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Lincoln Towers Info – Sponsor Apartments

ust before the eight Lincoln Towers buildings converted to cooperative ownership, all of its residents were rent stabilized tenants. The buildings were converted pursuant to what was called a non-eviction plan of conversion, which meant that none of the existing renters were required to buy or vacate their apartments, as they would have had to do in an eviction plan. Rather, those tenants were assured that they could remain as rent stabilized tenants for the rest of their lives.

The Sponsor of the conversion was a limited partnership whose general partners were The Equitable Life Assurance Society of the United States, Mendik Realty Company, Inc., and two individuals. As of May 1, 1987, the conversion date for all eight buildings, 53% of the apartment units were sold; 47% of the tenants chose to remain as renters. The Sponsor continued to own all of the apartments which were not sold, and became the landlord to those individuals who resided in them. The tenants paid the legally regulated rent stabilized rent to the Sponsor. The Sponsor, however, paid the maintenance imposed by the cooperative corporation for each of those apartments. The maintenance charge the Sponsor paid to the co-op corporation was often higher than the rental the Sponsor received from the rent stabilized tenant.

In April, 1993, the original Sponsor sold all of its interest in the unsold apartments at Lincoln Towers to ACP Realty Group (ACP), which became the Holder of Unsold Shares, and which stepped into the position formally held by the Sponsor. Since ACP now owns all of the unsold apartments, most people continue to refer to it as the Sponsor, though that designation is technically incorrect. Almost 90% of the units at Lincoln Towers are now owned by individual residents; 10-11% continue to be occupied by rent stabilized tenants, who now pay their rent to ACP.

As the rent stabilized apartments are vacated, ACP puts them on the market for sale, through its sales office and through licensed real estate brokers. These apartments are often renovated before closing, and, because they are being sold for the first time, do not require Board approval.

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