What is a sponsor unit?

A sponsor unit is a type of apartment in a co-op building that is owned by the sponsor, or the original developer of the building. These units are typically sold by the sponsor when the building is first converted to a co-op, and they are typically larger and more desirable than other units in the building.

Sponsor units are often used as a way for the sponsor to make money on the building, as they are usually sold at a higher price than other units in the building. The sponsor may also rent out the unit instead of selling it, or use it as a pied-à-terre for themselves or their family.

One of the benefits of buying a sponsor unit is that the buyer may be able to purchase the unit with less strict financial requirements than would be required for other units in the building. However, sponsor units may also come with certain restrictions, such as limits on subletting or alterations to the unit.

Overall, sponsor units can be a good option for buyers looking for a unique and desirable apartment in a co-op building.