After the housing bubble burst in 2008, foreclosed homes,shuttered windows and overleveraged for-sale properties becamefamiliar scenery across the country. Despite its generally robustconstitution, even New York City’s multifamily market—one of thecity’s biggest sectors—suffered a blow just like suburbia.

Before the crash, hungry developers ravenously bought up land inareas like Williamsburg, Brooklyn and Long Island City, Queens tobuild shiny new condominiums, expecting to pre-sell enough units toobtain construction financing. But as credit tightened, many ofthese ambitious projects never filled up—and stopped altogether,leaving behind concrete and metal shells.

But now, those outer-borough locales are beginning to stabilizeas new investors pour capital into stalled or foreclosedmultifamily properties. “There’s absolutely demand for stalledsites, but it’s a little different,” SpencerGarfield, managing director at Hudson RealtyCapital, a real estate fund manager with more than $1.5billion in assets, tells Real Estate Forum. “There’s acertain risk associated with taking on someone else’s stalleddevelopment, and not everybody has the stomach for that risk.”