generally there’s two different ways a

section 15d conversion will come to

fruition one is

you have

a prospective buyer developer

institutional investor that wants to get

into the market

and they don’t want to build something

new they don’t want to get involved in

new construction permitting so on and so

forth so they hire a broker

and the broker scours the market for

potential condominium buildings in the

unit count the unit mix the geographic

neighborhood that the investor wants to

be in and they basically send out a

bunch of solicit solicitation offers to

the condominium board

asking the condominium board if they

would consider

a section 15d conversion of the building

and consider recommending a section 15d

conversion to the unit owners that live

in that building so that’s one way that

these come to fruition another way is

unit owners in a condominium building

find out that section 15 exists

and they collectively figure out that if

they all sell their units and bundle the

property

as

essentially an apartment building sale

there’s probably a market out there that

otherwise wouldn’t exist and that market

is likely to pay

an incrementally higher price for their

unit

in order to have the ease of knowing

they’re not going to have to spend a lot

of money in pursuit costs in legal and

getting control of a various or given

building

and so

you know there’s various ways that an

hoa or a condominium association could

market

their building to a developer so let’s

just say you had again you had 100

units in a condominium building

and 75 of the unit owners said yeah

we’re game we want to sell let’s go find

a buyer

not only could they

hire a broker

and advertise their building for sale

but they could probably also

bring along with it

lease back tenants in the building in

other words once the units are sold

where are the

occupants going to go they still have to

live somewhere and assuming that the

institutional or other buyer is buying

the building as an investment they plan

on renting out the units as apartments

and so

if you’re a condominium association and

you bring

75 tenants

to the buyer in addition to

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consent of 75 percent of the unit owners

you’re really packaging and marketing

something for sale

that a lot of buyers would like

in a market assuming that they’re

looking to buy

you know institutional grade

real estate rental property in in this

particular market