Figueroa Arms Condominiums
75-unit Los Angeles conversion
75
Total Units
Significant
Value Increase
N/A
Year Converted
CA
State
Property Details
Unit Types
N/A
Year Built
1925
Underlying Mortgage
Yes - three mortgages + unpaid property taxes
The Transformation
From Challenges to Success
Before Conversion
The Challenges
Unit values were 1/2 or less than they were at the market height with some owners being up-side-down with their mortgage vs market value of the units. Some owners were forced into foreclosure, further reducing unit values.
There were no lenders that were willing to finance new purchasers or refinance existing member loans. Units sold all cash at depressed prices.
Years of unpaid property taxes, deficit spending and three mortgages had the co-op facing foreclosure.
Unit values were 50% or less than they were at the market height as then owners up-side-down with their mortgage exceeding market value of the units. Vacancies and lease abandonments were spiraling out of control, further constraining cash flow for operations.
After Conversion
The Results
The conversion created immediate market acceptance and lift prices by at least 100%. Owners who wanted to sell can now afford to payoff their loans thereby reducing the foreclosures in the building and increasing unit prices.
As condos, units now qualify for loans with unlimited lenders. Fannie Mae project approval will provide the best terms and support higher unit values.
Hutton arranged a new Group Loan for the condominium HOA that paid off all obligations and left cash for reserves.
Through conversion, management re-alignment, and re-marketing, Hutton created immediate market acceptance and increased values by 50%-100%.The equity bump prevented foreclosure. Improvements in common areas and units contributed to value appreciation.
Financial Impact
Financial Impact
Results shown are from a representative unit. Individual results vary by unit size and condition.
Property Location
Figueroa Arms Condominiums
4125 S Figueroa Street, Los Angeles, CA 90037
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