How We're Finding Value in Aging Assets in 2026
November 24, 2025
30 West 90th Street
Hello,
For the avid real estate developer or investor, any unlocked value is an itch, and it goes beyond profit-seeking — it’s a challenge, almost a mission.
While easy transactions can be enjoyable, the satisfaction of putting a complex deal together is unmatched.
Cooperative (a.k.a. co-op) conversion is a complex real estate transaction, but given the huge discrepancy in prices between co-ops and
condos — which often vary only by their legal definition, are located on the same block, and house similar types of apartments — we
decided to take a closer look:
First, I am looking at the gap between a few random examples I picked of condos and co-ops side by side (excluding new construction).
Secondly, I'll briefly outline all the “ifs” (conditions) that have to be met in order to convert a co-op.
And lastly, we’ll highlight additional possible perks that could be found.
The Gap:
Condo vs. Neighboring Co-op - Price per Square Foot Comparison
Condo Building |
Condo PSF |
Neighboring Co-op |
Co-op PSF |
|---|---|---|---|
225 West 86th (The Belnord) |
~$2,300 |
160 West 87th |
~$865 |
443 Greenwich |
~$4,430 |
465 Greenwich |
~$2,000 |
40 East 72nd |
~$3,134 |
114 East 72nd |
~$1,394 |
182 West 82nd |
~$3,212 |
139 East 82nd |
~$1,333 |
* Co-op sizes are an approximation.
The Conversion:
If you were able to identify a co-op with:
• Upside in the price
• Sponsor shares, or units from multiple owners you can purchase
• Strong shareholder support for a conversion
and...
If you can identify a bank to refinance the underlying mortgage and shareholders’ units
and...
If the property is up to code, or can be brought up to code in a straightforward manner
Then:
You have a proper candidate, and you can move to prepare and submit an offering plan.
Additional Perks:
In addition, you can capitalize on additional air rights, roof rights, extra sellable square footage, and storage spaces, if there are any available.
Condop could be an option in difficult scenarios, especially those pertaining to a land-lease or majority vote; otherwise, if the process commences, the highest and best value would still be a condominium.
This is, of course, a simplification of a longer process (there are also tax implications, possibly some equity will be needed, dealing with a reluctant few shareholders, and more).
However, while I was researching the topic for such a possible conversion, I spoke with one of our clients who has successfully converted a 100-unit co-op to a condominium in queens. His view on it is that as long as you have the proper ingredients, it is not very complicated.
The last conversion from co-op to condo in Manhattan, took place in 1998, when Beechmont Investment Company converted 30 West 90th Street, a 47-unit co-op, to a condominium.
Yet, the dwindling number of opportunities, lack of prime locations for developments, and high cost of existing assets, may present the patient investor with a very unusual play.
Wishing you a Happy Thanksgiving!
Ariel and the team
