New Construction Mixed Use Ideas

3 Replies

I own a lot in a downtown area in Lafayette CO and would like to build.  The lot is 46.5' by 150' with 20' and 10' set backs (which can be shortened according to the city planners I spoke with).  Zoned mixed use and sandwiched between a BBQ restaurant and an old historic home built in 1900 converted to commercial property which I also own.  That building cannot be torn down.  I have a long term tenant (retail vintage store) and a 1 bedroom apartment attached at the rear of the building.  My thoughts are to construct a building with 2 commercial spaces on the first floor (front and back) with 2 living spaces on the 2nd floor.  I thought of creating a condominium association for the 2 living spaces and selling those and keeping the 2 commercial spaces.  The other thought is to keep the 2 living spaces as rental apartments.  There a lot smarter people on this forum than me, so I would love some feedback to this idea.  

Be out of town when the house "accidentally" burns down.  I hate historical properties.

In all seriousness.  Assuming this is the property with the statue and the american flag, I see a few problems.  These seems to be a lack of street parking up front, which makes things difficult for retail facilities.  It looks like the rear 25' of your property is parking, which is good, I would imagine that these would go a dedicated parking to the condos up top. What you do have going for you is that a typical retail shop is ~20'x60', or 1,200sf.  I would recommend laying out the stores front to back with a demising wall, giving both stores street exposure and thus higher rents.

I don't see a lot of 2 story buildings in the area, so you want to make sure you are not overbuilding for the neighborhood.  You could possibly do a 30x40 1 story condo in the back as well to maximize the use of the property.

What it really comes down to is cost.  I don't know much about construction costs of 2 story buildings, but let's assume that you are paying about the following:

Soft Costs                           $6/sf

Pre Construction Costs  $11/sf

Site Work                        $25/sf

General Conditions         $11/sf

Building                           $70/sf

So to get a complete 1 story building, with HVAC, utilities and a "Vanilla Shell" you are looking at about $123/sf.

What are rents in the area?  Gauge your return now based on your construction costs.

I hope this helps.

David

Compass Development Group

I wouldn't do condos.  I'd rent.

Condominiums have a way of creating legal problems, including foreclosures on a unit, or both; therefore, you get a condo member you might not want.  Costs for setting up a condo probably aren't too punitive, but, you would have to incorporate all of your desires, as well as the historical districts desires, into the Articles of Incorporation, CC&R.s and bylaws. 

You could be the president of the board, and handle all of the business of the association, file taxes, handle common area expenses, etc.

You'd get your money now; but, you'd pay for it later...you no longer control those units.

I'd rent.

Promotion
Vacasa
Vacation Rental Property Management
We do the work. You get the ROI.
We do it all for your vacation rental. All—marketing, pricing, guest requests, housekeeping & more.
Free income estimate