Becker & Poliakoff

Contemplating Condo Terminations with John Cadden of the Condominium Advisory Group

Contemplating Condo Terminations with John Cadden of the Condominium Advisory Group

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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 offer
  • What developers can offer to make it easier for elderly or disabled residents who may have to move
  • The respective roles of the board and association counsel during the termination process
  • What is a condominium deconversion and how common is it?
  • What market conditions favor condominiums versus rental buildings?
  • The biggest challenges associated with a condominium termination
  • Top tips for associations evaluating whether a termination and sale is right for them

About Take It To The Board

Think you know what community association life is all about? Think again. Residents must obey the rules, directors must follow the law, and managers must keep it all running smoothly. Take It To The Board explores the reality of life in a condominium, cooperative or homeowners’ association, what’s really involved in serving on its board, and how to maintain that ever-so-delicate balance of being legally compliant and community spirited. Leading community association attorney Donna DiMaggio Berger acknowledges the balancing act without losing her sense of humor as she talks with a variety of association leaders, experts, and vendors about the challenges and benefits of the community association lifestyle.

If you’ve got a question, Take It To The Board with Donna DiMaggio Berger – We Speak Condo & HOA!

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