Corporate Neighbors Are Discouraged

Courtesy of Peter Arkle

Prior to 2006, a wealthy individual could purchase a prewar cooperative after an in-depth meeting with the neighbors/board members, and have no one else find out about it.  But, since 2006 all co-op sales are required to be listed as public records.  However, individuals have a found a new way to keep these purchases a secret; the investors are asking co-ops to break certain rules, and allow them to buy shares under corporate entities.  Usually, co-ops do not allow this because it is harder to track down the owners for maintenance and other fees (which in some cases can be more than the mortgage payments).  Cooperatives also do not like losing wealthy clients, and that is why some of them are starting to make case by case exceptions. 

After the unfortunate passing of the law in 2006, cooperatives should try to loosen their rules on the corporate entities buying shares in their buildings.  First and foremost, they will obviously attract a larger pool of clients who are extremely concerned about their privacy.  Moreover, since a co-op behaves like a public corporation with the residents as the shareholders, it should only be important for the “shareholders” to know information about the other residents of the building.  Therefore, the co-ops should support their clients and help them preserve their privacy.