Below is a link to an excellent resource regarding de-conversion by Avison Young:

The first time I mentioned de-conversion in a blog post was back in December 2017, months before State Parkway received an unsolicited $45MM offer from The John Buck Company. The post can be found below:

This means I was right about State Parkway being a prime candidate for de-conversion because its business model is broken and assessments are unsustainable.

This page is still under construction!!!

Buck’s offer, my assumptions and calculations (unit owner specific) are as follows:


Price per s.f.: $276.00 (Buck’s offer)

Price per parking space: $25,000 (Buck’s offer)


Total s.f. (excluding garage): 167,857 (estimated; could be as much as 5.5% too high)

2019 Annual Rental/s.f.: $33.60/s.f ($2.80/s.f./month per Buck x 12 months)

2019 Assessments per s.f.: $13.15/s.f. (Source: 2019 Budget)

2019 Cost of Capital per s.f.: $15.96/s.f. (5.55% of average book basis, pre-tax)

2019 Cable T.V. Expense/unit: $459.36/unit (Source: 2019 Budget)

2019 Book and Tax Depreciation: $9.57/s.f. ($49,078,532; 90% non-land; 27.5-year life)

2018 Property Taxes/s.f.: $4.65/s.f. (ballpark estimate – to be replaced with actuals next month)

Reserve Fund: $7.07/s.f. + $581.25/deeded parking space

Special Assessment: $10,000,000 (see blog post)

NOTE: Use the calculations, above and below, at your own risk. The above calculation form was created solely for purposes of promoting discussion among unit owners.


P/E/s.f. @ 20x = $308/s.f. (way too early calculation) Formula still under construction

P/E/s.f. @ 26x = $400/s.f. (way too early calculation) Formula still under construction

Total Buck Offer = (calculated) Will hold off until Buck corrects its unsolicited $45MM offer for errors and other inconsistencies.

Total Special Assessment = (calculated)

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