If you’ve been apartment hunting in New York City, you may have stumbled across listings labeled “sponsor unit” and wondered what makes them special. Or maybe you’ve heard whispers about them being the “secret backdoor” into competitive co-op buildings.

As a moving company that’s helped thousands of New Yorkers relocate into sponsor units across Brooklyn and beyond, we’ve seen firsthand why these apartments are so coveted—and why they’re worth understanding, even if you’re not planning to buy one yourself.

What Exactly Is a Sponsor Unit?

A sponsor unit is an apartment that has never been sold before—it’s being offered on the market for the very first time. But the definition changes depending on whether you’re looking at a condo or co-op:

In a condo building: The sponsor unit is owned by the developer and is going up for sale for the first time. Sometimes these are brand-new units in freshly completed buildings, or they might be apartments the developer held onto and rented out.

In a co-op building (where things get interesting): The sponsor unit is owned by the original owner or the corporation that originally converted rental units into co-ops. Many buildings in NYC—especially throughout Brooklyn—were converted from rentals to co-ops during the conversion boom of the 1980s.

Here’s the key detail most people don’t realize: an apartment is only sold as a sponsor unit once in its life—the sponsor’s rights do not transfer with the unit. After that first sale, it becomes a regular resale apartment.

The Game-Changing Advantage: No Board Approval

This is the big one. When purchasing a sponsor unit in a co-op, buyers can make the purchase without approval from the co-op board.

Let me put this in perspective. Normally, buying a co-op in NYC means:

• Compiling a massive board package with every financial detail of your life
• Providing tax returns, bank statements, reference letters, and employment verification
• Sitting through an intimidating board interview
• Waiting weeks (sometimes months) for approval
• Facing potential rejection for reasons that are never explained

With a sponsor unit? You skip all of that.

If you have the money, you can buy the unit—it’s as simple as that, with only your lender’s financial requirements mattering, not the co-op’s.

Who Benefits Most from Sponsor Units?

From our experience moving buyers into sponsor units, certain groups of people benefit enormously:

Freelancers and self-employed professionals: Co-op boards notoriously prefer W-2 employees with traditional income. Sponsor units open up opportunities for buyers with less traditional incomes—such as freelancers, consultants with contract work, or those who are self-employed.

Foreign buyers: Many co-op boards have restrictions on foreign ownership or pied-à-terre purchases. Sponsor units don’t care where you’re from.

Buyers with lower down payments: While many co-op boards require 30% down, sponsor units can potentially accept a 10-20% down payment, making co-op ownership accessible to more buyers.

Anyone who values privacy: You don’t have to share your entire financial history with your future neighbors who sit on the board.

Investors: While you’ll still need to follow the building’s subletting rules after purchase, sponsor units are often the only way investors can get into co-op buildings at all.

The Brooklyn Sponsor Unit Landscape

Brooklyn has a particularly rich inventory of sponsor units, especially in neighborhoods with beautiful prewar co-op buildings that underwent conversion in the ’80s and ’90s.

Park Slope, Windsor Terrace, and Prospect Heights are goldmines for sponsor units in classic prewar buildings with original details. We’ve moved clients into sponsor units here with herringbone floors, crown molding, and built-in bookshelves that you just can’t find in new construction.

Brooklyn Heights and Carroll Gardens feature sponsor units in co-ops with serious architectural pedigree—think limestone facades and meticulously maintained lobbies.

Crown Heights and Bed-Stuy offer sponsor units at more accessible price points, often in buildings on beautiful tree-lined blocks.

Ditmas Park and Kensington occasionally have sponsor units in smaller co-op conversions, where you might land a garden-level apartment with private outdoor space.

The challenge? The demand is high and inventory low for this type of apartment, so anyone looking specifically for a sponsor unit must be willing to stick it out for the long haul.

