Granite Realty Partners has completed fundraising for an investment vehicle that will de-covert condominiums. The company's strategy is to purchase what it calls "broken condo units," and convert the property from condominium complex into an apartment building.

Granite has already been busy purchasing qualifying condo units. The company currently owns 1,500 units in Illinois and Florida, and it has already completed the condo de-conversion business plan in four properties. Plus, Granite has a current pipeline of four projects totaling more than 1,200 units. These properties are well located but have not been successful as condo projects due to timing or home buying market conditions.

There has been past investor interest in what has been called fractured condo properties. Following the Financial Crisis in 2008, many condo projects were forced into apartment structures when the units didn't sell. In some cases, a portion of the units had sold, while others were leased, but in all cases, the original property had been entitled and build as a condo project. In 2016 and 2017, there was increasing investor interest to purchase these deals. Berkadia, for example, purchased $60 million in fractured condo deals in Florida back in 2016 when these deals were growing in popularity.