The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1925-11-06
, OFFER HOME OWNING CHANCE
Pennwood Realty Company
Builds Cooperative Homes
Can Be Secured for
$1,000 Down Payment
Balance Monthly.

The Pennwood Realty Company,
which is building Pennwood Homes,
cooperative housing project, at
3540-3550 N. Pennsylvania St., is an
Indiana Corporation, having a paid
up capital of $227,500, of which
$3.50, 900 is preferred stock maturing
and being redeemable serially from
1927 to 1887. The remaining capital
aggregating $97,500 is divided into
1850 shares Of common stock having
a par value of $50 each This COM
mon stock has been divided into
twenty-six units of seYenty-five
shares each and these stock units
are being sold to twenty-six pro
prietary tenants at $S,750.00 for
each unit of seventy-flve shares, on
basis Of at least 100000 as a
down payment with the privilege Of
having the remainder of the pur-
chase price paid out Of the earnings
from the property.
These homes and the garages are
resignated by letters Of the alphabet
from "A" to ~" and each pro
prletary tenant gets a fifty year
lease covering the particular home
selected. Under the terms of this
lease, he pays in to the City Trust
Company, Trustee, $50 a month,
which fund is used in meeting one
twenty-sixth of the cost of opera
ton, such as taxes, insurance, heat,
light, water, outside repairs, main
tenance and janitor service plus in
terest on deferred payments and
the balance remaining at each six
months adjustment is applied to the
purchase price of such common
stock units.
Pay Out in Twelve Years
1t has been estimated these com
mon stock units will be paid i'll from
ten to twelve years on the basis
above outlined, which then leaves
the holder, the owner of one-twen-
ty-sixth interest in the Pennwood
Realty Company, which in turn
owns the entire property. When
this condition prevails, each proprie-
tary tenant will pay in to the City
Trust Company, Trustee, or the
agent of the property, such sum as
will be necessary to meet one
twenty-sixth of the corporate e2
penses of the Penwood Realty Com
pany.
On a basis of 500 a month, the
Trustee will receive S2S,0S0 a year,
out of which sum it is estimated not
to exceed $1,000 will be expended in
costs of operation, leaving approx
mately $21,OS0 to pay interest on
deferred payments and liquidate the
same. To apply the same estimate
on a single unit would result in the
Trustees receiving 1850 from each
proprietary tenants of which $270
would be consumed in meeting oper.
ating costs. leaving $50 for interest
and to liquidate the purchase price.
This presents q very favorable STU
alton for the proprietary. tenant in
that he is receiving his shelter,
garage, heat, light, water, refriser
alton and janitor service for APP
proximately $3.50 a month.
Managed by City Trust
To avoid the undesirable features
Of cooperative enterprise. the man
agement and control Of the property
is vested in the City Trust Company
or such other financial institution as
shall be selected, which company
shall make all leases and supervise
the affairs generally of the holding
company. This plan eliminates
jealousies and unpleasant relation
ships and provides for an unbiased
Judgment on all matters pertaining
to the welfare of the property. Need
less to say, the terms of the leases
are very stringent, carrying for
fixture clause in case of misconduct
on the part Of the occupant OF the
particular home, ORION the part or
visitors in the home. The stringent
terms, however, assure a proper
environment for all proprietary ten
ants. without which the fundamental
purposes of the whole project would
fail.
If the owner Of one Of the stock
units. carrying with it a proprietary
lease, does not care to occupy the
home covered by such lease, it may
be sublet to a tenant meeting the
requirements as shall be laid down
by the management. The sub-rental
in such cases may be paid to the
agent for the account Of the owner
and all sums in excess of the $50 per
month may be turned over to him or
N.aI DI,k r.