Have you come across the term “SPONSOR UNIT”, but weren’t sure what that entirely meant?
If you already know, you’re probably wondering how to find one of these rare, very desirable units! A sponsor co-op is an apartment that still belongs to the original owner or corporation responsible for turning a building from a rental into a co-op. In other words, a sponsor unit is a rental that is now being sold by the building’s original owner. Buying a sponsor unit allows you to skip the co-op board interview! This is the biggest advantage of buying a sponsor unit: You’ll have less scrutiny and move in sooner than with a regular resale!
But buyer beware: Sponsor apartments can be slightly more expensive, have more wear and tear issues, and often have higher closing costs than regular units. And you will still have to abide by the rules of the actual building. You may be required to get all renovation plans approved by the co-op board before you start a project.
The good news is that sponsor units are all over the city, and especially in Upper Manhattan! If you’re a homebuyer who want to avoid board approval, let your buyer’s agent know.