retail space is so much that it covers all the operating costs and then some, so the shareholders don't pay maintenance. Instead, they get distributions of the co-op's profit.

There're probably wrinkles as to whether it's actually a residential co-op -- i.e. what kind of corporation it is -- which could affect financing, deductibility of share-loan interest, etc.

LIST of these types of co-ops/condos are in order..

There wouldn't be any condos, as their retail units are invariably owned by the sponsor or successor, who just pay their CCs and keep the profit.

I tried looking for co-ops, by searching for very low maintenance, but nothing comes up.

It'd be rare, anyway, as most have their retail space leased out long-term to somebody else who's making most of the profit. I guess most of those leases date back to when the IRS's 80/20 rule was in effect, so a co-op didn't have much choice about limiting retail income to 25% of maintenance. There probably were ways around that, but don't know how it was finagled.

I remember a few co-ops downtown that owned their retail space.

426-428 Broome
458 Broome

I think there was one on Warren & one on West Broadway/Spring somewhere.

Uptown, the Harmony (61W62) own their commercial space but cancelled out by huge mtge.

This might be the Warren St one: http://streeteasy.com/nyc/sale/189730-coop-56-warren-street-tribeca-new-york

That old listing says "income almost entirely offsets maintenance", while the currect listing just mentions low maintenance.

Reminded me of this one -- http://streeteasy.com/nyc/sale/630609-coop-325-lafayette-street-noho-new-york

No residential CofO though (yet... although they've been saying "soon!" for a while).

I looked at an aprtment on West Broadway, about 8-9 years ago. It was on a corner, don't remember which cross street, but above a cosmetics store. The rent more than covered maintenance (not by a huge amount) but (I was told) tax reasons prevented them from disbursing the excess cash to shareholders.

value it like an investment property: figure out the NOI & cap rate

>as most have their retail space leased out long-term to somebody else who's making most of the profit.

That's very true. My small coop has this very situation in year 30 of a 40 year sweetheart sponsor lease.
I imagine there are many 80s coops with similar situations.

Interesting. I didn't know a residential co-op can act just like a "real" corporation in distributing dividends! Is there any public record that one can search for to gain details of these leases? Say if we know the name of the business and the co-op that owns the space. Would it show up somewhere? Thanks.

actually there will be more of such coops soon, at least in manhattan

my coops and my friend's coop will soon be in the category, if either the rent or interest rate rises a bit (owning commercial units; have huge cash reserve, etc)