Shoreview Estates
72-unit Shoreview conversion
72
Total Units
Significant
Value Increase
N/A
Year Converted
MN
State
Property Details
Unit Types
N/A
Year Built
1973
Underlying Mortgage
Yes (With Underlying Mortgage)
The Transformation
From Challenges to Success
Before Conversion
The Challenges
Located about 15 miles from St. Paul, MN, the co-op was home to many empty-nesters who gave little thought to the declining values of the units until they or their family members could not sell or refinance the units at any price.
Even with declining values, shareholders were asked to pay monthly fees to maintain the property and to meet payments on the underlying mortgage.
Seniors in the co-op had no opportunity to participate in reverse mortgages (not allowed for co-ops and no equity existed).
After Conversion
The Results
Immediately after the conversion, unit prices nearly doubled and the property was re-introduced as a value-based condominium with great conveniences like underground parking and storage space for owners.
Although unit values nearly doubled, total monthly payments (condo fees, taxes and individual mortgage vs. co-op fees) for owners stayed the same or went down after conversion.
The conversion opened the door for reverse mortgages and created the equity to allow owners to use this option.
Financial Impact
Financial Impact
Results shown are from a representative unit. Individual results vary by unit size and condition.
Property Location
Shoreview Estates
4045 Hodgson Rd, Shoreview, MN 55126
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Could your building see similar results?
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