Condo reversions are nothing new. More than a few would-be condominium developers or converters have opted to rent out at least some of their unsold units, for the sake of keeping occupancy up at their buildings and seeing some sort of return. A recent article from the Wall Street Journal, however, revisited the concept, specifically, as it relates to downtown revitalization projects.

What struck me about the article, however, is the opportunity some multifamily investors would have in similar situations. The subject property, the Three Sixty Residences in San Jose, CA—part of an overall effort to revitalize the area—was a 23-story condo project that went over budget and was undersold. A year after delivery, the tower sat empty.

But according to the WSJ, a Beverly Hills-based Kennedy Wilson has agreed to take over the $119-million construction loan on the asset at a discount from the lender, US Bank. Upon closing, the firm will foreclose on the property and convert it to a rental. Though not what the original developers intended to attract, it’s believed that renters would bring life to building that would have otherwise sat vacant in the middle of Downtown San Jose.