More Condo Projects Going Rental

In many bubblicious areas across the country condo projects are turning to rentals as is the case in the Columbia Heights neighborhood in Washington, DC. Columbia Heights News reports that:

We just got word from a number of readers that the Allegro condominium development will become rental apartments. Allegro condo purchasers were
recently sent letters from the developer informing them of the news and providing assurance that their deposits will be returned as a result of the conversion to rentals.

The reason cited for converting the condos to apartments was the downturn in the housing market and the credit crunch. Condo purchasers were offered the option to lease their units. Allegro follows Highland Park as another major condo project in Columbia Heights that is converting to apartments due to slowing sales.

This is generally a good thing for condo purchasers there. They get back their security deposits and thus won't lose money on a depreciating asset.