Does anyone have experience converting a school into an income property? What are the options?
I have an off-market deal for a nice elementary school in Texas. The town has around 50,000 people and growing.
School has 18 classrooms, 6 large community style school bathrooms, gymnasium, 3 mobile home style classrooms, and an auditorium.
I have a good connection into the city if we need to re-zone. Comes with 3 acres of open grass space.
Any ideas on how to convert this into an income property?
Seems like that would make a great multi-tenant office and professional services building. Given the square footage, if a relevant rezone was possible, sounds like a fantastic deal.
Lawyers, accountants, massage therapists and other health professionals, etc. are often looking for these types of spaces IMO, and at that price point you could be very aggressive with rents.
@John D. thanks for the reply. I will look into your suggestions.
Office might be a good product based on the building shell however you need to make sure the market demand is there to support the space. I've looked at a few vacant schools over the years and couldn't make the numbers work. It really depends on the area, property values, and land cost. More than likely you will need to gut the entire building and start from scratch to design a product that meets the markets needs. That might not be the case in which @John D. 's idea might work well. However generally a school type building is going to require a large gut rehab to properly repurpose. You could end up spending more than the cost of new construction depending on the building.
With that said I think it can still work. I think properly determining the needs of the market are extremely important. From there you can evaluate the cost to repurpose the building and either pursue or move on based on how it pencils. What is the square footage of the building? What is land value in the area? What does quality, renovated/new office space lease for? Where are multi-family rents in the area for new/renovated product? I would assume it has a large parking lot already. What is the prevailing cap rate in the area for new/renovated office product? How about multi-family product? Does it sit on a busy street?
Find a church you can lease it to.
I think you have a lot of options. If you want, give me call and I'll give you my two cents.
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