The 1,072-unit Promenade cooperative in Bethesda will not be turned into a condominium to make units more saleable, the developer at the project has told residents.
Rose Associates, the New York developer in charge of managing and marketing the luxury high-rise for Chase Manhattan Bank, said in a letter that it had studied the possibility of converting from cooperative to condominium ownership but decided it was not feasible.
Rose also said it hoped to start a sales program in January, to include some form of favorable financing.
Chase Manhattan took the project over from its controversial owners, American Invsco, earlier this year after Invsco defaulted on loans to Chase. Invsco had converted the building to cooperative status, skirting Montgomery County's 4 percent condo conversion tax but making the units more difficult to sell because Washington-area residents generally are not as familiar with co-ops as they are with condos.
Rose Associates took over management in September. Company President Daniel Rose said at the time that the main decisions to be made were whether to convert to condo status and what kind of price-and-financing plan to develop to sell the many unsold units.
The letter to residents, signed by Promenade supervisor Elihu Rose, said that ". . . legislative and government constraints to the conversion process, the enormous inherent costs (which must ultimately be reflected in prices), and the delays and uncertainty for possibly another year, all preclude pursuing the condominium route."