Mountain Club Condos
702-unit Morris Plains conversion
702
Total Units
Significant
Value Increase
N/A
Year Converted
NJ
State
Property Details
Unit Types
N/A
Year Built
1968
Underlying Mortgage
Yes (Underlying Mortgage, Fees & Closing Cost)
The Transformation
From Challenges to Success
Before Conversion
The Challenges
A large complex (702 Units) converted from rentals in 1988, the co-op units never recovered in sales prices from the decline in the early 1990s. Owners were forced to rent due to low resale values, making the community more tenant-concentrated than was desired.
As a co-op, owners were limited in their options to refinance or get home equity loans since unit values remained low compared to the loan amount they needed.
There was significant deferred maintenance in the complex and virtually no reserves to fund the necessary work.
After Conversion
The Results
After conversion, unit values doubled and market absorption significantly improved. Investor owners were able to sell their units to owner-occupants at higher prices thereby increasing the owner occupancy levels in the community.
As part of the conversion, Hutton secured Fannie Mae & FHA approval which provided the best available mortgage terms for years to come.
Almost $2.5 Million was raised through the conversion, allowing owners to borrow their share in conversion loans.
Financial Impact
Financial Impact
Results shown are from a representative unit. Individual results vary by unit size and condition.
Property Location
Mountain Club Condos
2467 NJ-10, Morris Plains, NJ 07950
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