Contemplating Condo Terminations with John Cadden of the Condominium Advisory Group

Is your older, cash-strapped condominium or cooperative association contemplating a termination and/or sale to a developer? The once rare ideas of a termination and sale have now become much more common as community members struggle to maintain, repair and insure older buildings. Host Donna DiMaggio Berger and guest John Cadden, from the Condominium Advisory Group and co-founder of CF Capital Holdings, discuss terminations from beginning to end and what to expect throughout the process. They tackle the legal, financial, and psychological aspects of termination, the impact of inflation, interest rates, and insurance costs, and the finite lifespan of multifamily buildings.

 John's extensive experience in the commercial real estate and banking industries provides insight into the developer's perspective: what grabs their attention - is it an alluring location, the flexibility of zoning codes, and/or the promise of redevelopment possibilities? Donna and John discuss the ever-changing dynamics of the real estate market which bring opportunities - and challenges - including the challenges of dealing with investor owners and the need for clear communication channels to facilitate membership approval.

Donna and John also examine the vital role of the board plays in the termination process: should they remain neutral or passionate advocates for the deal? While providing practical advice for managers and boards, they look at the factors that would encourage a group of owners to consider soliciting offers. Be prepared to come away with valuable insights to guide your journey if a possible sale is in your future.

 

Conversation Highlights Include:

How a board can best determine the market value of their property How a board can best assess an offerWhat developers can offer to make it easier for elderly or disabled residents who may have to moveThe respective roles of the board and association counsel during the termination processWhat is a condominium deconversion and how common is it?What market conditions favor condominiums versus rental buildings?The biggest challenges associated with a condominium terminationTop tips for associations evaluating whether a termination and sale is right for them