Motel to Multi-family Conversion - Under Contract -

8 Replies

Hi BP Community, 

I'm currently under contract on a 21 key motel that I plan on turning into about 14 apartments. I'm a fairly experienced investor, but I have never been involved in any sort of development or re-development project. I'm mainly looking for advice on building my team and doing due diligence. 

 The city is very much on board with helping me make this happen, so no problems there. I have a great relationship with a local bank who will finance it and have a healthy budget for the project, so no problems there either. I'm struggling with the technical steps of figuring out if this project is feasible, redesigning the layout, electrical, plumbing, HVAC ect. Do I hire an architect first to draw up a floor plan, let a GC take it from start to finish, or something else? I have no idea! Help please!

Thank you

@Nathan H.

You will 100% need an architect. You can't do this without one. This should be your first professional you get on board. Period. Reason being is the building code for a motel is different than an apartment building. You can't do a true due diligence study without know what you have to change and add. You don't have to have the plans completely finalized but theres a lot more than just walls an paint you have to take into account....like adding sprinklers if your building is old enough that it doesnt have any. 

The architect will also help you get contacts for a GC and get it bid too. This should be the first place anyone starts when doing commercial development, especially beginners. 

This could be a fun project. Best of luck!
 

Congrats @Nathan H. .  You will definitely need both a contractor and architect, but which one you find first doesn't matter. I would find one team member that you really want to work with and get referrals from them. Many times a good GC (or architect) will have contacts for everyone else you need.

I'm a civil engineer and CM in the Denver area. Is the project in CO?

@Adam Lacey sorry for the late response, haven’t logged in for a while. The project is in Wyoming.

Since posting I hired a GC who was recommended by my bank, property manager and electrician. Seems to have a great reputation and is well connected with the city. After doing a lot of due diligence, I’ve decided there’s no need for an architect on this project. We’re just adding a few walls and doors. The use is close enough to the original use that most things are grandfathered in. It seems like this may be a more simple project than I was anticipating. 

That's awesome! Good luck with it.

Originally posted by @Nathan H. :

@Adam Lacey sorry for the late response, haven’t logged in for a while. The project is in Wyoming.

Since posting I hired a GC who was recommended by my bank, property manager and electrician. Seems to have a great reputation and is well connected with the city. After doing a lot of due diligence, I’ve decided there’s no need for an architect on this project. We’re just adding a few walls and doors. The use is close enough to the original use that most things are grandfathered in. It seems like this may be a more simple project than I was anticipating. 

@Nathan H. Curious what type of tenant you are targeting for this project once complete?  I have a similar opportunity and most of what I find is marketed towards low-income housing.  If your project is not for low-income housing, then I would love to talk more about the details!