Finnish Coops
Hi. I’m looking for a better understanding of how a Finnish Coop works. Why are the prices well below market? Why are some cash only? What does all this mean when you want to sell your unit? How is the selling price established? Have searched all over the Internets and on Brownstoner — finding virtually…
Hi. I’m looking for a better understanding of how a Finnish Coop works. Why are the prices well below market? Why are some cash only? What does all this mean when you want to sell your unit? How is the selling price established? Have searched all over the Internets and on Brownstoner — finding virtually nothing.
Ask Kensingtonian. His friend lives in one of the coops.
As far as I know, the price is established by the seller. The low prices are the result of the all-cash requirement. The all-cash requirement is because some of those coops have an ownership structure that is different from the “normal” coops in NYC (don’t know more details, ask Kens), so the banks don’t lend money for them.
Some of the original Finnish coops have hired lawyers to “upgrade” the ownership situation, issue shares, etc., so now it’s possible to get a mortgage to buy in those buildings – the apartments there cost more.
ilovebrooklyn, I don’t know the names of any Finnish Coops (there are several in Brooklyn — all in Sunset Park? not sure), but I believe they were established in the 1920’s, around the time other famous “workers” coops were established like The Amalgamated and “The Coops” up in the Bronx.
Thanks, babs! That is more than I could find in all of my searches combined.
But do you know who actually establishes the selling price? Is it the board (or whatever the governing body is called) as opposed to the individual owner?
I’ve never heard of them either. What are some examples in NYC?
never heard of them! fascinating!
The Finnish co-ops were among the earliest co-ops in all of NYC, mirrored on a structure common in Finland and other Scandinavian countries. They are notable for their very conservative financial management, which in some cases includes members not being allowed to take out mortgages (hence the all-cash nature of some of them). They very rarely come on the market (many are sold by word-of-mouth to friends of residents). The low selling price reflects the all-cash requirements and/or the very strict co-op approval requirements, which eliminates many potential buyers.
I hope I get one answer here today .. . .