Weekly Commercial Real Estate Terms

Condominium Conversion Transforming the use or ownership of property, generally income-producing real estate, e.g., converting apartments into condominiums. Conversion may involve remodeling or partitioning and relocating tenants who do not choose to buy their units. For example: when a property (multi-family, office, or industrial) is purchased for the purpose of converting it to a “for sale” property in order to sell individual units. Say a forty-unit apartment building, currently rented as apartments, is purchased for conversion to sell the individual units. The legal description may or may not reflect a condominium plan. If not, then the legal description will have to be changed. Once the individual units reflect separated legal descriptions, the current tenants are relocated during reconstruction/remodeling. After reconstruction, the units are listed for sale, and existing tenants at the time of the conversion are usually offered the first chance to purchase the units.]]>

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