Monday, March 16th, 2020
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NEW YORK CITY- Some condo developers have abandoned selling units because they’ve only been able to sell 10 percent of the property to which they resort to renting the remaining 90 percent. This trend hearkens to weakened demand for condo units, especially in markets where there is a large affordability gap between high-end apartments and affordable housing, Marc Heller partner at law firm Akerman, tells GlobeSt.com.
“A lot of condo developments that kicked off several years ago, many of them literally or effectively come to resemble rentals than condos,” Heller said. “Some condos developers have abandoned selling units cause they’re only able to sell 10 percent and rent the rest of the 90 percent.”
Heller refers to these condominium developments as ‘busted condos.’ Some of the properties, Heller and his clients take over management to implement the apartment model when existing investors want out or