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August 18, 2009
Converting B'stone Into Condo
My family owns a 5 family brownstone in Bed Stuy. We would like to convert it into condos. Does anyone have any advice on how we should get started? What pitfalls should look out for in terms of taxes and conversion fees?
Comments
I would recommend contacting a real estate lawyer in the first instance. S/he will be able to advise of the necessary steps and give you an estimate of the costs.
Posted by: bohuma at August 18, 2009 8:51 AM
Definitely get an attorney that specializes in condo offering plans; but, first & foremost, get yourself an architect.
I used to work for a condo offering plan attorney & the developers were always able to get all of the necessary documents (12 or more), except for the narrative report & drawings, which comes from the architect. Being that we are in a current real estate downturn, architects may be more prompt with their projects but I don't think so.
With regards to taxes, unless you are applying for an abatement, the taxes are not imperative at this stage. When it comes to conversion fees, take note to be on the look-out for the following fees:
-Condo conversion fee (obvious)
-Amendment fee (each time you make a change to the offering plan; sit your family down & figure out what they want in the offering plan to avoid unnecessary fees; however, some amendments (i.e. declaring the plan effective) are inevitable so find out the cost of each to plan your budget accordingly)
-Condo declaration fee (ask your Architect/Engineer if they know how to do this because I ran across some situations when the developer did not tell the Architect/Engineer this had to be done & the Architect/Engineer slaps a surprising bill on them)
Also, you are going to need to pay the individuals that you obtain the necessary documents from. The amount depends on the individual. Your attorney, if he/she is good, should be able to tell you how much each cost, or may even be able to get a few of the documents for you (at a fee of course).
If you need help, let me know. I am looking for a part-time gig.
Good Luck.
Posted by: Miss Breukelen at August 18, 2009 9:27 AM
> Does anyone have any advice on how we should get started?
Step one: Acquire time machine and set the date to 2005.
Posted by: DitmasSnark at August 18, 2009 10:04 AM
Sorry, that snark was uncalled for.
Posted by: DitmasSnark at August 18, 2009 10:08 AM
Ditmas you are on point with that one. Talk about being three years too late. Rental property is much better idea right now in this market.
Posted by: Adam Dahill at August 18, 2009 10:20 AM
Clearly if the family seeks all the information now that they need for a conversion for condominiums, it will inform a discussion as to how a jointly owned asset can be divided among individual family members. If the family carries through with the conversion, then the family members can decide if and when they will cash in so to speak.
Posted by: BrooklynIsHome at August 18, 2009 11:02 AM
Hey there,
We did the same thing in Bed-Stuy and were glad we did, but it is a long, expensive, and maddening process. I agree first thing to do is get a lawyer. We used Marcus Attorneys on Ft. Greene and I would recommend them. Guillermo (Bill) Santiago was our guy (you can tell him Amy and Mike say hi) and he was helpful, though I did stay on top of things (which you should do with anyone) to keep it moving as everyone is busy and has lots of projects going on. A good architect is a must and preferably one that has experience with conversions. Bill recommended ours and he was by far the cheapest but not the best (we knew that going in), I can't say I recommend him, but we just had a really good experience with the architect Aaron McDonald (www.buildme.net) - I'd recommend calling him. All in all it probably cost us 50-60K to convert (including lawyer, architect, fees etc.) If you have to do any construction on top of that it could go way up from there. Hope that helps?
And because I can't help it (and please don't take this personally, it is years of seeing crappy work in Bed-Stuy), if you are going to sell these as condo's then please, please, please, consider who will be buying and build to their taste (read: people priced out of Park Slope, Ft. Greene etc looking for a lovely home). The last thing bed-stuy needs is another crappy remodel posing as nice. Instead, MAKE it nice, and if your taste isn't what you are seeing in brownstone condos in PS and FG then find someone to help you who does have that taste (and listen to them). Lastly, please don't try to cram too much into a small space. If the space wants to be a one bedroom one bath then make it a one bedroom one bath - don't think adding another bedroom or bath will help you get a higher price, it won't. It will just mean you have a hard time selling and you'll end up losing money in the end... I guess what I'm saying is that if you create the space with integrity and consideration it will pay you back many times over. Sorry if all that sounded preachy, but I think that is what allowed us to sell all four of our condos on the first day we showed them, and I'd love for you to have the same experience. Good luck!
Posted by: amybnyc at August 18, 2009 11:29 AM
Hey again,
I just noticed this came from Ibointeriors... if this is the woman whose name I won't write here who had Ibo Landing and helped us with paint colors, tile, interior design etc. on our condo conversion than please let me know and I'd be happy to share any more details with you etc. I can give you a call if you don't still have my number. And if it is you I feel way better about you doing a conversion - you'll make it lovely. :)
Posted by: amybnyc at August 18, 2009 11:33 AM
Although we ended up not doing a conversion, I would second Marcus Attys in Fort Greene--very easy to work with and knowledgeable on this topic.
Posted by: tinarina at August 18, 2009 12:31 PM
call harold gruber for a condo lawyer, 718 788 7722. he will be cheaper and he knows what he is doing
Posted by: rich1 at August 18, 2009 1:45 PM
Amy, Which building did you convert? Are all the units sold? Do you guys live in the building?
Posted by: housebywe at August 18, 2009 8:35 PM
I know some great architects in the ft. green / clinton hill / bed sty hoods. Feel free to email me if you want more info. tmartin@wedesign-nyc.com
Posted by: triciaely at August 27, 2009 10:03 PM
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