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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (30152)	4/26/2005 4:21:47 PM
From: Elroy Jetson	Respond to of 306849

Don Sterling owns roughly 100 apartment buildings, but they're unlikely to become condos. During the conversion craze of the 1980s, California and Los Angeles County significantly tightened up on construction codes for condominiums. Converting apartment not built to the construction code for condominiums is just too costly. Conversion is still possible. Pardee Homes builds condominiums and rents them out as apartments until a downturn in housing occurs. When their sales drop, their file the conversion papers with the state and offer to sell the condo to the current renter for 75% of appraised value. Usually about 2/3 buy and 1/3 move on. This is Pardee's "cookie jar" which they use to maintain their long history of continuous annual increases in both sales and profits. .