Multifamily•8 min read•September 1, 2023
Condo Deconversion: A Multifamily Strategy
How converting condominiums back to rentals can create value in the multifamily sector.
Condo deconversion—purchasing individual condo units to reconstitute a building as rental—can unlock significant value when executed properly. The strategy requires patience, capital, and legal expertise.
When Deconversion Works
- Buildings with deferred maintenance and capital needs
- High investor ownership vs. owner-occupants
- Rental market values exceed condo values
- Willing sellers motivated by assessment fatigue
Execution Challenges
Assembling 80%+ of units triggers bulk sale provisions in many states. Legal and governance considerations require experienced counsel.
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