A building structured with characteristics of both a condominium and a cooperative is a hybrid form of ownership in real estate. This arrangement typically involves a building containing both condominium units and commercial spaces or rental apartments owned by a single entity. An example includes a residential tower where individual apartments are sold as condominiums, while the ground floor retail spaces and some apartment units are owned and operated as a cooperative or by the building itself.
This dual structure can offer financial advantages to developers and building owners, allowing for diverse revenue streams and potentially lower tax liabilities. Historically, such arrangements have been utilized in large urban centers to maximize land use and generate income from various property types within a single building. This mixed-use approach can contribute to the financial stability of the building, as income from commercial spaces or rentals can offset residential operating costs.
