What does the term 'Conversion' refer to in real estate?

The term 'Conversion' in real estate specifically refers to the process of transforming one type of property into another, particularly the transition from apartments to condominiums. This process involves changing the legal and physical aspects of a property to allow different ownership structures.

In the case of converting apartments to condominiums, the property is restructured so that individual units can be sold to different owners, while common areas and facilities remain jointly owned. This conversion often involves complying with local regulations, modifying property deeds, and sometimes renovating certain aspects of the building to meet condominium standards.

The other options do not accurately reflect the meaning of 'Conversion' in real estate. Changing a residential lease to a commercial lease does not involve altering the structure or nature of the property itself, while buying property for investment purposes speaks more to the financial aspect rather than the physical alterations or restructuring of properties. Renovating an old building does entail changes, but it does not imply a change in the fundamental use or ownership structure of the property like conversion does.