Swig Equities acquired 112 residential units within this 198 unit residential co-op building located at the corner of 89th Street and First Avenue on Manhattan’s Upper East Side. At the time, the building was in bankruptcy and the acquisition included the successful negotiation to purchase the outstanding debt from three disparate banking groups located in Texas, Iowa and Japan. Upon restructuring the debt with the bankrupt co-op corporation, the SwigEquities received 112 cooperative apartments in exchange for discounting the outstanding principal balance of the loan.
After closing the loan acquisition and restructuring, the building emerged from bankruptcy with control of the co-op board going to SwigEquities. A full building wide renovation program was initiated which included all tenant common corridors, tenant laundry rooms, refurbishment of elevator cabs, repointing of the exterior façade, installation of a new roof, and renovation of the main lobby.
Simultaneously, 37 vacant apartments were gut renovated to include new bathrooms, kitchens, hardwood floors, new mechanicals, plumbing and electric wiring. Upon completion, these units were sold on an individual basis at a tremendous profit.
In addition, the building was converted from co-operative to condominium status with the flexibility to choose between the two forms of ownership resting with each individual unit owner. This was the first such co-op to condominium conversion to occur in New York City.
Finally, a long term mortgage was secured for the building which allowed for individual unit owners to maintain their option to remain a co-op or convert to condominium status.