The Catch: What You Need to Know Before Buying

Nothing’s perfect, and sponsor units come with trade-offs you should understand:

Higher Closing Costs

For co-ops, sponsor units carry higher closing costs than resale units, with NYC transfer taxes adding almost 2% of the purchase price to the buyer’s closing costs. The sponsor typically passes these costs to the buyer.

Condition Concerns

Since many sponsor units were occupied for a long time by rent-controlled tenants, they may often be in “estate condition”—real estate speak for “hasn’t been touched since 1983.”

We’ve helped clients move into sponsor units where the kitchen still had the original avocado-green appliances and the bathroom featured pink tile from the Eisenhower administration. It’s not uncommon for sponsor units to require somewhere around 20% of the selling price in renovation work.

That $500,000 sponsor unit might need $100,000 in renovations. Budget accordingly.

Potential Legal Complications

If a sponsor unit was previously a rental, legal issues might arise, especially for rent-controlled or rent-stabilized units. You need a good real estate attorney to verify the previous lease was properly terminated.

Premium Pricing

Even if a sponsor unit needs significant renovations, it might not come at a discount, as many buyers are willing to pay a premium for the ability to sidestep the co-op board.

The Moving Day Reality: What We’ve Learned

After moving hundreds of sponsor unit buyers, here’s what we’ve noticed:

Renovation timing is everything. Most sponsor unit buyers plan major renovations. Smart ones schedule the renovation before moving in, which means coordinating the move-in date carefully. We’ve helped clients move into temporary housing while contractors gut their sponsor unit, then moved them again into the finished space.

Original condition means original challenges. Those charming prewar details also mean narrow hallways, no elevator, and sometimes doorways that won’t accommodate modern king-sized mattresses. We plan ahead for these situations.

Storage during renovation is common. Many sponsor unit buyers need short-term storage while work is being done. Factor this into your moving budget.

The excitement is real. Despite the challenges, buyers moving into sponsor units are often thrilled—they’ve gotten into a building or neighborhood that would have been impossible through the traditional co-op route.

How to Find Sponsor Units in Brooklyn

Sponsor units are located throughout the city, with the majority in prewar buildings, although a few new development co-op buildings with sponsor units can also be found in the Bronx and Queens.

To find them:

• Use the “sponsor unit” filter on StreetEasy and other listing sites
• Tell your real estate broker you’re specifically interested in sponsor units
• Search for “no board approval” in listing descriptions
• Be patient—depending on your needs and available inventory, you should plan to devote six to 12 months to finding a suitable sponsor-owned apartment

Is a Sponsor Unit Right for You?

A sponsor unit makes sense if:

• You’re self-employed, freelance, or have non-traditional income
• You can’t meet typical co-op board down payment requirements (but can still afford the apartment)
• You’re a foreign buyer or buying a pied-à-terre
• You value speed and want to close faster
• You don’t want to go through board approval scrutiny
• You’re comfortable with renovation projects

It might not be right if:

• You’re on a tight budget and can’t absorb the higher closing costs
• You need a move-in ready apartment (unless it’s a renovated sponsor unit)
• You’re uncomfortable with potential legal complexities
• You want the absolute lowest price (resales might be cheaper)

The Bottom Line

Sponsor units are one of NYC’s best-kept secrets—a legitimate way to bypass one of the most stressful parts of buying a co-op while gaining access to some of Brooklyn’s most desirable buildings.

Yes, you’ll pay a premium. Yes, you might need renovations. But for many buyers, the ability to avoid board approval and close on their timeline is worth every penny.

After all, we rarely meet anyone who regrets buying a sponsor unit. But we’ve met plenty of people who wish they’d known about them sooner.

Ready to move into your sponsor unit?

Whether you’re moving into a gut-renovated beauty or a fixer-upper with original details, ZeroMax Moving & Storage | Moving Company NYC understands the unique challenges of sponsor unit moves—from coordinating around renovation schedules to navigating prewar building quirks. We’ve helped hundreds of sponsor unit buyers make their transition smooth, and we’re ready to help you too.