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Urban Standard Capital Launches Platform to Buy Condo Units
Urban Standard Capital (USC), announced the formal launch of a $100-million investment platform to buy condominium units from developers/owners who need to hit the 15% sales threshold to effectuate condo conversions.
Initially earmarked for New York City properties, the platform would buy enough units at a market discount to enable the sponsor to meet the 15% sales threshold needed for condo conversion and then rent out remaining units until the market recovers.
A 2018 change to New York State’s condo conversion laws stipulated that sponsors need 51% of a property’s occupants to buy their apartments before an occupied rental can be converted into condos. “This change makes converting an occupied rental practically impossible,” said Seth Weissman, founder of USC. “Our platform provides a solution to sponsors who need to generate cash flow today and want to maintain optionality to sell units at higher prices in the future.”
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