Though it remains unclear what designs, if any, a New Canaan man has on the Heritage Hill Road condominiums that he’s been buying up since early-2016 through a limited liability company, the homeowners association there appears to have taken steps to try and limit the resident’s ownership.
The condominiums on Heritage Hill Road. Credit: Michael Dinan
After a flurry of purchasing activity in the past week (see table below), West Road resident Thomas Hudson—principal of Captain Jack LLC—now owns 19 of the 1960s- and ‘70s-built condo units, land records show.
According to a Feb. 16 letter that the Oenoke Association sent to owners last week, the group’s Board of Directors had put forward a “Declaration Amendment to Limit Ownership” that was to have been voted on during a Feb. 21 meeting.
But the board withdrew that proposed amendment, according to the letter, a copy of which was obtained by NewCanaanite.com.
“We feel that this is a necessary step since the LLC recently reached over 10% ownership in the Association, and the passing of an amendment to limit ownership to an even higher threshold no greater than 9.9% still requires a new vote to be taken,” the Oenoke Association letter said.
“We want to thank you the overwhelmingly majority of owners who supported this initiative and we ask for your continued support in preserving our Association. We have found that there is a true spirit of community within the Association and we look forward to continuing the dialogue that we have started — to find a solution that benefits all Unit Owners. A solution that allows the Association to be a wonderful place to work, live and invest in New Canaan for many years to come. The Board expects to provide an ‘Update to Owners’ in March as to the next steps in this process but since there is a board meeting on Feb. 23, we will have the Association’s attorney present to address questions/concerns relating to this issue.”
What those concerns are, and what a hopeful “solution” specifically would address, remains unclear. The head of the association could not be reached for comment.
Hudson also has not been reachable. Captain Jack LLC has spent more than $6.7 million on the units, records show.
Realtors commenting on NewCanaanite.com have cautioned that if one party owns more than 10 percent of all units, the complex itself becomes unwarrantable with regard to conventional lending. As a result, owners may have difficulty selling to buyers with conventional mortgages, and that could put one party in a position to force down prices if the only potential buyers are all-cash, Realtors have cautioned.
Here’s a table that breaks down Captain Jack LLC’s acquisitions of the condo units since early last year:
Captain Jack LLC-Acquired Heritage Hill Road Condos
| Unit | Selling Price | Property Transfer Date |
|---|---|---|
| 62C | $435,000 | Jan. 27, 2016 |
| 83A | $362,500 | June 2 |
| 64C | $275,000 | June 14 |
| 72B | $354,000 | July 8 |
| 167A | $382,500 | July 8 |
| 76B + garage | $325,000 | Aug. 10 |
| 86 + garage | $450,000 | Aug. 10 |
| 66A + garage | $300,000 | Aug. 31 |
| 80C | $300,000 | Aug. 31 |
| 61 + garage | $495,000 | Sept. 23 |
| 151A | $300,000 | Dec. 29 |
| 132C | $320,000 | Jan. 25, 2017 |
| 88A | $350,000 | Feb. 2 |
| 82D | $375,000 | Feb. 8 |
| 151A | $300,000 | Feb. 16 |
| 76D | $320,000 | Feb. 17 |
| 81C | $300,000 | Feb. 17 |
| 108B + garage | $455,000 | Feb. 17 |
| 70B | $330,000 | Feb. 21 |
| Total | $6,724,000 |
At Park Mead Condos we face a related problem, which is that when there are fewer owner-occupied units (vs. investor units leased to renters) most banks will also avoid lending. This definitely has forced down prices and made conventional buying and selling difficult. Park Mead and Heritage Hill make home ownership in New Canaan possible for many working people and retirees, so I understand why folks there are feeling anxious.