Spencer Street Condominiums

Brooklyn, New York

Two sister apartment buildings with approximately 80 units on Spencer Street in Brooklyn’s Bed-Stuy neighborhood were schedule to be converted to condominiums. 

As a resident and organizer of social events, Jay was well known by many of his neighbors and he took the lead in organizing residents in making a response to the proposed conversion.  While the conversion of rental buildings to condos is a very heavily regulated action in New York and as an investment, the process looks very similar to an offering of a security and is overseen by the Attorney General (AG) and is very complex.

Early on, Jay familiarized himself with the regulations and reached out to staff at the Office of Attorney General.  He also worked with his neighbors to canvass door-to-door both buildings to confirm they were aware of the proposed conversion and ensured they received the proposed offering/red herring from the owner.  He also helped organize, host and facilitated resident meetings and provide guidance in establishing committees of residents. 

He ensured all residents were aware of the process for filing comments and concerns regarding the offering to the appropriate representatives at the AG’s Office, facilitated and summarized the collection of comments from residents and organized them for submission. 

Using his real estate and construction experience, he identified several significant errors in drawings, projected operating budgets and other elements of the offering/red herring.  He also led a team of neighbors with similar background (architectural, engineering and construction) to conducted a condition assessment of the building – which included the envelope, major building systems and common area. 

The offering/red herring did not include a capital needs assessment and the committee determined that much of the primary mechanical equipment was at the end of its useful life.  And, while the committee identified other envelope and systems challenges and were concerned that the projected budget for improvements was inadequate.  This had a direct and dramatic effect on the offering/red herring and caused major changes in the final offering.