Q: Industrial condominiums are not that common here on Long Island however, why are they so popular in other parts of the country?
A: The answer is interesting. As Long Island is considered a “mature” market (having been largely developed in the 1940’s & ’50’s)with limited land available (Islands are always limited) there is virtually no undeveloped industrial land in Nassau County left. Therefore, warehouse condos are more frequently seen in newer/developing areas.
Q: Who will occupy the building?
A: Only “clean” uses will be permitted in the building. In other words, there will be no uses that could provide any negative environmental impact to the building and the owners of the individual units. Additionally, no uses that will compromise the “quiet enjoyment” of the tenants will be permitted such as an excessively noisy use. This is all spelled out in the by-laws of the condominium, giving the occupants an added layer of protection.
Q: Can I do what I want?
A: Yes. Provided your business operation does not compromise the environment or quiet enjoyment of others.
Q: Can I sub-let my unit once I own it?
A: Yes. The only approval required is that your sub-tenant conforms to the permitted uses in the building (Once again, a use that cannot compromise the environment, be noisy or require a disproportionate amount of parking, e.g. A Limousine company.)
Q: Can I resell my unit?
A: Yes, without limitation. If you wish to resell you may do so at anytime.
Q: Do I pay CAM (Common Area Maintenance) charges?
A: Yes, there is a monthly CAM fee that you will pay (it is a pro-rated amount relative to the size of your unit) this fee will cover the annual cost of snow-plowing, common electric (parking lot lights and building lights) landscaping and general maintenance, etc. This fee is a fraction of what it would be if you were to purchase a “free-standing” building because there is an economy of scale.
Q: Who is in charge of running the Condominium?
A: Initially, the sponsor will manage the building and make the necessary operational decisions. Then once the Condominium is declared effective (which it was in 2008) each unit owner will have a single vote on the board. No matter what size unit (larger or smaller) each unit has a vote. There will be no less than one board meeting per year. The board may elect to hire any management company it wishes to operate the condominium. Owners will vote annually on service contracts (e.g. which company we hire to plow the snow, etc.) as well as other general maintenance and larger capital projects (e.g. significant work that might need to be done to the roof or parking lot)
Q: How do I know that the CAM charges won’t be raised without my having any control?
A: There are a very limited number of items that CAM actually covers. They include water, a basic electric utility (for the parking lot & exterior building lights) landscaping, plowing and general maintenance of the building. Therefore, the CAM cannot increase that significantly because there are not that many variables that can be impacted. All major work to the building has been (or will be) completed and is new, including all of the glass windows & doors, garage doors, new façade and new parking lot. Virtually all other services such as HVAC related systems are controlled and owned by the individual unit owners. Additionally, at closing, each unit owner contributes $1000. ($20,000. in total) towards a “capital fund.” This fund is held in case of some significant, unforeseen, future requirement. You can find more information about this in the offering plan.
Q: What do I actually own when I buy a unit?
A: Just like a residential condominium, you as the owner you will own the “walls in” and accordingly, anything inside your unit will be your responsibility to maintain. From the “walls out” (Including the façade and the roof) is the responsibility of the Condominium.
Q: Can I get financing for a warehouse condominium?
A: Absolutely, YES! Several units have already sold and received wonderful financing. Despite what you may hear in the news about banks “not lending,” as a user of the building for your own operating business, banks are very happy to make loans to credit worthy companies. In fact, all of the units appraised well and many of our buyers are receiving 90% financing through a special program specifically designed for small businesses with the SBA (The Small Business Administration).