Converting to condo in Union City, NJ?

Question

I've been eyeing a particular 3 unit multifamily in Union City for a while, to by as an investment. The idea was to upgrade the units significantly and raise the rents, then possibly sell once stable. Alas - the new ordinance turned this property too into a rent stabilized one. I'm now considering buying and converting the units to condos. Does anyone have experience with converting to condos in Union City?  What is the process like? How long did it take? How much did you wind up spending in attorney fees, etc? Any bit if info would help. Thank you!

Tania Patch · Answer

I can't tell you how long a conversion process will take, but I can tell you that their building department is not fun. I still don't have permits after a fire and things were submitted in March for applications. They take weeks reviewing things and won't call you or tell you when they have reviewed things so you are constantly calling and then waiting for them to find your file. When my contractor went without me they kept him waiting over 2 hours then told him something completely inaccurate and they take no accountability for how they can literally destroy peoples lives and finances. Took me 40 days to get the one permit to gut that I have so far. All the others I am still waiting. So if you decide to do something there, know it won't be easy.

Stefan Tsvetkov · Answer

@Ivan Shao There may be an "arbitrage" between the multifamily price and its individual condo components if the former gets condo-ed out. This would not necessarily be the case, or the spread could go the other way, though such motive could present one reason for conversion.

I am not even sure if rent control gets eliminated through a possible condo conversion in most towns in Hudson County - West New York, for  base condominium rent > $1000, is one exception, it seems valuable to determine the others.

Stefan Tsvetkov · Answer

Note the below bill was proposed, establishing a 5-year  moratorium on condo conversions in high population/population density counties (basically Hudson County only). The bill was pocket veto-ed last month by the Senate President as its sponsors retracted due to its scope (Hudson County) having gone beyond the sponsors' original intent (seemingly Union City only). The bill was lead sponsored by Union City Mayor (and NJ Senator) Brian P. Stack, a fact which should come as little surprise :) An eventual future bill now seems likely to prohibit conversions in Union City alone.

Condo Conversion Bill impacting Hudson County

Condo Conversion Bill Pocket Vetoed by Senate President

Zhong Zhang · Answer

Hey Stefan, I wonder have you finished the conversion. I am considering doing the same thing but in Hoboken area. Really appreciate if you can share your experience of conversion. Also if there is any attorney in this area you highly recommend, please let me know

Ivan Shao · Answer

@Stefan Tsvetkov If condo conversation can't decontrol the rent control building, what other purpose or benefits to convert?  I went into the same thought today as I also have a four families at Union City then I found this post.

Christian Torres · Answer

The State of New Jersey has just passed a bill that would ban the conversion to condos for all housing only in Hudson County. This could be a big blow to 2 & 3 family homes in the area.

https://njbiz.com/lame-duck-bill-hudson-county-condo-conversion-ban/

Jill McLoughlin · Answer

I saw this while doing some research...This may help.https://www.lsnjlaw.org/Housing/Landlord-Tenant/Condo-Conversions/Pages/Condominium-Cooperative-Conversions.aspx

Tom Wagner · Answer

Anyone else have thoughts on this? Looking at the same thing and while there was good discussion re: rent control, which can be found here -- http://www.ucnj.com/web_content/pdf/ordinances/Rent-Stabilization-Ordinance-2017.pdf, no one answered the original question re: condo conversion.

Mia Shlomit · Answer

Thanks Vanessa! much appreciated.

Stefan Tsvetkov · Answer

@Mia Shlomit Does the intended condo conversion aim to eliminate rent control for the building or another purpose? If the former, note per Union City Rent Stabilization ordinance (https://ecode360.com/15397000 is a slightly outdated version), "the terms of this chapter apply to individual dwelling units within a building, including condominium or cooperative units in the process of being converted, or having been converted". I do not believe converting to condos would decontrol the building.

I own a 4-unit multifamily in Union City and am considering condo converting it at some point in the future, though I do not think rent decontrol would be among the potential benefits of the conversion. Best call the town's rent control office and make a general inquiry to confirm.

Converting to condo in Union City, NJ?

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